FINAL EXAM - MM5012

BUSINESS STRATEGY AND ENTERPRISE MODELLING

Muhammad Arfidh/29118365/YP60C

1. General Overview
1.1 Company Profile
1.1.1 Company History
Based on data from the Ministry of Small and Medium Enterprises Indonesia as
much as a total of 98,7% of business in Indonesia are small and medium businesses.
The SME sectors had a positive impact on GDP contribution in the last five years from
57.84% (2012) to 60.34% (2017) TA. At the moment, the largest GDP contribution in
Indonesia is in Java with a percentage of 58.48%. Then the role of MSME is encouraged
from various sectors, one of the cooperative sectors and the creative economy which
contributes 7.1% to GDP and absorbs 11.8 million TA workers, making it one of the
mainstay fields to improve the economy of the Indonesian. This makes government
focus on developing MSME, to be able to become the backbone of Indonesia economy
with funding/financing programs at the Ministry of SME. The Creative Economy Agency
(Bekraf) has determined 16 sub sectors supporting creative industries in Indonesia, and
one of the three sub-sectors that contributed the most is the fashion industry by
18.15% which has the largest percentage of export value of 57.5% TA. This indicates
that the fashion industry and MSME in Indonesia have an important role to advance
the nation's economy. So that Indonesia needs MSMEs that have global
competitiveness with high standards.
Cotton.go is one of Indonesia`s local pride fashion brands that sells life wear
product. Established in 2015, Cotton.go already have consumer-based around
Indonesia. They got a vision, to be an Indonesian preferred casual life wear fashion
brand that provides high performance products with worth to buy price. Cotton.go
move to achieve their dream with increasing product quality, do a market research for
development product, and create marketing strategy. Cotton.go currently consist of 2
people, the founder who handle production process and digital advertising, and there
 is Co-founder that do a shipping, photo product, public relation, and market research.
For RnD activity, it's done by both. The vision of Cotton.go is feasible and realistic, their
value proposition is to give the best benefit from product that they offer with worth
price. Those strategies can be done by selecting the best alternative of infrastructure
for their daily operational needs like a laptop, mobile phone, and office stationery for
their own assets. On the other hand, Cotton.go does a production process with the
third-party companies to keep up the good quality product and make it efficient on
production cost. Therefore, Cotton.go member have a good relationship with some
convection vendor on Bandung.
One of special things about this company is they create their own data order
system. The system that integrated with daily order and automatically can generate
insight for product development, and consumer behavior; like best seller product,
demographic, amount of money that they spent on purchasing fashion product and so
on. Another thing that valuable and rarely SME have is the system can be easily
monitoring their current performance so they can improve sector who have a red and
yellow indicator.
1.2 Vision and Mission
1.2.1 Vision
To be an Indonesian preferred fashion brand that provides high performance casual
life wear products with worth to buy price.
1.2.2 Mission
a. Providing casual lifeware fashion product based on market needs
b. Doing the right R&D process for providing high performance product
c. Building relationship with third parties to handling production for keeping up the
quality and minimizing production cost
1.3 Current Performance
Already have consumer based on 24 provinces in Indonesia. Exhibit 1 give us an
overview of yearly activity sells in 2019, that Cotton.go succeed gaining revenue US$
21.642,9 and predicted to reach around US$ 36.000 at the end of year, increase 8% from
2018. Cotton.go selling activities rely on online based activity. Website and marketplace
like Tokopedia and Shopee are the most effective selling channel for Cotton.go today. Their
channel brings them to another level selling capability and help them to aim first US$
12.000 revenue for 6 months in 2018, increase around 40% from previous year, it help
them also on managing logistic, updating stock, and creating marketing promotion. These
tools give Cotton.go advantage to compete on market.

Sells Graph 2019

60.0
50.0
40.0
30.0
20.0
10.0
0.0
1 2 3 4 5 6 7 8 9 10

Exhibit 1, Cotton.go Sells Activitiy

In addition to give value for customer, Cotton.go serve better on services and
engage more on social media. Mostly Cotton.go customer are fresh graduate millennial
and final-year students around 22 – 24 years old. So, they intense to open social media and
got more exposure especially on Instagram. The role of Whatsapp, Line, and Instagram
application of Cotton.go functionally is for engaging with customer by doing conversation,
giving education, and share value. It is effective and efficient for targeting their market
segment. On the other hand, they are using Shopee, Tokopedia, and website for
purchasing a product. According to the official store on Shopee and Tokopedia, they got
4.7 rating score from 5 scale and got star seller labeled on Shopee. This indicates they have
a credibility on product quality, delivery time, customer services responsiveness, and 100
order every month with different buyers from previous.
In early year on 2019, Cotton.go received an offer to collaborate with one of the
leading travel agents in Southeast Asia, Traveloka. They offer partnership toward
marketing value exchange system through redeem points on Traveloka. They are curating
 some brands with various criteria and only selecting the best brands in their segment. This
indicates that Cotton.go has good quality in terms of service and products.
At the moment, Cotton.go has launched 3 main category products, those are; shirt,
t-shirt, and jacket. Unfortunately, t-shirt product is no longer to produce anymore.
Therefore, their revenue relies only on 2 main category product those are jacket and t-
shirt. On early stage of their run on 2015, Cotton.go sell many category products like jacket,
hoodie, parka, shirt, and t-shirt with some variants alternative color and pattern for
customer consideration, but its turn into a long and inefficient cycle capital. Because they
are MSME company and got limitation on capital, then the stakeholder must redefine their
strategies and create more efficient and effective ways to gain more revenue from it. So,
they only launch most profitable product based on market research and historical data.
That`s why today Cotton.go only selling t-shirt and jacket. However, it does not rule out
that they can produce shirt or other products again in the future because they have enough
capital from sells after four years doing a business and funding from investor.
1.4 Company Issue
Back on the day when company decides to move their production process to third
parties on 2016, this strategy was selected because they want more efficient on producing
goods, eliminate expenses, and more effective on selling process. Long story short after
three years doing a business, Cotton.go struggle on fulfilling opportunity demand
according to Muhammad Taufik as a founder that he mentions more than US$ 1500 loses
every month because they cannot fulfill customer order “It’s not because the quality, but
it’s all about the availability of product” he said. From stakeholder analysis factor that
effecting on fluctuate demand is the availability product. This was happened because third
parties as a production manufacture of Cotton.go cannot fulfill the total order. Often, they
only just producing 90% or around 80% for the lower limit from total order as what they
request. Some obstacles like workload and technology are major problems of third parties.
So that`s why they face fluctuating demand each month. Taufik was wondering to
accelerate production process while keeping up the quality product by join venture with
another convection vendor on Bandung. Meanwhile there is convection in Bandung called
 marfpro that available on the market to be acquire and have capability on machine
technology and expert staff.
Another consideration of stakeholder is to expands their business for entering
woman market in Indonesia. Taufik and the team keen eye of the opportunities with this
attractiveness market. Indonesian people today dominated by woman and their behavior
on purchasing product is more impulsive than men. This triggered and convinced to enter
the market. However, if Cotton.go enter woman market, it can be tough for them, because
they only consist of 2 persons on doing business. It might be frustrated to enter woman
market if they rely only on today team composition. They must hire and restructuring
organization. It can take time to do that.
On the other hand, they can keep going on selling male category product and
create another model or product line because male category is already accepted by their
consumer and noticed by one of biggest player of travel agent in South East Asia, Traveloka.
Taufik also sees customer loyalty and market share of Cotton.go increase 10% each month.
This can be positive sign if he is focusing on this market in the future.
Taufik tried to evaluate the impact of the recent changes in the Indonesian and
global markets. He wondered whether Cotton.go should enter new market segment,
strengthen their position on male products, or join venture with another convection either
acquiring marfpro as a convection vendor in Bandung that have a capability on machine,
and expert staff then developed it for minimizing production cost? Along with company
goals, all those options were great, but he is a risk averse person who looking for steady
growth and want to gain more revenue in the future.
1.5 Level of strategy required to solve the strategy
Cost leadership strategy on short-term strategy for competing market competition and
best-cost provider for their long-term strategy after aiming some capabilities
1.6 Owner of the issue
To Muhammad Taufik as a CEO of company.
2. An assessment of business environment
2.1 PESTEL Analysis
Politic
a. The government of Indonesia has launched a program of 100,000 MSME Go Online
simultaneously in 30 cities or districts in Indonesia to expand market share. This
indicates that MSME can get free training program for their staff to Go Online and
have an excellence on going digital like managing social media, collecting data and
filtering needs, also make it more efficient on work hour.
Economic
a. Fashion industry contributed 18.01% to the GDP of the EKRAF sub sector in 2016
and the second creative business supporting in Indonesia (Retas, 2018). If we can
see number of total GDP of Indonesia in 2018 is around US$ 10 Trillion, and creative
economy industry contributes 7% to GDP it means generating US$ 73 Billion, and
fashion industry contribute 18.01% from US$ 73 Billion, so it means velocity of the
money on market for MSME`s fashion industry is around US$ 1 Billion and today
Cotton.go only generate 1% from total MSME`s on market. This means Cotton.go
have a big chance to catch the big fish on market.
b. Currently Indonesia fashion industry is being invaded by imported fashion products
and preloved clothing from foreign countries (Money.kompas.com, 2017). It migh
be good nor bad for Cotton.go. There will be price war in fashion industry because
of existence imported and preloved product. The good news is they can utilize this
situation by importing raw material from other countries that suit the standard and
produce it in Indonesia. Another consideration that they can buy unlabeled finished
good and label it for their own, or Cotton.go can produce products in foreign
countries. Therefore, Cotton.go must strictly select the quality, design, and sizing if
indeed they want to take this step further.
c. “Bukan Gadget, Ternyata Produk Ini yang Paling Laris di E-Commerce” that
published by Kredivo as an online credit card with a payment method and
installments provider, also Warta Ekonomi as an economic and business online
news said that 55% of woman user purchase fashion product and other accessories.
This is positive signal for entering woman market in fashion industry, but the
 number it is not so big as owner of Cotton.go assume. Based on report by
ecommerceiq, independent research company focusing on ecommerce, from 6
ecommerce in Indonesia, 5 all them dominated by men which is at least not less
than 55% and the rest is woman user. So, it can be concluded that men market in
fashion industry category still attractive and might be equal with woman market.
Social
a. Indonesian people want a different appearance from others will increase the
number of demands from the textile industry (Triawan Munaf, Retas, 2018).
According to former minister of Bekraf, this means Indonesian people still look for
another alternative to wear or buy fashion product. So, demand on this category
product will increase along with the trend and will be beneficial for Cotton.go
furthermore.
b. Trend shift from traditional and digital innovation. Indonesian especially young
generation around 16 – 35 years old today using E-wallet and mobile on doing
transaction then traditional (techinasia, 2019)
c. Trend fashion forecasting in 2019 /2020 about singularity that decide into four
theme there are exuberant, neo medieval, svarga and cortex. That all of theme talk
about a dynamic, sporty and intelligent personality (liputan 6.com, 2018)
Technology
a. The availability of modern technology in the form of cutting machines, border
machines, overlock machines, sewing machines and design technology as well as
information technology (IT) support in models and designs is considered important
and is an opportunity in the development of the textile product industry.
b. The availability of market place and social media platform for promotion and
transaction. Indonesia market is very attractive, they are fourth most populous
country in the world. Also, presence of foreign investor to join competition on e-
commerce industry in Indonesia like Alibaba give rising fund for Lazada, Shopee and
their under-parent company Sea limited, and Tokopedia with softbank and
Bukalapak with Naver as an investor make them compete to win the battle. They
 try to provide convenience for seller and buyer on doing transaction. So, it will be
win-win solution to seller to sell and promote their item on centralization place and
buyer can easy to select lot of alternative from it.
Environment
a. Indonesia have 2 different seasons, one is rainy and the other is dry. This situation
gives an advantage on fashion industry player to develop, design and produce the
product. So, it will be quieter than 4 seasons like most Europe countries, that
people should wear warm clothes now and autumn dress code for next month.
Basically, Cotton.go got beneficial things on provide casual life wear product for
long term period run.
b. Still talking about weather, Indonesia have a privilege on this situation. They can
easily deliver the goods without worries about snow pile, because Indonesia
weather condition can be easily predicted then other countries. However, natural
disaster like eruption, earthquake, flood often occur in Indonesia, and most
importantly Indonesia is archipelago countries. It might be problem for some area
to deliver, but need to remember that, densely populated island in Indonesia is java
island. So, it might be good for Cotton.go to deliver their product with cheaper
price.
Legal
a. The government makes licensing easier by launching an online single submission
for MSME, also government supports MSME movement by reducing the MSME
Final PPh rate from 1 percent to 0.5 percent. Hopefully the PPh discount is an
opportunity of profits that can be used for business expansion. And again,
government want to give access to their people to creating a job and as an
economic cog.
2.2 PORTER 5 Forces
1. Competition Rivalry (High)
Fashion is a must have products that we need, and we use every day, even
we change it 3 times a day. People often wear it depends on situation and
 condition. Fashion industry in Indonesia especially on Cotton.go scope of product
faces some challenger. They provide casual life wear product as same as Cotton.go
provide, and lot of them sometimes copy their catalogue. Some challenger might
be counted as a rival for Cotton.go according to vision, product, customer segment
and power is Rplusbasic, Heluzka, and Nordhen basic. They are providing casual life
wear product and use a similar approach. Based on fact, Cotton.go faces high
competition rivalry on market.
2. Bergaining Power of Supplier (Low)
One thing that might be consideration for company to open their business
is a supplier power. Competition on market will be tight and rough on fashion
industry, so they must be prepared and strictly minimizing their expenses to win
the battle. Speaking of Cotton.go business, their bargaining power of supplier is
low. Company have some option to join venture, doing a partnership, and even
import raw material or producing also buying their product from foreign countries.
Currently Cotto.go still doing production process with Teras Rumah as their third
parties. They are local convection that already established on 2015 and they can
produce high quality and customize some product. Cotton.go today rely on one
convection vendor, but according to the interview results, Taufik stated that he
already has a backup plan with join venture, outsourcing, and partnering with other
local convection around Bandung. Not only that, he plans to acquire small local
convection in Bandung that have a capability in technology and expert staff.
Moreover, Cotton.go have an advantage on raw material supplier that exist in
Bandung and near Teras Rumah as a production manufacture of Cotton.go. Some
alternative like Knitto, and Kenari fabric outlet can supply their raw material needs
today and the future, even though those alternatives cannot supply their needs,
there will be another supplier like WSK textile, and selenalinen that can fulfill their
demand too.
 3. Threat of New Entry (High)
Fashion is a promising industry in Indonesia, it is proven by fact that report
made by Indonesian Textile Association (API) stated that textile industry valued
about US$ 15 billion with more than 2500 manufacturers located in java alone. Not
only that, lot of designer in Indonesia gain reputation in both domestic and
international market. With the ease of technology era, many of new entry fashion
business comes to gaining revenue for big market opportunities in Indonesia. In
Bandung especially fashion brand that provide casual life wear product like
Nordhen, Rplusbasic, and Heluzka competing to increase their market share. So, it
can be concluded that threat of new entry on fashion industry is high.
4. Bergaining Power of Buyer (High)
Today buyers in Indonesia are exposed lot of advertisement every second,
even when they want to sleep. Small, medium and big player in fashion industry try
to compete and win the hearts of their potential consumers. Currently some local
and international brand sells a product that similar with Cotton.go who provide
casual life wear. So, it be concluded that fashion industry in Indonesia is red ocean
and bargaining power of buyer is high.
5. Threat of Substitution (High)
Fashion industry in Indonesia is tight because of rival the presences and
other international brand comes in that giving buyers switching costs to substitutes
low. Moreover, the substitutes product has comparable or better performance
features from international brand. In domestic competition, Cotton.go sells their
product with worth to buy price then other competitor. It might be good value in
domestic, but it is not to compete with international brand like Uniqlo, and H&M.
On the other hand, design of fashion product can change quickly and easy to
duplicate. So, it might be concluded that threat of substitutes product for Cotton.go
is High.
3. Competitor Analysis
3.1 Current Strategy of Competitor
 Now a days, Nordhen, Rplusbasic and Heluzka implementing broad differentiation
strategy. They try to provide more value and offer some categories than other
competitor on casual life wear product based on their official website. Vision of Heluzka
and Rplusbasic actually is a bit bias and not clear enough, because they try to provide
casual life wear product and did not state clearly using a cheaper or worth to buy and
even with premium price. Therefore, they sell some products to market with variety
prices. Advantage of Nordhen and Heluzka is they try to provide convenience for their
customer with opening new store on Bandung and Bali, nevertheless Rplusbasic still
rely on online based activity and their offline store not available yet. According to their
catalogue product on official website and Shopee, they are selling almost all life wear
product category from head to toe. Availability of variant color and category is their
main strengths, but not for the raw material. If we take a look on their price tag,
Nordhen and Rplusbasic is quite expensive and command a premium price for its
product with more than Rp. 199.000/ shirt article at least, but Heluzka offer cheaper
price than market value around Rp.149.000/ article. They also prepared a lot of stock
to preventing fluctuate demand on their best seller product but not for the others.
Heluzka today only selling their product on Shopee, but Nordhen and Rplusbasic they
rely on website selling activity.
3.2 Objectives (financial vs. market goals)
Speaking of business, their main goals is to charge premium price for its product
and reach large amount of customer with lot of variant color and category product. It
is good strategy for them to reach wider market. They try to aim bigger market share
every year, even every month. Another strategy that they implement is participated in
big events in Indonesia such as trademark and kickfest to introduce their brand to the
wider audience. To strengthen their position, Nordhen made their own factory goods
in 2015 to increase productivity and product quality. So, their plan to cover wider
market in Indonesia is quite good. Based on historical sells in the Shopee channel,
Heluzka has managed to sell 800-1000 products per month with revenue around Rp.
 180,000,000 /month, so, they can generate a profit around 2,160,000,000 ~ US$
154,285 at the end of 2019, it is almost 3 times then Cotton.go annual revenue.
On the other hand, Cotton.go objective is to provide casual life wear product with
worth to buy price. Their financial condition today is good and steady every year.
Meanwhile, there are lot of room for improvement on some area like
recruiting/restructuring organization structure, join venture, or either doing a
partnership or outsourcing their production process. Taufik state that Cotton.go
already have consumer based on 24 provinces in Indonesia. According to state above,
they only gain few profits from the available potential market in Indonesia that consist
of 34 provinces. They succeed to generate revenue around US$ 36.000 this year but
that is only 1% from the total market opportunity. So, opportunity for Cotton.go to
expands their business in the future is widely open. So, based on financial and market
share of competitor, Cotton.go have lot of space for improvement to compete with
their competitor.
3.3 Strengths and Weakness
Here are some strengths and weaknesses of Cotton.go Competitor
Categories Cotton.go Heluzka Nordhen Rplusbasic
Price Middle Low High High
Quality High Middle Low High Middle
Category Product Low High High High
Variant Color Product High High High High
Acceptance of Product Good So – so Good Good
Availability Channel Diverse Shopee Website Website
Based on strengths and weaknesses of Cotton.go with their competitor, Cotton.go
have an advantage on quality, price and availability channel. Acceptance of product
category is well too. It means Cotton.go can compete on wider market with selecting
product that will launch based on curated market research.
 3.4 Their assumptions about the industry
So far, annual report of Heluzka, Nordhen, and Rplusbasic are not published yet. For
SME company like them, once in a blue moon they published their performance on
public. With limitations of information on internet, they projected future demand on
market is bright and it is widely open. They believe with product that they already
launched it can be align with company goals with providing more casual life wear
product for wider audience.
4. Environmental Analysis – Internal
4.1 Resource and capability Based on VRIN Analysis
According to the interview and company’s strategy of Cotton.go, here are their VRIN
analysis:
a. Valuable
Cotton.go currently using their own customization data order system while
everyone who sees the dashboard can capture and understand easily of their
performance with real time data. So, stakeholders can easily evaluate their own
performance and fix it.
b. Rare
Using data order system that integrated and it is automatically will generate
insightful data for development product and market research. It is massive and
breakthrough system for scope of SME company.
c. Inimitable
Cotton.go today have a good relationship with some convection vendor around
Bandung. So, it will be good for Cotton.go to take advantage of this situation for
producing their goods to other convection and acquire one of best company who
have an advantage on machine technology and competent staff.
d. Non-substitutable
Although Cotton.go only consist of 2 individuals, they can handle lot of job well and
culture of company is positive. Cotton.go can transfer the knowledge for their next
 generation or new entry staff, after that Taufik and Rafif can dedicated their time
to do a specific job properly.
5. SWOT and TOWS Analysis
SWOT Analysis to assess organization's current position and using TOWS for crafting new
strategy based on the internal and external situation:

STRENGTH WEAKNESS

1. Ample financial resources to grow 1. Lack of resources on organization

their business team and production vendor
2. Good quality product 2. Easy to duplicate design
3. Accepted product design 3. Small market share
4. Loyal customer 4. Low cost switching for buyer
5. Availability sells channel 5. Limited capital
6. Competent skill of staff on
marketing and public relation side
7. Good relationship with convection
vendor in Bandung
8. Integrated system

OPPORTUNITY SO Strategy WO Strategy

1. Sharply rising buyer demand

1. Launch new category product 1. Acquiring existing company with
2. Serving additional customer
based on market needs and attractive technology and
groups or market segment
market research capabilities then train the staff or
3. Expanding product line
(S1+S2+S3+S8+O1+O3) management for accelerating
4. Utilize existing company skills
2. Take training on marketing and standard that already set by
or technology
product design to strengthen their company parent (W1+O5)
5. Acquire existing company with
capabilities and skills 2. Make collaboration with local
technology and capabilities
(S4+O4+O5+O7) artist or designer to launch special
6. Collaborate with local designer
edition product with additional
or artist
features according to market
7. Free training from government
needs (W2+W3+O6+O8)
8. Indonesian people want a
different appearance from others
 THREAT ST strategy OT Strategy

1. Increasing intensity of
1. Create membership or other 1. Open new sells channel on
competition in fashion industry
customer relationship another marketplace who already
2. Likely entry of potential new
management system for making have customer based like
competitors.
consumer happy with our brand Bukalapak as top 3 marketplace in
3. Import foreign fashion product
services and product (S4+T1) Indonesia to provide convenience
to Indonesia
2. Cotton.go can enhance their and friendly access (W3+W4+T2)
4. Profit Margin loses because
product quality with importing 2. Partnering with alfamart,
interdependency on their three-
raw material and finished goods indomaret, gopay, ovo, dana and
product category and variant
from foreign company and sell it other e-wallet company for
5. Natural disasters sometimes
with worth to buy prices. (S5+T3) easiness and simplicity payment
happen in Indonesia
method for customer
(W3+W4+T2)
3. Giving assurances on delivery or
charge prices for this feature.
(O4+O5)

6. Purpose strategy and implementation

Current strategy that Cotton.go implement today is best-cost provider strategy, but
it is not perfect yet. Cotton.go already meet basic needs of consumer by deliver it with
good quality product and worth to buy price, nevertheless they are not launch many
catalogues compared with another competitor. To keep using this strategy, they are
struggle on financial capability, and lack of human resources to fulfill volume demand and
other product needs. Worst case, buyer can be easily move to competitor because they
cannot serve some product categories. So, it is hard for Cotton.go also to enter woman
market in Indonesia while it is good opportunity for them. It is quite risky to use limited
capital and force many aspects like providing high quality with worth to buy price and
parallelly entering women market. They have some barriers that they cannot climb.
Remembering that Taufik as a CEO of company is risk averse and want to steady growth in
the future, one thing that they can do for short – medium term is gain more profit from
selling activity and minimizing cost production. After all they should do is using cost-
 leadership strategy and focusing on vertical integration to minimizing cost production to
win the battle for short-medium run with their capabilities today. They also can fulfill
customer demand if implement this strategy. Some step that they should do to make it
success with acquiring valuable convection which is marfpro, reducing transaction cost,
substituting lower-cost inputs, developing their own integrated system or software, Hire
some staff and improve capabilities with training activity and share company culture, open
new sells channel to create other revenue stream, contact artist for collaboration,
purposing partnership with other foreign company to import cheaper and high quality
material or produce the product, purposing e-wallet company to provide convenience also
logistic vendor who deliver customer product to provide assurances, and after all they can
do validation based on market research is it attractive enough to enter women market or
not. That is why it is called short – medium strategy because the things will take time for
them to implement that strategy. At least they can make it stable on one year for doing
those activity.
After company succeed on doing short-medium strategy, they can move into best-
cost provider strategy as their long-term run. Best-cost provider strategy work best when
product differentiation is the norm and an attractively large number of value-conscious
buyers can be induced to purchase midrange products rather than cheap, basic products
or expensive, top-of-the-line products. So, basically Cotton.go can reach wider audience
with large number of velocity money on the market and strengthen their position with
providing more desirable attributes (quality, features, performance, service) while beating
rivals on price.
7. Implementation Plan
To impelement strategy that already discussed above, here are timeplan on short-medium
term for Cotton.go started by early year on 2020:
Quarter Activity Resources Required KPI PIC
Using vertical integration for reducing Capital Investment, or 1. Success acquire marfpro with machine, 1. Taufik as a CEO
transaction cost, production efficiencies, financial capabilities technology and staff expert 2. Rafif as a
increase volume of production by acquiring 2. Acquire with worth to buy price based PR
marfpro as their own factory for producing the on market value
product.
Hire some staff on financial, customer service, HR consultant to assess 1. Applicants passed selection and 1. Third parties HR
operation (packing guy), marketing, talented talent of applicants or probation process that fit with company consultant
designer and other field who necessary using stakeholder criteria needs based on capability, and culture 2. Stakeholder of
Cotton.go
Improving supply chain efficiency by partnering Connection with third 1. Reducing cost spending (Cost-saving) 1. Rafif as a public
with local company who provide good quality parties, amount of cash or with decrease at least 1-5% / product relation
1 product like WSK textile, Knitto, and Kenari for fund, term of agreement cost
just in time raw material delivery. Other option for revenue or profit 2. Less than 5% of late delivery time
is partnering or join venture with foreign sharing, delivery
company by importing raw material or semi- 3. Quality product increase
finished goods.
Developing their own integrated system or Software, competent 1. System well integrated and can be 1. Rafif & Taufik
software to achieve efficiencies like sharing staff, and support devices access anytime and everywhere
data, production schedule, and integrate with 2. Provide real time data (updated every
other activity outside of the realm of 10minutes)
production 3. Can monitor current performance
Create membership program to increase Member card, data-based 1. Increasing customer loyalty 2. Taufik
customer loyalty consumer
Monitoring all new entry staff activity for Dashboard performance 1. Achieve 90% at least of their own job 1. Taufik
Maintain company performance

2 Contacting Indonesian artist to collaborates for Talent artist, community, 1. At least 3 – 5 artists ready to collaborate 2. Rafif as PR
launching new category or variant product for and market research for with Cotton.go for producing new
man category to aim bigger market share and selecting talent according category or limited product
brand image to company vision
 Substituting lower-cost inputs to reducing cost Market research, 1. Found input that can decrease production 1. Taufik
production researcher, designer, well cost
manufacture 2. Design product more aesthetic and useful
Make a validation and feasibility study to enter Researcher, data, 1. 5W+1H to enter woman market in 1. New staff on
woman market and its attractiveness computer, office Indonesia managing and
equipment and funding 3. Growth of woman market in the future research
Register new staff on free training of digital Trainer from government, 1. Staff passed training above good score. 1. Rafif a PR staff
marketing from government to enhance their workshop event 2. Staff can implement their knowledge on
capabilities company.
Create motivation for employee with incentives 7s strategy framework 1. Employee productivity increase 1. Taufik and Rafif
and company culture that align with company 2. Employee known company vision, goals
vision and strategy and strategy
Purposing partnership term with e-wallet Logistic vendor, also 1. Big player of e-wallet company in 1. New staff on PR
company and logistic company to provide agreement between e- Indonesia like gopay, ovo and dana also division
convenience to customer wallet company JNE, J&T and sicepat ready to cooperate
Conducting new design for product line male Technology, operation, 1. Design is fulfilling high quality standard 1. Rafif, new staff
3 category based on collaboration with artist in distribution and operation and production cost can be more and designer
Indonesia for reaching wider market efficient
Produce product collaboration product on their Production plant and 1. On time process 1. Marfpro
own factory to minimize cost manufacturer 2. 3% defect product
3. 3% cost decrease on producing product
Launch product based on collaboration with Sales and marketing tools 1. Market share increase 10% at least 1. Taufik
artist to gain bigger market share such as poster and 2. Brand awareness increase 2. Rafif
advertisement budget 3. Increase revenue 3-5% 3. Artist
also distribution channel 4. Marfpro
Create 2021 timeplan and match it with 2020 Company evaluation 1. To create sustainability strategy that 1. Whole team
4 performance and improve the gap. report, masterplan, scalable, achievable, and measurable for
roadmap and external best-cost provider or keep using cost-
and internal analysis leadership strategy
2. To evaluate company performance
3. To sees the possibilities on entering
women market
After timeplan explanation above, these are following the main points and further
explanation about timeplan Cotton.go in 2020 using the cost-leadership strategy:
1. Using vertical integration for reducing transaction cost, production efficiencies,
increase volume of production by acquiring marfpro as their own factory for producing
the product. This can be good for Cotton.go to operating facilities at full capacity in
order to fulfill their demand and minimize unit cost. Besides that, Cotton.go can utilize
of competent staff also improving their productivity.
2. After they acquire marfpro as a factory of their own, next step is to improving supply
chain efficiency by partnering with local company who provide good quality product
like WSK textile, Knitto, and Kenari for just in time raw material delivery.
3. Other option is partnering or join venture with foreign company by importing raw
material or semi-finished goods. This can be cost-saving opportunities in the future for
them.
4. One of competencies that Cotton.go have is they able to build products that can be
accepted and loved by consumer. Substituting lower-cost inputs wherever there is little
or no sacrifice in product quality or performance is key activities on reducing cost. So,
as they know how to substitute the input with lower price but equal or even better on
value what they give, it is must action to do. For example, Cotton.go can minimize cost
by substituting the same texture raw material on shirt category product with cvc
lacoste pique while previously they are using american drill that have same texture and
level of comfortable.
5. Developing their own integrated system or software to achieve efficiencies like sharing
data, production schedule, and integrate with other activity outside of the realm of
production.
6. Improve capabilities on designing product, marketing, and other field associated with
value chain activities by joining free class from government for digital marketing
training.
7. Create motivation for employee with incentives and company culture. Economical
factor can encourage employee to be more productive and more innovative. So,
 company can save innovation budget and provide positive culture that company had
to employee.
For implementation of short-medium strategy it can be longer or shorter according to the
external and internal condition of Cotton.go. Hopefully they can implement it with
satisfying result and in accordance with the specified time.
Next step after short-medium strategy is already implemented well, Cotton.go can
use their long-term strategy, that is Best-cost provider strategy. This strategy is a hybrid of
low-cost and differentiation strategies, and the objective of is to provide high qualities with
some features and sale it with middle range price or worth to buy price. Accordance to
company vision best-cost provider is the best strategy to implement with.
Strategy can best implement when large number of value-conscious buyers can be
induced to purchase midrange products rather than cheap one, basic products is
expensive, top-of-the-line products. After capturing fashion industry market, competitor
also sale it with expensive price, and buyer also can be induced to purchase midrange
products to aim quality and features product. So, Cotton.go can use best-cost strategy with
providing more desirable attributes based on market needs and research like quality,
features, performance, and service. With those steps, Cotton.go can beat rivals on price
and their customer based will easily move to Cotton.go. Important to note that Cotton.go
must consistently manage and launch product based on market needs and sell it with
valuable quality features also worth to buy product, align with their vision.