Veritas - Preliminary Stage - DBCC2019 PDF

DIPONEGORO BUSINESS CASE
COMPETITION 2019
Bringing Majapahit to You – Strategic Recommendations to
Lead Nusantara’s Logistics Industry
Team Name: Veritas

Name of Member:
- Alya Afifah Baktiar
- Jofiandy Leonata Pratama
- Raelis Wibisono
Email of the team leader : jofiandyleonata@hotmail.com

Bringing Majapahit to You: Strategic Recommendations to Lead Nusantara's Logistics Industry
Diponegoro Business Case Competition - 2019
ABSTRACT
Majapahit.co is a company specialized in courier and logistics whose quality and performance are
determined by customers. By offering superior products, excellent service, and competitive price,
Majapahit.co aims to snatch 20% of Nusantara (interchangeable with the term Indonesia) logistics
market share. To determine the best strategy for Majapahit.co, we start by analysing internal and external
condition of Majapahit.co using value chain, PESTLE, and Porter’s 5 Forces analysis before combining
them into SWOT analysis; resulting in strategic factors score 2.595/5.00, meaning that the company is
slightly below average in the industry. Then, using MECE issue tree, we come up with several
hypotheses to tackle the issues. The first strategy that we propose is creating a strategic partnership with
marketplace by utilizing some features such as API integration and tracking system. This allows
Majapahit.co to rise as the premium services of logistics with under 48 hours of delivery service. Shopee
and JD.ID are the best recommendation to do partnership with. This is also supported by increasing
logistics fleet and PLB warehouse. Next, Majapahit.co needs to improve its IT system by implementing
Database Management System, Decision Support System, and Company-Wide ERP to further enlarge
its scope. To increase brand awareness and sales, customer journey framework is used, consisting of
attraction, selection, and retention. These include #Dijamin48Jam campaign and some programs
involving customers and employees. Financial analysis of these solutions shows positive NPV
(Rp147,566,851,768), IRR exceeding company’s threshold (19.45%), and payback period for 2.5 years.
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CHAPTER 1
INTRODUCTION
Majapahit.co is a logistics and courier company in Indonesia that has been running for 4
years that aims to be the top courier express and hybrid logistics focusing on technology, excellent
services, and efficiency leadership. In order to achieve those, Majapahit provides customers with
competitive price, available and convenient solutions digitally which align with their 3 main
values, namely Superior Product, Excellent Service and Competitive Price.
In addition to that, Majapahit offers several services to the customers such as Express
Services, International courier Service, third-party to connect customers with e-commerce, and
also Logistics and Distribution Services namely dedicated courier/city courier, transportation fleet
from air, ground and sea, warehouse management, e-commerce support, and spare parts
management service.
In logistics business, the market share consists of 25% from PT. Palembang Sriwijaya; 25%
from PT. Tumasik; 30% from PT. Galuh Sundayana; 10% from Majapahit and 10% from other
small logistic services. Majapahit is seeking ways to acquire bigger market shares by improving
their business process in operation by integrating their system with IT technology, developing the
e-Commerce platform, and implementing marketing methods to increase their brand awareness.
CHAPTER 2
THEORETICAL FRAMEWORK
Below is our framework in determining the best strategy for Majapahit.co, starting from
value chain analysis to analyze Majapahit’s supply chain management, then, PESTLE and Porter’s
5 Forces analysis to analyze Majapahit’s opportunities and threats based on external conditions.
These analyses are then combined into SWOT analysis to determine the strategic factors. MECE
issue tree is used to create hypotheses and finally, strategy.
Diagram 1. Theoretical Framework.
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CHAPTER 3
CONTENT
3.1. Internal Analysis
To analyze internal condition of Majapahit.co, value chain analysis is used.
Table 1. Value Chain Analysis of Majapahit.co.
3.2. External Analysis

3.2.1. PESTLE Analysis
To analyze external factors that affect logistics industry, PESTLE analysis is used.
Table 2. PESTLE Analysis of Majapahit.co.
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3.2.2. Porter’s Five Forces

To analyze external factors concerning Majapahit’s opportunities and threats, Porter’s Five
Forces is used.
Table 3. Porter’s Five Forces Analysis of Majapahit.co.
3.3. SWOT Analysis

To discover organization’s strategic factors by combining external and internal factors, SFAS
(Strategic Factors Analysis Summary) is used.
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Table 4. Strategic Factors Analysis Summary.
Notes:
- Weight scores from 1.00 (Most Important) to 0.00 (Not Important) based on that factor’s
probable impact on the company’s strategic position
- Rating scores from 5.00 (Outstanding) to 1.00 (Poor) based on the company's response
to that factor
- Column 10 (Duration) consists of S (short term; less than 1 year), I (intermediate; 1 to 3
years), and L (long term; over 3 years)
Based on SFAS table, Majapahit’s strategic factors score 2.595, meaning that the company is
slightly below average in the industry.
3.4. Problem Identification & Hypotheses

To solve the issues based on external-internal analysis in the previous subchapter, below is
the MECE issue tree to know the hypotheses to resolve the issues.
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Diagram 2. MECE Issue Tree.
3.5. Solutions
3.5.1. E-Commerce: Strategic Partnership with Marketplace
Majapahit will be able to boost their brand acknowledgment from the users and also business
sales through e-Commerce, from high usage of internet in society nowadays. e-Commerce is
defined to be an online platform to assist the business process of logistic services.
A. Strategy on developing Majapahit e-Commerce
1. Partnership with Marketplaces
To acquire more market share, Majapahit needs to do partnership with some Marketplaces
so that users can notice and directly use its services. Majapahit will conduct further
partnership with Shopee and JD.ID to do subscription based logistics services. This will
be Premium Services of Logistics services (under 48 hours of delivery service). This
will attract users in using the marketplace more as it provides faster services and also
boost Majapahit brand for this service.
2. Increasing Logistics Fleet
To acquire more market share, Majapahit will need to increase their logistics fleet in Land
(motorcycle and vans), Water Fleet (ship) and Air Fleet (Airplane) to ensure delivering
between countries or islands can be done quicker and with better service.
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3. Pusat Logistik Berikat (PLB) Warehouse for Partnered Marketplace
Considering that marketplaces nowadays also imports goods from other countries, PLB
helps a lot in cutting down idle time. PLB acts as a warehouse and was initially created
to reduce dwelling time in harbours to only a few days. Imported goods will then be kept
in PLB. Fees will only be charged by the time the goods need to be delivered to customers.
This also provides advantages to partnered marketplace as they do not need additional
space in their warehouse to keep imported goods anymore.
As logistics provider, having PLB will help Majapahit.co reduce its cycle time in
delivering goods. Majapahit.co will be able to manage and also collect data regarding
inventory, such as the flow of goods, which goods are most imported and exported, which
imported goods are sold fastest, and which local goods are the most exported.
B. Types of E-Commerce
Aside from existing Majapahit e-Commerce, Majapahit need to develop Online Service at
Marketplace (For Example: Tokopedia, etc.) to create a better user experience so that users do
not have to bounce to other applications to use the Majapahit logistic services features. Each
of these e-Commerce Platforms (mobile application, website and online service at
Marketplace) will have its own functionality based on their own features created.
C. Features inside E-Commerce
Based on the functionality of each e-Commerce platforms, there are several features needed:
1. API Integration System
To develop an Online service platform directly connected to Marketplace, Majapahit
needs to develop API Integration system so that users can directly use Majapahit logistics
services, namely payment, tracking system directly at the marketplace.
2. Tracking System
Tracking system will show information on item delivery status (like Sending to
Warehouse, Sending to Buyer, etc.) from within Marketplace, application or website.
3. Application Authentication
Users can authenticate Majapahit application account with marketplace account like
Shopee, JD.ID to redeem loyalty program and also subscribe more promotional programs
from the Majapahit services.
3.5.2. IT System Integration
A robust IT system makes it easier for Majapahit.co as it transcends to become top
courier express and hybrid logistics. Below is the list of recommendations on which
technology should be implemented.
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a. Central Database Development & Machine Learning
Database management system (DBMS) is key to many decision-making processes.
Enhanced with machine learning, collective information turns into meaningful insights.
The company's historical data will be stored safely. To avoid data losses, cloud technology
is used to store backup, as it offers a huge amount of storage space. DBMS uses structured
query language (SQL). The recommended software would be Oracle MySQL because it
is widely used and easy to implement.
b. Order Process Decision Support System (DSS)
Decision Support System (DSS) in data analytics for order process is the key to create a
more cost efficient (lowest cost operations) and time efficient (faster decision making;
faster deliveries) operations. Once customer’s order data enters the system, DSS will start
making alternatives of delivery plan: choosing the vehicle, delivery batch, route, and
delivery cost. DSS will then recommend several relevant options of distinct services for
the customer to choose from. This technology makes sure that Majapahit.co’s customers
have chosen the most relevant service that they need.
c. Company-Wide Enterprise Resource Planning (ERP)
ERP helps Majapahit.co in integrating different parts of the company so that every
division works hand-in-hand. Custom ERP development is recommended since it is easier
to adjust it to the company’s needs. The recommended language would be Java for its
common use by developer. For further details regarding ERP development, refer to
Appendix A.
Below is the process for Subscription of #Dijamin48Jam.
Diagram 3. Flow of Delivery Process Using 48Hours Subscription

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3.5.3. Data-Driven Operations
Insights from database are used to aid managers in making decisions for better and more
efficient operations. Several important decisions, such as marketing in underperforming areas,
where to make new warehouse, where & when to add new vehicle, and which branches need
self-service machine.
Self-service machine helps crowded branches/drop point to reduce its service time by a few
minutes. Customer simply enter the package and order data into the system and label will be
printed for customers to stick the label and put it to the drop point. This alternative is pretty
similar with online check-in and baggage drop in airports. There are two things to consider:
customers’ familiarity with self-service technology and whether or not the branch/drop point
is crowded and causing delays in operations.
3.5.4. Marketing Strategy
Marketing strategy of Majapahit.co will focus on both physical and digital areas, consisting
of 3 stages: attraction, selection, and retention; in order to create a complete customer journey.
Digital marketing strategies will all end in one landing point: Majapahit.co website.
A. Attraction
This stage aims to increase brand awareness and product differentiation of Majapahit.co.
1. Content marketing
This strategy targets tech-savvy people who are always connected to the internet. Using
#Dijamin48Jam campaign, some programs will be conducted through Instagram and
Youtube: video ad, endorsement, and photo contest; to introduce a premium feature of
Majapahit in e-commerce. #Dijamin48Jam means that customers’ packages are
guaranteed to arrive in less than 48 hours. Recommended brand ambassador is Raditya
Dika (@raditya_dika on IG, 1.72% engagement rate, 13M followers) who will star video
ad in Youtube (5-sec ad) and endorsement. Two winners of photo contest will be rewarded
free vouchers of Rp100,000. Further, those who join the contest can also be the source of
AI data for Majapahit.co to do personalized marketing. Pop-up ad should also be available
in Shopee and JD.ID about #Dijamin48Jam campaign. For further details regarding the
campaign, refer to Appendix C.
2. Interactive billboard installment
To gain more attention, Majapahit will use an interactive billboard as conventional media
to show funny pictures and videos from social media to eliminate boredom by traffic jams.
Therefore, this billboard will be installed in some congestion points in big cities: Jalan
SCBD (Jakarta) and Jalan Layang Pasupati (Bandung). Further, this strategy also aims to
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encourage word of mouth and creative ambience to bring Majapahit and public closer.
For example, by taking Instagram Stories of this billboard, so that it will go viral.
3. Grant-a-Wish
Grant-a-Wish is a seasonal program during national holiday (Christmas, Eid Mubarak)
aims to give credit for some outstanding efforts of employees throughout the period by
granting houses and other primary necessities. This also encourages the positive branding
of Majapahit.co. as a company.
B. Selection
This stage aims to improve and strengthen Majapahit sales. Customer can differentiate the
superiority of Majapahit other than similar brands, thus, using its service.
1. Double Trouble Promotion
When people start subscribing during the first month of grand launching, they will get
another month for free.
2. Interactive booth
Majapahit will present in expos and exhibitions in shopping malls to interact with people
through educational games and videos about Majapahit product differentiation. It will
also be the platform where Majapahit promotes #Dijamin48Jam campaign.
C. Retention
This last stage is for loyal customers of Majapahit.co who use Majapahit services as their
main logistic courier by giving more convenience and incentives.
1. Customer Service
In order to develop a personalized interaction between customers and Majapahit.co,
customer service is needed so that they can address complaints for Majapahit service.
The machine behind this chatbot will be personified by giving name: Mr. Maja.
Customers can ask and complain about Majapahit services to Mr. Maja by text and
voices. Mr. Maja will answer questions through chat according to Majapahit’s database.
Majapahit.co can create a strategic partnership with WIR Group, an Indonesian tech-
based company in the field of digital reality.
2. Loyalty program
Appreciation token will be given every month. Customers who manage to collect 10
tokens will get 1 month premium free.
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3.6. Implementation
3.6.1. Timeline
Table 5. Implementation Timeline
3.6.2. Key Performance Indicator

Table 6. KPI.
3.6.3. Financial Analysis

Table 7. 3-year Financial Analysis
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3.6.4. Risk Mitigation

Table 8. Risk Mitigation.
CHAPTER 4
CONCLUSION & SUGGESTIONS
Based on the analysis and recommended strategy, Majapahit.co can fulfil its vision to be the top
courier express and hybrid logistics. Majapahit’s vision is broken down into 3 aspects below.
1. Cost Efficiency Leadership: obtained through the usage of Order Process DSS to generate
end-to-end delivery plan.
2. Technology Advancement: Majapahit enlarges its scope by developing its IT system
through Database Management System, Order Process DSS, Company-Wide ERP, and e-
Commerce development with strategic partnership with marketplaces (JD.ID and Shopee).
3. Excellent Service: delivered to customers through partnership with marketplaces. The
provided services are built-in tracking system, #Dijamin48Jam subscription, and
imported/exported goods warehouse in PLB.
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REFERENCES
Bowersox, Donald et al. Supply Chain Logistics Management. International edition, Mc-Graw Hill, 2002.
Ghiani, Gianpaolo et al. Introduction to Logistics Systems Management. 2nd ed, Wiley, 2013.
Lambert, Douglas et al. Fundamentals of Logistics Management. Irwin McGraw-Hill, 1998.
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APPENDIX
Appendix A. Enterprise Resource Planning in Details
Below are the listed applications that are needed to build up Majapahit.co’s ERP.
1. Sales & Delivery Applications: order input, daily courier delivery report
2. Reporting Applications: monthly report submission, daily courier delivery
report
3. Financial Applications: transactions management, budget allocation plan
4. SCM Applications: transportation management system (order process DSS,
shipment tracking system) , delivery plan
5. HR Management Applications: attendance data, performance data
(collected from manager’s report), recruitment management
6. Service Applications: after-sales, customer service, customer networking
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Appendix B. Assumptions for Financial Analysis
Discount rate 15%
Annual inflation rate 3.5%
Risk contingency 5%
Power Cost Increase 10% annually
ERP Subscription Refer to SAP subscription
48Hour Subscription Monthly Price Rp25,000
Appendix C. #DIJAMIN48JAM Campaign Interface
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Appendix D. External Data
Disclaimer: Nusantara and Indonesia are interchangeable terms. All data regarding Indonesia’s
economy, market conditions, social factors, etc are assumed to be Nusantara’s current
situation.
Exhibit 1
Foreign Direct Investment
Source: World Bank, 2019
Exhibit 2
Nusantara Interest Rate
Exhibit 3
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Nusantara Inflation Rate

Exhibit 4
Nusantara GDP

Exhibit 5
Nusantara GDP in Services

Exhibit 6
Nusantara Demographics
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Source: Indonesia Investments

Exhibit 7
UN Prediction: Living Area
Source: Indonesia Investments

Exhibit 8
Commitment to Reduce Greenhouse Gases
Source: Indonesian Ministry of Foreign Affairs
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DIPONEGORO BUSINESS CASE

Team Name: Veritas

Email of the team leader : jofiandyleonata@hotmail.com

3.2. External Analysis

3.2.2. Porter’s Five Forces

3.3. SWOT Analysis

3.4. Problem Identification & Hypotheses

Diagram 3. Flow of Delivery Process Using 48Hours Subscription

3.6.2. Key Performance Indicator

3.6.3. Financial Analysis

3.6.4. Risk Mitigation

Appendix A. Enterprise Resource Planning in Details

Discount rate 15%

Annual inflation rate 3.5%

Power Cost Increase 10% annually

ERP Subscription Refer to SAP subscription

48Hour Subscription Monthly Price Rp25,000

Appendix C. #DIJAMIN48JAM Campaign Interface

Source: World Bank, 2019

Source: World Bank, 2019

Source: World Bank, 2019

Source: World Bank, 2019

Source: World Bank, 2019

Source: Indonesia Investments

Source: Indonesia Investments

Source: Indonesian Ministry of Foreign Affairs

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