Strategic Analysis and Optimization of Business Performance in the Company in Indonesia

PT. XYZ, a key player in Indonesia's agribusiness sector, is at the forefront of revolutionizing the agricultural landscape through innovative approaches and cutting-edge technology. However, the company faces significant challenges in optimizing its profitability and scaling operations within its Output Division. These challenges revolve around two primary objectives: increasing sales transaction volumes and improving profitability margins to sustain long-term growth and competitiveness. This study employs a comprehensive approach that integrates internal and external analyses, including SWOT, PESTEL, and competitor evaluations, to identify key strategic levers. These analyses reveal critical inefficiencies in the market, gaps in customer engagement, and operational bottlenecks that hinder the company’s growth. By addressing these issues, PT. XYZ can unlock its full potential and leverage opportunities within Indonesia’s rapidly evolving agribusiness sector. Key findings of this research highlight the need for dynamic pricing mechanisms, enhanced operational cost efficiency, and a focus on regional market expansion. Implementing ERP systems for supply chain integration is a cornerstone recommendation to streamline processes, reduce costs, and improve decision-making. Tailored customer segmentation strategies and establishing strategic partnerships are proposed to deepen market penetration and foster customer loyalty. The study further emphasizes the importance of aligning operational capabilities with market demands to maintain a competitive edge. By adopting these strategies, PT. XYZ can position itself as a leader in the industry, setting a benchmark for sustainable and scalable business practices. This research contributes to the strategic management literature by presenting actionable frameworks that balance short-term profitability with long-term scalability. The insights derived from this study are not only applicable to PT. XYZ also provides valuable guidance for practitioners and policymakers aiming to drive innovation, sustainability, and efficiency within emerging agri-tech ecosystems. Furthermore, the findings underscore the critical role of technology-driven solutions and adaptive strategies in addressing the complex challenges faced by modern agribusiness enterprises.

Introduction

Indonesia’s agricultural sector is a cornerstone of the national economy, contributing approximately 12% to the GDP and providing employment for nearly 29% of the population (World Bank, 2022a, 2022b). This sector underpins food security and sustains rural livelihoods, pivotal in the nation’s socio-economic stability. Despite its significance, Indonesia’s agriculture faces numerous systemic challenges that hinder its potential. Fragmented supply chains, inconsistent pricing mechanisms, and a lack of technological adoption are persistent barriers that reduce efficiency and limit access to broader markets. These issues are further exacerbated by a growing population, which places increasing pressure on the sector to produce and distribute food more effectively.

The global trend of integrating technology into agriculture, or agritech, has created significant opportunities to modernize traditional practices. In Indonesia, agritech startups have begun addressing inefficiencies by introducing innovative platforms that connect stakeholders, streamline logistics, and improve market access. One such player is PT. XYZ is an agritech company established in 2021 to revolutionize the Indonesian agricultural landscape. PT. XYZ operates across two primary divisions: Input, which provides agricultural resources such as fertilizers and seeds, and Output, which facilitates the sale and distribution of agricultural products. The company aims to bridge the gap between farmers and end-consumers by leveraging technology to create efficient, transparent, and scalable supply chains.

While PT. XYZ has made significant strides in the Input Division, but the Output Division faces pressing challenges threatening its long-term sustainability. Limited brand recognition, an inadequate product portfolio, and inconsistent pricing strategies have contributed to suboptimal sales volumes and profitability margins. Moreover, external factors such as volatile commodity prices, logistical challenges, and competition from established players further complicate the division’s operations. These issues highlight the need for a comprehensive strategy to address internal inefficiencies while adapting to external market dynamics.

The Output Division’s challenges are emblematic of broader issues within Indonesia’s agribusiness sector. Customers increasingly demand high-quality, sustainably sourced products delivered efficiently and affordably. Meeting these demands requires operational excellence and innovative approaches to pricing, marketing, and customer engagement. For PT. XYZ, addressing these challenges is critical to maintaining its competitive edge and realizing its growth ambitions.

This study is driven by the need to identify actionable solutions for optimizing the performance of PT. XYZ’s Output Division. By leveraging internal and external analytical frameworks, including SWOT and PESTEL analyses, the research aims to uncover strategic opportunities to enhance profitability, increase transaction volumes, and scale operations sustainably. These strategies will improve operational efficiency, strengthen customer relationships, and expand into high-potential markets.

The significance of this research extends beyond PT. XYZ offers valuable insights into the broader agritech ecosystem in Indonesia. The study highlights how technology-driven solutions and adaptive business strategies can address persistent challenges in dynamic and resource-constrained environments, by aligning its operational capabilities with evolving market demands, PT. XYZ can position itself as a leader in Indonesia’s agribusiness sector, setting a benchmark for innovation and sustainability.

The findings from this research are expected to serve as a roadmap for PT. XYZ to enhance its Output Division’s performance while contributing to the development of Indonesia’s agritech sector. Through a systematic analysis of internal processes and external market dynamics, the study identifies key priorities that must be addressed to achieve short-term operational goals and long-term strategic growth.

Literature Review

Business Strategy

Business strategy plays a fundamental role in guiding organizations toward long-term growth and competitive positioning. At its core, it involves the formulation of plans and actions to achieve organizational goals within dynamic market environments. According to Jenkins and Williamson (2015), a well-crafted business strategy provides a roadmap for resource allocation, risk mitigation, and capitalizing on opportunities. Over the years, the concept has evolved to include frameworks such as Porter’s Five Forces, which evaluates industry competitiveness through supplier and buyer power, the threat of substitutes, and potential new entrants (Bruijl, 2018). Additionally, SWOT analysis is widely used to assess internal strengths and weaknesses in tandem with external opportunities and threats, offering actionable insights for strategic planning.

Profitability and Growth

The Resource-Based View (RBV) emphasizes the importance of unique internal resources and capabilities in achieving sustained competitive advantage (Barney, 1991). Coupled with the Dynamic Capabilities theory, it underscores the need for adaptability to market changes and leveraging existing resources to drive profitability and growth. Steffenset al. (2009) highlight how profitability can be a precursor to growth, with high-performing firms reinvesting profits to capture market opportunities.

Pricing Strategies

Pricing strategy is a critical aspect of business operations, directly influencing revenue generation and market positioning. Dynamic pricing, defined as the real-time adjustment of prices based on demand and supply conditions, has been recognized for its effectiveness in maximizing profitability in competitive markets (Maglaras & Meissner, 2006). Furthermore, value-based pricing, which prioritizes customer-perceived value over cost-based calculations, enables businesses to align their pricing strategies with customer expectations, fostering loyalty and competitive differentiation.

Segmentation, Targeting, and Positioning (STP)

STP is foundational to developing marketing and business strategies that resonate with specific market segments. It involves dividing the market based on demographic, psychographic, or geographic factors, selecting the most viable segments, and positioning products or services to meet their unique needs. Through effective STP, companies can refine their pricing strategies and market communication, creating stronger alignment with customer preferences (Kotler & Keller, 2016).

Porter’s Generic Strategies

Porter’s Generic Strategies provide a framework for achieving competitive advantage through cost leadership, differentiation, or focus strategies. Each approach enables organizations to position themselves uniquely in the market. Cost leadership focuses on operational efficiency to deliver the lowest costs, while differentiation emphasizes unique value propositions. The focus strategy targets niche markets, allowing firms to cater to specific customer segments with precision (Porter, 1985).

External Analysis

External analysis involves evaluating factors outside the organization that influence its performance. The PESTEL framework, which considers Political, Economic, Social, Technological, Environmental, and Legal factors, is a widely recognized tool. By analyzing these dimensions, organizations can identify opportunities and threats within their macroenvironment (Gupta, 2013). For instance, economic factors such as inflation and exchange rates can significantly affect pricing strategies and profitability, while technological advancements open new avenues for innovation and efficiency.

Porter’s Five Forces is another tool often employed for external analysis. This framework examines industry competitiveness by assessing the bargaining power of buyers and suppliers, the threat of new entrants, and the potential impact of substitute products. By understanding these dynamics, firms can better position themselves to mitigate risks and exploit opportunities in their operating environment.

Internal Analysis

Internal analysis focuses on understanding the organization’s resources, capabilities, and operational processes. Tools such as Value Chain Analysis help organizations identify areas where they can create value or achieve cost efficiencies (Porter, 1985). The Resource-Based View (RBV) emphasizes that unique internal resources, such as proprietary technology, skilled human capital, and strong brand equity, are critical for achieving competitive advantage (Barney, 1991). Dynamic Capabilities theory further complements internal analysis by highlighting the importance of organizational agility in adapting to changing market conditions. Firms that can reconfigure their resources and capabilities to meet new challenges are better positioned to maintain their competitive edge (Teece, 2007).

SWOT Analysis

SWOT analysis is an integrative framework that combines insights from both external and internal analyses. It systematically identifies the organization’s Strengths, Weaknesses, Opportunities, and Threats to inform strategic decision-making. For PT. XYZ, strengths like direct sourcing from farmers and robust technological infrastructure can be leveraged to address weaknesses like limited product variety and low brand recognition. Similarly, opportunities such as market expansion and consumer trends favouring sustainable products can help mitigate threats from the competition and commodity price volatility.

Method

This research was designed using a qualitative approach with a case study methodology, focusing on understanding PT. XYZ’s strategic challenges and opportunities within its Output Division. This approach aligns with Merriam and Tisdell’s (2016) definition of a qualitative case study as an in-depth analysis of a bounded system, making it suitable for exploring PT. XYZ’s operational and strategic context. The study aimed to investigate internal operational inefficiencies, external market dynamics, and actionable strategies to improve profitability and scalability in the Output Division.

Semi-structured interviews were conducted with key stakeholders within PT to gather detailed insights. XYZ, including senior management and operational staff directly involved in the Output Division. Participants included the Head of Operations, Marketing Director, and regional managers, ensuring that the study captured diverse perspectives. This approach aligns with expert sampling, as Kumar (2011) described, targeting individuals with substantial knowledge and experience relevant to the research objectives. The interview questions were designed to explore participants’ experiences, perceptions, and strategies related to operational processes, market dynamics, and customer engagement.

In addition to primary data, secondary data were collected from PT. XYZ’s internal reports, including financial statements, operational performance data, and market analyses. Publicly available industry reports and competitor analyses were also reviewed to provide a broader context for understanding PT. XYZ’s position within the agribusiness sector. These secondary sources were critical for triangulating the primary data and ensuring the reliability of the findings.

Result and Discussion

The interviews with six key stakeholders from PT. XYZ’s Output Division, including the Head of Operations, Marketing Director, and regional managers, revealed three main themes: operational efficiency, customer engagement, and market expansion. These interviews and analysis of internal company reports, and external market research provide a foundation for identifying actionable solutions. Transcriptions of the interviews were coded and analyzed to uncover recurring themes and trends, summarizing respondents’ perspectives, challenges, and strategic priorities.

For operational efficiency, respondents highlighted significant challenges in supply chain coordination and resource allocation. The Head of Operations stated, “Our supply chain currently faces inefficiencies due to delays in logistics and the lack of integrated systems.” This was echoed by the Marketing Director, who mentioned, “The absence of a real-time inventory tracking system limits our ability to respond dynamically to market demands.” Internal reports revealed that a substantial portion of operational costs is attributed to intermediary layers, further reducing profitability. Respondents emphasized the need for implementing an ERP system to streamline processes, enhance tracking capabilities, and optimize resource allocation.

In the context of customer engagement, the findings indicate that PT. XYZ lacks a robust segmentation strategy, leading to generalized approaches that fail to address the diverse needs of its customer base. The Marketing Director remarked, “We have been treating all customers the same, which limits our ability to build long-term relationships with specific segments.” Regional managers added that inconsistent delivery schedules and pricing strategies contribute to low customer satisfaction. One respondent noted, “Customers in urban areas prioritize timely delivery, while those in rural regions are more sensitive to pricing.” Survey data further revealed that customer loyalty is strongly influenced by the quality of service and price consistency, underscoring the need for tailored engagement strategies.

Regarding market expansion, respondents identified significant opportunities in urban regions like Jakarta, where demand for high-quality and sustainably sourced agricultural products is on the rise. The Marketing Director highlighted, “Expanding into urban markets requires a localized approach, considering the unique preferences and regulatory requirements of each region.” Regional managers emphasized the importance of understanding competitive dynamics and consumer behavior before entering new markets. Head of Growth stated, “Urban customers prioritize convenience and product quality, which means we need to invest in branding and premium offerings to stand out.” Market research further supported these observations, identifying Jakarta as a high-growth market with increasing consumer awareness of sustainability.

Internal Analysis

PT. XYZ demonstrates significant internal strengths, particularly in its direct relationships with local farmers. These relationships ensure consistent product quality and supply stability while providing a cost advantage. This approach aligns with Porter’s Value Chain Analysis (1985), which highlights the importance of optimizing primary activities like inbound logistics to gain a competitive advantage. By maintaining transparency and direct sourcing, PT. XYZ has established itself as a reliable partner for its customers.

However, the company faces critical weaknesses in its reliance on manual processes, which reduce operational efficiency. The lack of an integrated ERP system limits the company’s ability to manage inventory effectively and hinders real-time coordination across its operations. These inefficiencies contribute to delays in delivery and increased operational costs, negatively impacting customer satisfaction.

Another key limitation is the company’s narrow product portfolio. While PT. XYZ focuses primarily on fresh agricultural products, this lack of diversification restricts its ability to cater to high-margin markets, such as processed or premium agricultural products. Expanding the product portfolio could enable the company to capture additional market segments and increase its profitability.

To address these challenges, PT. XYZ needs to invest in technological solutions, such as an ERP system, to improve operational efficiency and data integration. Additionally, developing a broader range of products, including high-margin items, would enhance the company’s competitiveness and appeal to a wider customer base.

External Analysis

An external analysis of PT. XYZ’s business environment using the PESTEL framework reveals various opportunities and threats. Politically, the Indonesian government’s initiatives to promote agricultural innovation and sustainability align with PT. XYZ’s strategic goals. Policies aimed at reducing food waste and increasing technological adoption provide a favorable environment for the company’s growth. However, fluctuating trade policies pose potential risks to supply chain stability.

Economically, increasing urbanization and higher disposable incomes in metropolitan areas create opportunities for PT. XYZ to target premium market segments. Urban consumers are showing a growing preference for high-quality, sustainably sourced agricultural products, aligning with the company’s strengths in direct sourcing and quality assurance. However, the presence of efficient local competitors presents a challenge that PT. XYZ must address this through differentiation.

Social trends also present significant opportunities, as consumers increasingly prioritize sustainability and ethical sourcing. PT. XYZ’s existing practices position it well to capitalize on these preferences, but the company needs to enhance its marketing efforts to communicate its value proposition effectively. At the same time, environmental concerns, particularly those related to logistics and carbon emissions, require PT. XYZ to adopt greener supply chain practices to maintain its competitive positioning.

Technological gaps remain a critical external challenge. The absence of advanced logistics systems limits PT. XYZ’s ability to deliver efficiently, particularly in urban areas where reliability is critical. Investing in digital tools such as route optimization software and e-commerce platforms could help the company overcome these limitations and improve its operational efficiency.

Legal factors also play a crucial role, as compliance with food safety regulations and agricultural standards is essential for market access. Navigating these regulations requires robust internal processes and continuous monitoring. Investing in technology to ensure traceability and compliance will not only reduce risks but also reinforce PT. XYZ’s reputation as a trusted and responsible player in the agribusiness sector.

SWOT Analysis

The SWOT analysis synthesizes the insights from internal and external evaluations, providing a comprehensive view of PT. XYZ’s strategic position. The company’s Strengths include its direct sourcing model, which ensures transparency, cost control, and high product quality. These strengths align with Barney’s Resource-Based View (1991), which emphasizes leveraging unique capabilities to sustain competitive advantage.

However, PT. XYZ’s Weaknesses are evident in its operational inefficiencies and limited product portfolio. The lack of technological infrastructure, particularly an ERP system, restricts the company’s ability to optimize its supply chain and adapt dynamically to market demands. Expanding its product range and investing in process automation are critical steps to addressing these weaknesses.

The company’s Opportunities include tapping into urban markets like Jakarta, where demand for premium agricultural products is rising. Government incentives for agricultural innovation also offer potential funding and collaboration opportunities. These factors align well with PT. XYZ’s strategic goals and provide clear pathways for growth.

Despite these opportunities, PT. XYZ faces significant Threats, including intense competition from established agritech players and fluctuating commodity prices. Porter’s Five Forces (1980) highlights the risks posed by high buyer power and competitive intensity. To mitigate these threats, PT. XYZ must differentiate itself through sustainability initiatives, tailored customer engagement strategies, and a strong emphasis on product quality.

Business Strategy Development for PT. XYZ

PT. XYZ faces critical challenges in optimizing its Output Division’s performance, particularly in addressing operational inefficiencies, increasing transaction volumes, and improving profitability margins. Based on the internal and external analyses, the following business strategies are proposed to enhance PT. XYZ’s competitiveness and ensure long-term sustainability in Indonesia’s agribusiness sector.

Strategy to Increase Transaction Volume

To increase transaction volume, PT. XYZ focuses on customer segmentation by addressing the unique needs of its key customer groups: small-scale restaurants, medium-to-large restaurants, vegetable stall vendors, and mobile greengrocers. Each segment requires specific strategies tailored to their operational and purchasing behaviors to maximize sales growth.

For small-scale restaurants, PT. XYZ implements volume-based discounts and scheduled delivery systems to encourage more frequent purchases. By offering lower unit prices for bulk orders, small restaurants can purchase in larger quantities without exceeding their budgets. Scheduled deliveries provide reliability, allowing businesses to plan their inventory effectively and reduce last-minute sourcing challenges.

For medium-to-large restaurants, PT. XYZ offers fixed supply contracts with incentives for bulk purchasing. These contracts guarantee stable prices and consistent supply, addressing the operational needs of multi-branch businesses. By providing flexibility in delivery options and payment terms, PT. XYZ can build strong, long-term partnerships with this segment.

Vegetable stall vendors, who operate in competitive price-driven environments, benefit from bulk purchase schemes and flexible payment options. Offering discounts for minimum order quantities (MOQ) encourages larger purchases, while short-term credit arrangements enable vendors to maintain consistent inventory without immediate financial strain.

For mobile greengrocers, PT. XYZ introduces bundled product offers and loyalty programs to incentivize frequent purchases. Bundling high-demand products at discounted rates simplifies purchasing decisions for mobile vendors while increasing order value. In addition, introducing a user-friendly mobile ordering platform enhances accessibility and convenience, ensuring smooth transactions.

By targeting each customer segment with tailored strategies, PT. XYZ can increase transaction volumes, improve customer satisfaction, and strengthen its competitive position in the agribusiness market.

Profitability Optimization Strategies

To optimize profitability, PT. XYZ combines cost-efficiency measures with strategies to enhance revenue streams. One key initiative is the adoption of dynamic pricing mechanisms, which allow the company to adjust prices in response to market conditions such as demand fluctuations, raw material costs, and competitor pricing. Real-time data analysis, supported by ERP systems, ensures that PT. XYZ can maximize profit margins while maintaining competitiveness.

Another significant strategy involves direct sourcing partnerships with farmers. By eliminating intermediaries, PT. XYZ reduces procurement costs while maintaining control over product quality. These direct relationships also create opportunities for bulk purchasing, allowing the company to negotiate favorable pricing and secure a steady supply of raw materials.

To further enhance profitability, PT. XYZ prioritizes inventory optimization. Implementing ERP-based inventory management systems enables real-time stock tracking and minimizes waste. By identifying and prioritizing high-margin SKUs, the company can allocate resources efficiently, ensuring that profitable products receive greater focus and availability.

Operational cost reductions are achieved through logistics optimization. The use of route optimization software reduces fuel expenses and delivery times, increasing efficiency in outbound logistics. Additionally, warehouse automation improves sorting, storage, and dispatch processes, lowering labor costs while enhancing productivity.

Finally, product diversification into premium items, such as organic and processed agricultural products, presents significant opportunities to increase revenue. By catering to urban markets that demand high-quality, value-added products, PT. XYZ can improve profit margins and expand its customer base.

Cost Focus Strategy Based on Porter’s Generic Strategies

PT. XYZ adopts Cost Focus Strategy as proposed by Porter (1985), targeting price-sensitive market segments while maintaining operational efficiency. This strategy is critical for serving small-scale customers such as vegetable stall vendors, mobile greengrocers, and small restaurants, where cost competitiveness is a key decision factor.

The primary driver of this strategy is supply chain optimization. By sourcing directly from farmers, PT. XYZ eliminates intermediary costs and improves procurement efficiency. This direct approach ensures consistent quality while maintaining lower operational costs, which can be passed on as savings to customers.

The integration of ERP systems into inventory and logistics management is another cornerstone of the Cost Focus Strategy. Real-time monitoring of inventory levels allows for efficient stock rotation using the FIFO (First-In, First-Out) method, minimizing spoilage and reducing wastage costs. Optimizing delivery routes using data-driven tools further lowers transportation expenses, improving profitability.

Additionally, PT. XYZ offers bundled product pricing and volume-based discounts to encourage higher purchase quantities among its core customer base. Bundling high-demand products simplifies procurement for customers while increasing order values, allowing PT. XYZ to achieve economies of scale and cost efficiencies.

By maintaining cost leadership through supply chain efficiencies, technological integration, and tailored pricing strategies, PT. XYZ can secure a competitive advantage in price-sensitive market segments. This approach ensures sustained growth while maintaining profitability.

Value-Chain Activity for the Strategy

PT. XYZ’s Value Chain Analysis identifies key activities that support its cost leadership and strategic objectives. At the Inbound Logistics stage, direct partnerships with farmers play a pivotal role in reducing procurement costs and ensuring consistent product quality. The integration of ERP systems further enhances inventory management by providing real-time data on stock levels and procurement needs.

In the Operations Stage, PT. XYZ focuses on process efficiency through automation. Implementing warehouse management systems reduces manual errors, improves sorting accuracy, and accelerates order fulfillment. Standardized quality control measures ensure consistency across all products, reinforcing PT. XYZ’s reputation as a reliable supplier.

For Outbound Logistics, PT. XYZ leverages route optimization software to minimize transportation costs and delivery times. ensuring efficient and timely deliveries, these initiatives enhance delivery reliability while reducing logistics expenses. In the Marketing and Sales Stage, PT. XYZ uses targeted strategies to engage segmented customer groups. Personalized promotions, bundled offers, and loyalty programs are designed to increase transaction volumes while improving customer retention. Digital platforms, such as mobile order applications, further streamline the sales process and enhance customer accessibility.

Finally, Supporting Activities, including technological development and supplier relationship management, strengthen the overall value chain. Continuous investments in ERP systems, route optimization tools, and digital platforms improve operational efficiency. Strong supplier relationships enable PT. XYZ to secure favorable pricing and ensure a sustainable raw material supply, supporting its long-term strategic goals.

By optimizing each stage of the value chain, PT. XYZ can reduce costs, enhance customer satisfaction, and maintain its position as a cost leader in the agribusiness sector.

Conclusion

In conclusion, the business strategies developed for PT. XYZ provides a comprehensive roadmap to address the challenges in its Output Division while ensuring long-term growth and sustainability. By implementing tailored strategies for increasing transaction volume, profitability optimization, and cost focus based on Porter’s Generic Strategies, PT. XYZ is well-positioned to strengthen its competitive advantage in the agribusiness sector. The study highlights the importance of customer segmentation and targeted initiatives, such as volume-based discounts, fixed contracts, and bundled product offerings, to address the diverse needs of its customer base and drive transaction growth. Furthermore, profitability optimization strategies, including dynamic pricing mechanisms, direct farmer partnerships, and operational efficiency improvements, enable PT. XYZ to maintain stable profit margins while navigating volatile market conditions. The Cost Focus Strategy, grounded in Porter’s framework, emphasizes the need for supply chain optimization, technological integration, and tailored pricing strategies to serve price-sensitive customer segments efficiently and cost-effectively. These approaches align with PT. XYZ’s core strengths, such as direct farmer relationships, while addressing its internal weaknesses, including technological gaps and product diversification limitations. The study also underscores the significance of value chain optimization in supporting these strategies. By enhancing inbound logistics, automating operations, optimizing outbound delivery networks, and leveraging targeted marketing campaigns, PT. XYZ can create value at every stage of its operations. These improvements not only reduce operational costs but also ensure alignment with market demands and customer expectations, thereby strengthening PT. XYZ’s market position. This research demonstrates that integrating customer-centric strategies, cost leadership, and operational efficiency can help PT. XYZ achieves both short-term performance improvements and long-term scalability. However, the successful execution of these strategies requires ongoing investment in technology, strong coordination across the supply chain, and continuous feedback from the market. By aligning its operational capabilities with evolving market dynamics and consumer preferences, PT. XYZ can establish itself as a leader in Indonesia’s agribusiness sector, delivering sustainable value to stakeholders while addressing industry challenges.

Recommendation

Based on the findings of this research, PT. XYZ is advised to prioritize the implementation of strategies aimed at optimizing the performance of its Output Division and achieving sustainable growth. First, it is essential for PT. XYZ to invest in technological integration, specifically by adopting an Enterprise Resource Planning (ERP) system. This system will address current inventory management, logistics, and supply chain operations inefficiencies. By leveraging real-time data, the ERP system can enhance decision-making, reduce operational costs, and enable dynamic pricing mechanisms to adapt to market fluctuations effectively.

Second, PT. XYZ must focus on customer engagement through targeted segmentation. By addressing the unique needs of its key customer groups—small-scale restaurants, medium-to-large restaurants, vegetable stall vendors, and mobile greengrocers—the company can implement initiatives such as volume-based discounts, bundled product offers, and loyalty programs. These tailored solutions will incentivize higher transaction volumes, improve customer satisfaction, and foster long-term relationships with various market segments.

Furthermore, PT. XYZ is advised to focus on implementing strategies that optimize its operations and support sustainable growth. One key recommendation is to pursue market expansion into high-growth regions such as Jakarta, Surabaya, and Medan. These urban markets exhibit a strong demand for high-quality and diversified agricultural products. PT. XYZ can capitalize on this trend by introducing value-added products that cater to the preferences of these markets. Collaborating with local distributors and retailers, supported by localized marketing campaigns, will enable PT. XYZ to penetrate these markets effectively while capturing higher-margin opportunities and strengthening its geographical presence.

By aligning these recommendations with its operational and strategic goals, PT. XYZ can achieve sustainable growth while positioning itself as a market leader in Indonesia’s agribusiness sector. The combination of market expansion, value-added product offerings, and business-oriented sustainability initiatives will ensure the company remains adaptable to evolving market demands and can effectively address future challenges.