REDEVELOPING STUDIO H BUSINESS MODEL TO ENTER COMMERCIAL MARKET AND IMPROVE OPERATIONAL EFFICIENCY FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By AFIFAH FATHARANI HIDAYAT Student ID: 29123102 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG December 2024 i ABSTRACT Redeveloping Studio H Business Model to Enter Commercial Market and Improve Operational Efficiency By Student Afifah Fatharani Hidayat Student ID: 29123102 (Master of Business Administration Program) The global commercial design market is experiencing rapid growth, fueled by evolving workspace demands and consumer preferences in the post-pandemic era. This transformation has created significant opportunities for design firms to meet the increasing demand for flexible, innovative, and sustainable commercial spaces. However, Studio H, a domestic design firm in Indonesia, faces considerable challenges in penetrating this lucrative market. While the company has established a strong reputation in residential design, its lack of experience in commercial projects, operational inefficiencies, and limited resources hinder its ability to diversify its project portfolio and meet the complex demands of commercial clients. This study explores strategies for Studio H to effectively enter the commercial design market and improve its operational efficiency. The research employs a mixed-method approach, integrating qualitative interviews with Studio H stakeholders and quantitative surveys targeting client preferences and market trends. Through this approach, the study identifies critical factors influencing market penetration and operational performance. The analysis focuses on both external market opportunities and internal resource optimization, aiming to provide comprehensive insights into the challenges and opportunities Studio H faces in its bid to expand into the commercial sector. The findings highlight that Studio H’s core strength lies in its adaptability and proven expertise in residential design, which can be leveraged for commercial ventures. However, significant barriers must be addressed to enable successful market entry. Key challenges include the absence of a commercial project portfolio, reliance on manual processes for project and resource management, and inefficiencies in material procurement. Additionally, Studio H’s limited team capacity and lack of experience with the complexities of large-scale commercial design further impede its competitiveness. To overcome these challenges, the study recommends a multi-faceted strategy. Studio H should establish strategic partnerships with experienced commercial design firms to gain insights and mentorship while expanding its capabilities. Upskilling the existing team through training programs focused on commercial design requirements will also enhance competitiveness. The adoption of modern project management tools and ii technologies is crucial to streamline operations, reduce inefficiencies, and improve cost management. Furthermore, Studio H should align its offerings with market demands by emphasizing innovation, sustainability, and integrated design-to-build services. A robust marketing strategy, including showcasing a competitive portfolio through digital platforms and industry events, is essential to enhance visibility and attract commercial clients. The implementation plan prioritizes immediate operational improvements, such as deploying project management software and optimizing resource allocation. Medium- term initiatives include training programs for team members and forming strategic alliances to build expertise in commercial design.