business case analysis - tija company

Challenge Become 1st Integrated Recreation Property in South East Asia

ThemeInternationalization

Strategic Model

Untuk mencapai visi becoming 1st integrated property recreation in south east asia, kami menawarkan model strategy yang kami sebut “5 Pillars TIJA Strategic Model”. Strategic Modelini akan mampu menerjemakan bagaimana Coporate Vision di turunkan menjadi action plan. Tujuan yang ingin di capai dengan menggunakan strategic model ini adalah TIJA harus focusing on International Growth untuk meningkatkan international participant-nya, Dapat menghasilkan Product Innovation & Technical Advancement, Pencapaian World Rank ammusemennt / theme park untuk pencapaian Globa Recognation dan tentunya untuk menghasilkan Service Excellence.

Untuk mencapai tujuan tersebut terdapat 5 pillar yang harus di bangun seperti yang tergambar dalam table dibawah. 5 Pillar tersebut antara lain menempatkan focus pertama adalah People. Kami percaya dengan memliki dan mencipatkan people yang handal dapat menghasilkan inovasi-inovasi yang dapat menghasilkan kesempurnaan. Dalam pillat people ini tentunya TIJA harus memperhatikan beberapa factor dalam pengelolaannya, seperti halnya bagaimana meningkatkan Employee Satisfaction, menciptakan Reward System, menciptakan Career Opportunities untuk employee serta bagaimana TIJA mamou mengembangkan potential people melalui implementasi Corporate Learning.

Pillar ke dua adalah Leading In the latest Technology and alignment system. Dalam pillar ini TIJA harus leading dalam pemanfaatan teknologi termutakhir dan menciptakan system yang mampu mengintegrasikan seluruh Business Unit yang ada. Fakto yang harus diperhatikan yaiyu TIJA harus memiliki Business Intelligence yang baik, menciptakan Knowledge Management & Innovation System dan mencitptakan intelligence dalam semua fasilitas yang ada.

Pillar ke tiga TIJA harus melalukan Acceleration melalui penciptaan Product and Service Excellence, Creative Innovation, menciptakan International Program dan TIJA harus mempu menjaga kualitas faslitasm produk dan service.

Pilar ke empat, TIJA harus Capitalize national and international opportunities dengan membidik Targeting the Right Market, Choosing the Right Marketing Tools, menarik International Participant lebih banyak ke

TIJA serta membuat Loyalty Program sebagai bentuk apresiasi pengunjung yang loyal. Selain itu TIJA harus melakukan Strategic Collaboration yang dapat memberikan nilai tambah. Recognition sangat diperlukan sebagai wujud pengakuan terhadap TIJA.

Pillar ke 5 bagaiman TIJA harus achieve Sustainable growth of TIJA Group dengan mengintegrarikan seleruh business unitnya seperti Recreation, Resort, Property, Kuline, Merchandise. Satu hal yang sangat penting yang harus dilakukan adalah bagaimana TIJA melakukan expansi yang kami menyebutnya “Satellite Theme Park” di berbagai wilayah di indinesian dan South East Asia.

Pillars TIJA’s Strategic Model

Strategic Recommendation :

Stra

tegy

& E

xecu

tion

Becoming 1st Integrated Recreation Property in South East AsiaBecoming 1st Integrated Recreation Property in South East Asia

Acceleration Capitalize national and international

opportunities

Product and

Service

Excellence

Creative

Innovation

International

Program

Quality of

facilities

Targeting the Right Market �Choosing the Right Marketing Tools � International ParticipantLoyalty Program Strategic CollaborationRecognition

Employee

Satisfaction

Reward System

Career

Opportunities

Develop

potential

people and

implement

Corporate

Learning

Goa

ls

People Leading In the latest

Technology and

alignment systemBusiness

Intelligence

Knowledge

Management &

Innovation

System

Intelligence All

Facilities

To Achieve Sustainable growth of

TIJA GroupRecreationResortPropertyKulinerMerchandise Satellite Theme

Park

Knowledge Management, Integrated Initiative & Innovation Enabling Transformation with ICT

Focusing on International Growth

Product Innovation & Technical Advancement

World Rank ammusemennt / theme park

Focusing on Service Excellence

SWOT Matrix

Strengths Weaknesses

1) Experience of nearly 50 years in recreation industry in Indonesia.

1) Individual visitors starts showing decrease tren indicating the lowered competitive superiority.

2) Reputation as the best recreation managing company in Indonesia.

2) Some products has been aging, compared to those of competitors relatively newer.

3) Recreation units being managed have very strong brands and become the main choice of families (Top of Mind).

3) Change management far from optimal.

4) Competent and experienced management team in managing recreation business.

4) A limited source of fund for developing new product and business.

5) Good company‟s financial condition for continuous innovation and sustainable company‟s operation.

5) Lower employee satisfaction index.

6) Various, innovative recreation products with excellent theming, story, and technology acquistion.

6) Operational leverage relatively lower particularly from new product development.

7) Large local agent distribution network.

7) Company‟s long term strategy has not been responding to competition of recreative industry.

8) Vast land area with reserve for potential development at reclamation area, strategic location with sea view and easy access to public transport via toll road, busway, railway and airport.

8) Less popular mascot character.

9) High economy of scale allowing product innovation without major investment.

9) negative issues addressing far from optimal but affect the image.

10) Extensive network with international suppliers of recreation products.

Opprtunities S/O W/O

1) Growing recreation market with potential visitors from Jabodetabek.

Having a large agent distribution network, allows TIJA to create attractive promotion package to bring customer from ouside Jabodetabek to visit TIJA

TIJA could have a total or partial renovation (especially maintaining their property) to get trust / good image from the customer

2) Large potential visitors from loc al agents, mainly West Java, Central Java, Banten, and Lampung with

With new technologies, TIJA could upgrade their ride with the latest technologies.

TIJA could create an attractive promotion to attract customers

increasing growth trend.

3) Improving community‟s GDP (income).

Also with technology, TIJA could create a CRM to maintain their existing customer and attract new customers. TIJA should add more technologies to their riders

4) Development of non-ticket businesses (retail, F&B, Character).

TIJA also should create a safety campaign to have a trust from the market

5) Development of new tourism types (education, nature, sport, culinary, lifestyle, sea).

In terms of less fund, TIJA could collaborate with several brands to have a new ride. (example : Extra Joss sponsored x ride, Extra Joss could have a free promotion at TIJA)

6) Development of recreation network outside Ancol through cooperation, license, or acquisition (Java, Sumatra, and other major cities).

In terms of less fund,,creating several comercial spots at TIJA area, to give opprotunity to vendor to advertised.

7) Good relationship with stakeholders (shareholders, NGOs, community, government, employees, suppliers, financial institutions).

8) Investor, partner and supplier network especially for Ancol development.

9) Better transportation access.

Threats S/T W/T

1) Increasing number of companies that enter the recreation business both as competitors or substitutes.

In terms of pricing, TIJA could have a special package that could include entrance ticket and f&b

TIJA should consider to re-branding their name and mascot. To be more attractive and up-to-date, so more customer could be attracted.

2) Dynamic change in lifestyle of Jabodetabek residents, causing higher demand for product quality, variation, safety, and comfort.

By using CRM, TIJA could easily maintain their customer (by sending the latest news about TIJA, TIJA's promotion, etc)

TIJA should create more innovative events and activities to attract more customers

3) Ancol consumers are sensitive to new products and always look for new things in the form of either product, event or brand.

TIJA could be more closer with the media by creating media events, press conference about their latest technology, etc. They could also write an regular article about Jakarta's toursim in several media, to have a good brand image.

4) Local Gevernment regulation limit school‟s access to recreation in Ancol.

5) New comer such as Trans Studion dominates the media so that the intensity of their brand awareness is higher.

6) New comer has stronger financial capacity, backed up with agressive financing policy for investment in 20 theme parks in Indonesia, two of which are located in Jabodetabek.

7) Change in Local Government Regulation that inhibits reclamations.

8) Increase in prices of fuel and basic necessities leads to decrease in recreation budget so that consumers become more price sensitive.

TIJA’s Corporate Scorecard

Untuk menerjemahkan vision untuk action plan, kami menggunakan pendekatan Balanced Scorecar (Kaplan) memalui 4 persepective. Perspective Finance, perspective Customer, Perspective Internal Business process dan Perspective Learning & Growth. Berikut TIJA’s Corporate Scorecard

Penyelarasan TIJA’s Organization Structure

Dari hasil penerjemahan TIJA’s corporate balanced scorecard, untuk menjalankanya kami mengusulkan untuk melakukan penyelarasan organisasi seperi yang digambarkan di table dibawah ini. Tujuan dari penyelarasan ini agar elbih focus dan terarah baik di tingkat korporasi, Business Unit maupun Function Unitnya.

TIJA’s Corporate Value Creation through synergize SBU dan SFU

Corporate Scorecard

Strategic Business Unit Strategic Function UnitStrategic Business

Unit Scorecard

Recreation

Resort

Property Kuliner

Merchandise

Corp. Marketi

Corp. Commun

Corp. Innovatio

Corp. strategic & Busin

Corp. Finance

Corp. Comptroller

Corp, Human Capital

Corp. IT

ng ication

n

ess Development

Finance Finance

Increase TiJA's Profit Growth

v v v v v v v v v v v v v Contribution all TIJA’s Business Unit to increase TIJA’s Profit Growth

Increase TiJA's Revenue Growth

v v v v v v v v v v v v v Contribution all TIJA’s Business Unit to increase TIJA’s

Revenue Growth

Maximize TIJA's asset utilities

v v v v v v v v v v v v v Contribution all TIJA’s SBU and SFU to maximize asset utilities

Budget Effisiensi

v v v v v v v v v v v v v Contribution all TIJA’s SBU and SFU to make

budget efficiency

Reduce cost of production

v v v v v Decrease in cost of SBU

Customer Customer

Increase TIJA's Customer Acquisition


Customer Acquisition (Domestic and Foreign tourism)

Create TIJA's National & Global Recognition to be the 1st integrated recreation property in south east asia

v v v v v v v v v v v v v Contribution all TIJA’s SBU and SFU to create

National & Global Recognition as the 1st integrated recreation property in south east asia

Increase TIJA's Brand Equity

v v v v v v v v v v v v v Contribution all TIJA’s SBU and SFU to increase

TIJA's Brand Equity

Increase TIJA's Customer retention


increase Customer retention

increase TIJA's trust & customer satisfaction


trust & customer satisfaction

Internal Business Process

Internal Business Process

Create TIJA's Product & Service Development


TIJA’s

Product & Service Development

Create TIJA's Strategic Cooperataion


Strategic Cooperation

Create TIJA's Internationalization


Internationalization

Create TIJA's Operational Excellence


Operational Excellence

Create TIJA's Community Development


Community Development

Create TIJA's R&D


R&D

Create Innovation

v v v v v v v v v v v v v Number of new products in each segment

Number of renovated products in each segment

Learning & Growth

Learning & Growth

Create TIJA's knowledge Management System

v v v v v v v v v v v v v Create knowledge Management system each SBU & SFU

Create Technology Development for TIJA

v v v v v v v v v v v v v Create Technology Development for each SBU and SFU

Implement GCG

v v v v v v v v v v v v v Implement GCG

Create Human Resource Information System

v v v v v v v v v v v v v Create Human Resource Information System

Career Path v v v v v v v v v v v v v Career Path Opportunities

After we align both corporate and all segment in TIJA’s Business.

Mixed Consumption strategy can optimize the profit model. Mixed consumption is based on the verification of themes. Different themes are unified under a harmonious environment while not mechanically duplicate each other. Therefore, visitors would like to experience and buy different commodities. Ticket sales are not the main and only way of making profit any more. Other services and commodities can bring more profit. What is more, the industrial chain of theme park is extended. The running of theme park is not the only way of doing business. Hotels, transportation, food and beverages can also provide great business opportunities.

The high quality of products and services strategy is developed based on the resource-based view. The high quality of products and services is only related to TIJA itself. High quality of products and services gives TIJA strong competition advantages in the industry.

Cooperation strategy is developed based on the strategic conflict view. If TIJA jusst purchases public facilities by itself like other theme parks do, it will cost much. So it is a wise strategy to cooperate with other companies to get win-win.

Recommendation :

Strategies

• Use product development to renovate and build new attractions in order to attract an older target market.

• Use market development to build a new theme park which will be more accessible to the North East area.

In the next three years TIJA should..

• Build an indoor theme Park and Resort. • Improve advertising to promote entertainment which target a more mature audience.• Remodel and build new attractions in every Park and Resorts to stay appealing to our

customers.

In the Next Year TIJA’s Should

Retention Program/ Loyalty ProgramBranding investmentRe-structure online/Digital media

Improvements of mascot designs

The appearance of TIJA’s mascot is not attractive and appealing enough to children. We suggest holding competitions to let the public redesign the current whole series of mascots, keeping the original features of the mascot. After selecting a certain number of artworks by the Park, the public can vote for their favourite design through the website of TIJA or social networking

Retention Program/ Loyalty Program

Branding Investment

Re-structure online/Digital media

Improvements of mascot designs Improvements of merchandise Development of smartphone

applications

Other Services 3 Languages Services : English,

Chinese, Indonesia language Cooperation

Increasing Profit and saving costPromotion different promoting

campaigns in different areasExpanding market

Government Industry Support Support : Infrastructure &

Transportation System

websites like Facebook. The highest votes would be selected as the new appearance of the mascots.

In special occasions, competitions can be held also to design outfits for the mascots.The remaking and outfit designing for the mascots can make them more attractive tovisitors. As the designs are selected by the public, they appeal to the public more. Thiscould leave a deeper impression of the Park and give the Park a brand new image.

Improvements of merchandise (2011/2012 and 2012/2013)

From the result of our survey9, most of the interviewees think that the appearance and packaging of merchandise of TIJA are not attractive enough, which diminishes their desire to purchase. To boost the sales of it, the design of TIJA’s mascot and packaging of the merchandise should be improved. The diversity of merchandise should also increase. This makes the merchandise more appealing to visitors, and hence increases the sales and merchandise income.

Development of smartphone applications

Many smartphone applications are created for the sake of convenience to users. TIJA can include different elements:

General informationThis includes a park map, regular updates of the information on rides, shops andrestaurants. The installation of the park map can reduce the use of actual park map leaflets, which is environmentally friendly.

Interactive functions and information

With the use of the QR code system, QR codes linked to the information of TIJA’s product or service can be added next to their names in the Park. Users can learn more about the product or service through their smartphones. In addition, the applications can provide a platform for visitors to share their experiences with one another and with TIJA. Visitors can then know the others’ opinions of different rides, while the Park can gather criticisms and carry out improvements.

Language

All the handbooks and sign stands are written in both English, Chines and Indonesia.

Most employees are local people. They are not only excellent performers but also master Chinese, Cantonese and English. They are able to guide visitors from the entire world, especially those from China who are not familiar with Disneyland.

Promotion

Hong Kong Disneyland planners keep on consolidating operations. The Hong Kong Disneyland planners have a clear marketing strategy since the beginning. There are three major consumption groups – Hong Kong residents, visitors from mainland China and South East Asia. In order to attract their target visitors, Disneyland not only offers vari-ous kinds of service in the park but also different promoting campaigns in different areas.

Advertisement

Hong Kong Disneyland has complete and long-term plans of every project and activity. They also pay great attention on advertising. Hong Kong is well known of its developed entertaining industry. Disneyland takes the advantage of mass media and different cele-brations to market the fascinating Mickey Mouse.

Expanding market

TIJA tried to expand their market to countries in Sout East Asia Area,

Government & Others industry support Government & Others industry to support recreation industry like hotel industry to Create High Quality infrastructure & Transportation system.

Conclusion

To sustain its future growth and development, enhance the business competitiveness and improve the financial performance of TIJA, so as to earn more revenue and increase its attractiveness and reputation. After implementing the measures, we assume that there will be a 30% growth in revenue, compared with the previous year, there is a 4% increase in the revenue.

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business case analysis - tija company

Business

tija tija

pillar yang harus

bagaiman tija harus

pillars tija strategic

recreation business

tujuan yang ingin

recreation industry

best recreation