Strategic Analysis of the Indonesian Shipyards to Sustain in the New Building Business

As a job-order industry and compete in regional/global market, shipbuilding industry must have long-term strategic plan to create sustainable competitive advantage, particularly in new building business. My published paper in an International Journal in 2010 presents a strategic business analysis of the Indonesian (national) medium-sized shipyards, by using Shipyard Business matrix that resulted from the shipyard’s internal and external strategic factors. The result shows that, the national shipyards are less competitive compared to their potential competitors in the region. This is particularly due to limitation of intangible resources and availability of local competitive supporting industries. To create sustainable competitiveness, therefore, they are recommended to implement intensive and integrative strategies. The intensive strategy is mainly aggressive marketing to the existing customers through improving internal processes to improve company reputation in product quality and delivery time. The integrative strategy mainly relies on building strategic alliance with steel manufacturers, main engine vendor, and suppliers of fast moving materials.