Market Development Strategy For Pt A From The Side Of Capabilities And Potential Customers

PT A is a small and medium enterprise (SME) engaged in manufacturing of dies, precision parts, checking fixtures, machinery, and molding for automotive production. In augmenting its sales, PT A wants to widen the market to include non-automotive industry because their products can be used in other industries as well. Unfortunately, the owner did not know the potential of the products. The present study helps PT A in understanding the capabilities and potentials of customers in the non-automotive market as well as to create strategies for market development. The data were obtained through a series of structured interviews with employees of PT A and non-automotive companies in Delta Silicon Cikarang to reveal their needs and the ability of PT A to meet the customers’ needs. The results of structured interviews were analyzed using several tools to view the capabilities using Core Competence Analysis and to examine the potential use of Customer Potential Analysis. The final result is determined by TOWS Matrix. From the analysis, several strategies for market development emerged: (1) reposition products by promoting cheap products and fast production, (2) expand market channel into the plastics, base metal products, and electronics industries, (3) revise and improve capability in production processes to enter new markets, (4) add a new line of current products, which is an advanced process after manufacturing dies and molds. Keywords—Core Competence Analysis, Customer Potential Analysis, Market Development Strategy, Non-Automotive Market, Small and Medium Enterprise (SME)