Track: Graduate Student Paper Competition

Abstract

The automotive industry is one of the largest and most complex industries around the world. The automotive industry needs to implement a long-term strategy for the company. Before the COVID-19 pandemic emerged, the automotive industry was projected to witness steady growth through the course of this decade. To restore the demand for the automotive industry in Indonesia, the Government will provide financial incentives in the form of a reduction in Sales Tax on Luxury Goods rates. The research methodology in this article uses Analytical Hierarchy Process (AHP), and Qualitative Analysis (Segmentation and SWOT). In addition, Porter’s Strategy was utilized in this article to analyze automotive industry attractiveness from an outside-in perspective during the COVID-19 pandemic. To do so, a case study approach on Indonesia's automotive industry firms, e.g., Toyota and Daihatsu were employed. The analysis result acknowledged the application of Porter's generic strategies to automotive industry firms to achieve competitive advantage and proved the positive impact of generic strategies on firms' financial performance. This research contributes to existing research by suggesting Porter's generic strategies in the Indonesian automotive industry.

Keywords

Automotive Industry, Analytical Hierarchy Process, Covid-19, Porter’s Strategy