TIJA as we know as Taman Impian Jaya Ancol has been build since 1966. TIJA located at North Jakarta near the Ancol coast. Near the coast give an advantage to TIJA rater than the competitor. As a leader in recreational and amusement business, TIJA operating many business unit like beach resort beauty (Putri Duyung), three theme parks ( Dunia Fantasi, Atlantis Water Adventure, and Ocean Samudra), and Eco Park (a center of Art and handicraft, sport, culinary, and multifunction area). Major shareholders of TIJA are owned by government of DKI Jakarta (72 %), PT Pembangunan Jaya (18%), and the last portion shared by public (10%).
Rapid economic growth in Indonesia as well as increase of power purchase parity is good signal to all Industry including recreation industry. Regarding the economical growth, TIJA has an ambition to expand their business and dominating the superiority in recreation industry.
While the economic grows rapidly, the inflation rate increases year by year. The high inflation rate caused the maintenance and direct cost for their business increase significantly and reduces their profit margin. Management knows, the only key solution for this problem is increase visitors number of Ancol. As an old player in the recreation business, TIJA has some challenges from the external environment, corporate, and products. 1. a. The external environment
Changing environment causes a considerable impact on the recreation industry. Changes in the field of social and technology will also influence people's consumption behavior, while changes in the political field will affect the legality and the changes in the economy will affect purchasing power. 2. b. Industry competition
c. Level of competition, level of industrial development and competitiveness in the market are a few things that TIJA must know and observed. d.
3. e. Business
TIJA have many businesses, but not all of business have bright prospect to be developed. Some may have a good prospect, but some will not. Growth of product, profitability, strengthens, weakness, opportunity, and threats of each product should be a consideration for Management to decide the best strategy for us.
1. 4. The external environment: PEST analysis
The trend of direct elections suggest that democracy in Indonesia is becoming securely entrenched. While, governments are likely to continue to become more business-friendly, but a proportion of legislators will also lean towards economic nationalism, particularly if the global outlook deteriorates. * Economy
Indonesia is the largest economy in the Association of South-East Asian Nations (ASEAN), but GDP per head remains relatively low. As exports account for a relatively small proportion of its GDP, Indonesia should cope better than most of its neighbors with any slowdown in global economic expansion this year, but we still expect its growth to moderate.
Indonesia’s population is still relatively young, and the working-age population is expected to continue to grow in the long-term forecast period, although the rate will slow. A salient feature of the country’s demography is the progressive urbanization of the population.
Although most of Indonesian population is low educated, communication technology in Indonesia, especially in major cities in Indonesia, grow rapidly. Indonesia’s mobile phone penetration has surged in the past five years while the number of landlines is declining.
In line with mobile phone penetration, number of internet users increase significantly with CAGR more than 30% from 2003 to 2010.
2. 3. Industry Analysis: Competition Map of Amusement Park in APAC Region
The emerging middle class of Indonesians spent increasingly more on leisure activities, thus boosting demand for amusement parks and entertainment...
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