ADVANCING COMPETITIVE POSITIONING IN THE PHOTOVOLTAIC MODULE MARKET WITH SYSTEM THINKING: A CASE OF PT. INDONESIA SOLAR GLOBAL FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By ZAENY AHMAD Student ID: 29321347 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG June 2024 i ABSTRACT ADVANCING COMPETITIVE POSITIONING IN THE PHOTOVOLTAIC MODULE MARKET WITH SYSTEM THINKING: A CASE OF PT. INDONESIA SOLAR GLOBAL By Zaeny Ahmad Student ID: 29321347 (Master of Business Administration Program) This study explores the strategic positioning of PT. Indonesia Solar Global (ISG) in the competitive Indonesian photovoltaic module market. The study is premised on the critical need for local PV module manufacturers like ISG to carve a niche for themselves in a market that is increasingly dominated by imported products. The research begins by painting a broad picture of the global PV module market's explosive growth, driven by advancements in PV technology, political backing, and a collective shift towards sustainable energy solutions. It delves into the specific context of Indonesia, where the blend of abundant solar resources and governmental incentives for renewable energy paints a favourable yet challenging landscape for local manufacturers like ISG. Through a system thinking approach, the study aims to understand the complex market dynamics and identify leverage points for enhancing the company's competitiveness. The study employs qualitative methodologies by utilizing Causal Loop Diagrams (CLDs) to visually represent the complex interconnections within the PV module market. Key findings from the study reveal that system thinking provides a powerful lens through which the challenges of competing against imported PV modules can be comprehensively understood. It has led to the emergence of several competitive strategies aimed at enhancing ISG's market share and potential operational improvement. These strategies span across leveraging lean manufacturing principles, establishing strategic partnerships, engaging in policy advocacy, and diversifying the customer base. The findings contribute to the discourse on fostering local industry resilience in the global renewable energy landscape. Keywords: Photovoltaic modules, Systems thinking, Competitive positioning, Market dynamics, Renewable energy, Indonesia. ii ABSTRAK MENINGKATKAN POSISI KOMPETITIF DI PASAR MODUL FOTOVOLTAIK DENGAN PEMIKIRAN SISTEM: STUDI KASUS PT. INDONESIA SOLAR GLOBAL Oleh Zaeny Ahmad Student ID: 29321347 (Program Studi Magister Administrasi Bisnis) Studi ini mengeksplorasi posisi strategis PT. Indonesia Solar Global (ISG) dalam pasar modul fotovoltaik yang kompetitif di Indonesia. Studi ini didasarkan pada kebutuhan kritis bagi produsen modul PV lokal seperti ISG untuk menciptakan ceruk mereka sendiri di pasar yang semakin didominasi oleh produk impor. Penelitian ini dimulai dengan menggambarkan gambaran luas dari pertumbuhan pasar modul PV global yang pesat, didorong oleh kemajuan teknologi PV, dukungan politik, dan pergeseran kolektif menuju solusi energi berkelanjutan. Ini menggali konteks spesifik Indonesia, di mana campuran sumber daya surya yang melimpah dan insentif pemerintah untuk energi terbarukan menggambarkan lanskap yang menguntungkan namun menantang bagi produsen lokal seperti ISG. Melalui pendekatan pemikiran sistem, studi ini bertujuan untuk memahami dinamika pasar yang kompleks dan mengidentifikasi titik leverage untuk meningkatkan daya saing perusahaan. Studi ini menggunakan metodologi kualitatif dengan memanfaatkan Diagram Lingkaran Sebab Akibat (CLDs) untuk secara visual mewakili interkoneksi yang kompleks dalam pasar modul PV. Temuan utama dari studi ini mengungkapkan bahwa pemikiran sistem menyediakan lensa yang kuat di mana tantangan bersaing dengan modul PV impor dapat dipahami secara komprehensif. Ini telah mengarah pada munculnya beberapa strategi kompetitif yang bertujuan untuk meningkatkan pangsa pasar ISG dan potensi peningkatan operasional. Strategi-strategi ini mencakup pemanfaatan prinsip manufaktur ramping, pembentukan kemitraan strategis, keterlibatan dalam advokasi kebijakan, dan diversifikasi basis pelanggan. Temuan ini berkontribusi pada diskusi tentang memupuk ketahanan industri lokal dalam lanskap energi terbarukan global. Kata kunci: Modul fotovoltaik, Pemikiran sistem, Posisi kompetitif, Dinamika pasar, Energi terbarukan, Indonesia. DECLARATION OF NON-PTAGIARISM Plagiarism is: Piagiarisrn is presenting sonleone eise's work or ideas as your own, with or without their consent, by incorporating it into your work without ftrll acknowledgement. All published and unpublished materiat, whether in manuscript, printed cr eiectronic form, is covered under this deiinition. Plagiarism may be intentional or reckless, or unintentional. Under the reguiations for examinations, intentional or reckless plagiarism is a disciplinary offence. foxford, 201 9] Plagiarism is considered as the act of dishonesty and a breach of academic ethics in which strongly against the School's poiicy and regulation. I declare that materials presented in this Final Project are my own work and do not involve plagiarisn-r. Should I do plagiarism in this Final Project, hereby I am w-illing to accept any consequences determined by the School. Date: 22 March 2024 Name: Zaeny Ahmad Student lD:29321347 Signed iv ADVANCING COMPETITIVE POSITIONING IN THE PHOTOVOLTAIC MODULE MARKET WITH SYSTE M THINKING: A CASE OF PT. INDONESIA SOLAR GLOBAL By Zaeny Ahmad Student ID: 29321347 Master of Business Administration Program Institut Teknologi Bandung Approved Supervisor (Prof. Dr. Ir. Utomo Sarjono Putro, M Eng.) Date: May 4, 2024 v FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceed upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Ahmad, Z. (2024): Advancing Competitive Positioning in the Photovoltaic Module Market with System Thinking: A Case of PT. Indonesia Solar Global, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vi This final project is dedicated to my beloved mother, family, co-workers, and colleagues who always support me. vii ACKNOWLEDGEMENTS Praise to the Allah SWT for the grace and blessing that have been given to author for the healthiness, time and faithfulness in finishing final project which is one of the requirements for completing Master of Business Administration Program at Institut Teknologi Bandung. It is expected and hoped that the result of this project can be provide valuable and useful information for PT. Indonesia Solar Global’s effort in increasing the market competitiveness especially when competing with imported products. In addition, I hope that this final project could bring benefit to the company’s success in future endeavors. With this valuable opportunity, the author would like to state gratitude to: 1.