DESIGNING THE BUSINESS STRATEGY FOR PT XYZ: A COMPANY SPECIALIZING IN HEALTH INSURANCE SERVICES IN SIDOARJO, EAST JAVA.

Abstract

Insurance has a significant part for the Indonesian economy. Insurance can enhance the allocation of public funding to address financial risks, particularly in industries with elevated health risks and work accidents. However, the level of competition in the insurance industry is rising. In 2020, the Financial Services Authority (OJK) reported that there were 376 insurance businesses with valid business licenses operating in Indonesia. The objective of this research is to develop a business strategy for PT XYZ that will ensure the long-term viability of the company and identify areas for improvement. PT XYZ, located in Sidoarjo, East Java, is a company that specializes in providing health insurance services to a diverse range of organizations. Strategy formulation necessitates the examination of industrial structure through Porter's five forces and SWOT analysis. This analysis serves as an input stage in evaluating business strategy formulation, specifically in assessing the significance of Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), and Competitive Profile Matrix (CPM). During the matching stage, an analysis was conducted to align opportunities and threats with strengths and weaknesses. This analysis involves the use of the SWOT matrix, IE matrix, and GSM matrix. The decision stage involves making a decision to establish a strategy by utilizing the Quantitative Strategy Planning Matrix (QSPM). Therefore, an appropriate course of action to be undertaken at PT XYZ is the market development for health insurance services.