Track: Case Studies

Abstract

In light of the emergence of COVID-19 pandemic, public life and industrial sectors have been significantly restricted as the attempt to curb the spread of the pandemic, which reduced the overall world energy demand. This study aims to explore the impact of competitive strategy on the operational and financial performances of an Indonesian coal mining company during COVID-19 pandemic. This study takes Adaro Energy as the object of the case study with analysis on operational aspects including coal production, sales volume, overburden removal, and lost time injury frequency rate. While financial data is analyzed by using the method formulated in the Decree of Ministry of State-Owned Company KEPMEN 100/MBU/2002, where eight financial indicators that cover profitability, liquidity, activity, and solvability are used to calculate companies' financial health. Through this study, it is found that Adaro Energy’s operational and financial performances were negatively impacted by the COVID-19 pandemic, however, it is also found that Adaro Energy’s cost leadership strategy implementation was able alleviate the negative impact of the pandemic and assisted the company in maintaining its performances. Therefore, this study helps to understand the concept of how the appropriate competitive strategy could assist organizations in navigating under rapid changes and uncertainty in their industries.