With Decades of Experience, Putra Remaja Otobus Company Explores New Business Sectors by Entering the Logistics Industry
Turning challenges into opportunities, Putra Remaja has diversified its business by entering the logistics industry and creating new revenue streams amidst the pandemic.
With over 40 years of experience paving the Java-Sumatra route, the Putra Remaja Otobus Company (PO) from Muntilan, Magelang, Central Java is capable to explore new business sectors. In the hands of the second generation, Putra Remaja took a bold step by diversifying its business and establishing Putra Remaja Logistics. We at basicludo help Putra Remaja Logistik prepare to enter the industry by designing brand strategy development, operating systems, management arrangements. These strategic resources will form the foundation for Putra Remaja Logistics in operating the new business.
CASE
"Entering as a new player in the logistics sector, Putra Remaja faces challenges in developing a new business model."To unleash Putra Remaja Logistics' business potential, we carried out a series of assessments as a verification step for the new business model. The challenges posed by the pandemic became our main concern when conducting this assessment, as the new business would need to solve this problem.
From the results of the assessment, we see that the greatest potential of PO Putra Remaja lies in the Java-Sumatra route. We also conducted an assessment to see existing business lines that are still running during the pandemic. The public transportation business, especially for passenger transportation and tourism, is very much affected. One one hand, these businesses including PO Putra Remaja experienced a decline in income due to the pandemic. On the other hand, the logistics business is still very needed during the COVID-19 pandemic. From here, we are quite optimistic about designing a new strategy for Putra Remaja Logistics.
However, another challenge arose when we wanted to determine the positioning of Putra Remaja in the logistics business arena. In response to this problem, we again conduct an assessment. We believe that all business issues we handle need to be answered with data.
INSIGHT
"Putra Pemuda Logistik operates as a B2B that links MSMEs and corporate businesses to a wider market."Based on the results of our assessment, Putra Remaja Logistik has the opportunity to have a higher profit value when engaging in B2B. From here, we then develop a value proposition that has been adjusted to the original positioning. The businesses targeted by the Putra Remaja Logistics range from MSMEs to established corporate businesses.
We utilize the power of the Java-Sumatra route as the main value, as it has become a distinction for Putra Remaja. In addition, we add another value that is no less important, namely how Putra Remaja Logistik can play a role in connecting MSMEs to the wider market. However, it does not stop there, as Putra Remaja Logistik trusts us to arrange an operation system management from upstream to downstream.
Armed with decades of experience, PO Putra Remaja has a strong mass base spread from Java to Sumatra. As a brand, Putra Remaja is already at a fairly well-established level where customers place high trust. This distinction is the main capital for Putra Remaja Logistics to start its journey as a new player in the logistics industry.
RESULT
"The second generation's ability to manage this new family business is an important step in ensuring the company remains at the forefront."Gradually, Putra Remaja became a new player who has advantages in the logistics business sector. With capital in the form of assets, neat management, and passenger trust, Putra Remaja Logistik is slowly building its name in the logistics business sector.
Departing as one of the old players in the public transportation business, Putra Remaja has succeeded in capturing new opportunities by becoming a trusted logistics service provider and generating income amid a difficult pandemic situation. This transformation is marked by a series of changes, including from the bus agent. Putra Pemuda Logistik also started to open logistics agents who became the liaison between one business and another.
In the hands of the second generation, Putra Remaja has succeeded in building a promising new line of business that can generate profits. With dedication and consistency, Putra Remaja Logistics could easily develop as much as its predecessor. Moreover, Putra Remaja Logistik can remain at the forefront and become a top-of-mind brand logistics provider that is trusted by many customers.