65 Chapter IV Findings: Business Solution Chapter IV defines what are the solutions of the business issue that has elaborated on the previous chapter. The whole chapter will be discussing analysis starting from internal analysis, external analysis and formulated the marketing strategy using frameworks that has discussed on the Chapter III. IV.1 Analysis The section will explain the analysis that is needed to determine what new marketing strategies are needed by PT Rindu Makmur. It consists of internal analysis to analyze what will be the strength and weakness of the company. The external analysis will determine what are the external factors that could become an opportunity and the threat of the company. IV.1.1 Internal Analysis According to data and information collected from interview and FGD, the next step is determining the internal analysis. Analyzing company’s internal environment is defined as strategic process which examine the areas of marketing, process, human resources and financial capability. The analysis is purposed to identify a few strengths and weaknesses of the company’s internal business processes and resources. IV.1.1.1 VRIO Analysis The VRIO analysis is a suitable framework to assess company resources and capabilities, as it explains and predicts whether the company’s resources and 66 capability are categorized in which level of advantage. According to Rothaermel, stated that resources are classified into tangible and intangible form. Tangible resources have physical attributes and are visible, meanwhile intangible resources have no physical attributes and are invisible. Developed by Barney (1991), VRIO stands for Value, Rarity, Imitability, and Organization. For a resource or capability to provide a sustainable advantage, it must meet all four criteria, making VRIO a valuable model for internal analysis in strategy development. In this case, VRIO analysis will analyse the internal resource, is the resource categorized as competitive parity, temporary competitive advantage, or sustainable competitive advantage. The resource is categorized as tangible resource and intangible resource. Tangible resources are physical and measurable assets owned by a company that can be used to create value or gain a competitive advantage. These include financial assets, physical assets, and organizational infrastructure. Intangible resources are non-physical assets that often provide a competitive advantage through their uniqueness and inimitability. These resources are harder to quantify but are critical to long-term success and differentiation. To build VRIO findings and resources is created upon interviews, company internal data, and author analysis as explained on the table below: Table IV.1 Findings of VRIO Resources Resource Findings Tangible 67 Physical Assets PT Rindu Makmur have one office in Jakarta and one Warehouse in Jakarta Number of Employee Have 4 sales engineers which handle nickel mining segment and 10 XRF after sales technician. Marketing Network PT Rindu Makmur is open to all tender partners to join the tender for the customer that has not yet penetrated by PT Rindu Makmur. Laboratory Demo PT Rindu Makmur has a laboratory demo to demonstrate to customers how to use the instrument. Product of XRF The XRF with the features of 10 sample changers, 1,5M cps detector and 2mA current. Intangible Brand reputation PT Rindu Makmur is the company that first marketed Vasilon XRF in 1997, so it is quite well known in the eyes of customers. Relationship with stakeholders- The customer has good relationship 68 customer with all nickel mining customers in Indonesia, currently PT Rindu Makmur has more than 200 nickel mining customers with high satisfactory index. Relationship with stakeholders- supplier As an exclusive distributor for Vasilon XRF, the company has a good relationship with all local material suppliers such as computers, stabilizer, UPS. Relationship with community The company establish good communication with APNI (Asosiasi Pengusaha Nickel Indonesia) and IAGI (Ikatan Ahli Geologi Indonesia). Human Resource Competence 100% technician are graduated from bachelor’s degree of electrical engineers and 70% of the technician have completed XRF training. 100% Sales engineers have completed XRF basic sales training. After determining of the company resource shown on table IV.1, based on VRIO Framework by (Grant R, 2014), the author will give a code “Y” or “N”, where “Y” represents that the resource has the attribute while “N” means the opposite. 69 If the resource has 4 “Y”, then the company has a Sustainable Competitive Advantage, if the resource has 2-3 “Y” then the company has temporary competitive advantage and if the “Y” is only 1 and the rest is “N” then the company has competitive parity. Table IV.2 VRIO Analysis Result Resources Valuable Rare Costly to Imitate Organize to Capture Implication Physical Assets Y N N N CP Number of Employee Y Y N N TCA Marketing Network Y N N N CP Laboratory Demo Y Y N N TCA Product of XRF Y Y N N TCA Brand reputation Y Y Y N TCA Relationship with stakeholders- customer Y N N N CP Relationship with stakeholders- supplier Y N N N TCA Relationship with community Y Y N N TCA Human Resource Competence Y Y Y Y SCA 70 According to table IV.2, it can be shown that most resources are categorized as temporary competitive advantage, even there are some resources that classified as competitive parity. For tangible resources, there are 3 resources classified as competitive parity. In terms of physical asset, PT Rindu Makmur only have 1 office in Jakarta, it is valuable for the customer, but it is not rare since all the competitor such as Risaku, Thermal and Briket all office in Jakarta, and according to interview with one of QC Manager of nickel mining company, he said that “The competitor of Vasilon 4 has branch in Kendari, This is certainly a special attraction for mining customers, where they also stock devices, spare parts and also provide demo items to try. I have personal experience with their branch office, they could easily send the technician from Kendari to the site”. Briket has branch office in Kendari that becomes an added value to the customer, With the branch office close to the mining site, customers can directly watch and try demo XRF instrument close to their mining site, no need to go to Jakarta. Having an office in Kendari also makes customers more confident that technicians will arrive more quickly. Regarding the number of employees, PT Rindu Makmur has 4 sales engineers and 10 XRF technicians, which is valuable for customers, because the more XRF technicians there are, the more customers can visit at once if there are problems with the XRF. QC Manager from one of nickel mining company said “Personnel who are very competent in their respective fields (Sales, Engineer, Application Specialist and others). Share knowledge and experience from other users related to tool operations and analysis methods”. It is rare since Briket, Thermal and Risaku doesn’t have as many technicians and sales engineers as PT Rindu Makmur. But it is not costly to intimate, since the competitor could also recruit sales engineers and 71 technicians or even hijack sales engineer or technician from PT Rindu Makmur by offering higher salary. For marketing network, since PT Rindu Makmur is exclusive distributor of Vasilon XRF product, PT Rindu Makmur have the obligation to market the instrument itself, but sometimes there are conditions where the customer is penetrated by another supplier or tender partner but still the supplier purchase the instrument to PT Rindu Makmur. This resource is valuable, but it is not rare since all the competitors also implement the same marketing network. PT Rindu Makmur has demo lab that facilitate their customer candidate to test the instrument, this resource is valuable for customers, it is rare since only a few competitors have the demo lab, but it is not costly to imitate since the competitor could open the demo lab. According to product brochure, Vasilon 4 has big count rate on the detector, which is 1,5MCPS and the current is 2mA. Based on the finding on the competitor brochure, currently the competitor has updated their system equal to Vasilon 4. This resource is valuable for the customer, but it is not rare anymore since the competitor already update their instrument meanwhile according to FGD with product support and sales group, there’s no instrument update since the first release of Vasilon 4 in 2018. One of the source people in nickel mining laboratory stated that “Actually Vasilon 4 is more robust than their competitors, it also the fastest instrument to analyze instrument, but but as time goes by, its competitors come with various feature updates, while Vasilon 4 never comes with a feature update since the first release of Vasilon 4 product in 2018”. 72 In terms of brand reputation, PT Rindu Makmur market Vasilon 4 in 2018, first XRF that penetrate in the nickel mining market, according to FGD with product support group and sales group, at that time, Vasilon 4 is the most updated instrument among the competitors, this statement also strengthened by the interview with the source person from director of nickel mining company that purchase Vasilon 4 stated that “We purchased first Vasilon 4 in 2018 because at that time, none of their competitors specification close to Vasilon 4”.