motorcycle spare parts sales and provides service for motorcycle while the machinery workshop business provides automotive engine rebuilding service, machinery repair services, and technical support for various small to medium industry in surrounding area. The company is the oldest shop in that area which still exists today and is one of the biggest motorcycle workshops in town.
The company is a family owned business with about 50 workers. The company is led by a director who is also the founder and the owner of the company. In practice, the involvement of family members in business is relatively large which can be seen from many key positions in the company occupied by the family members. The Company applies autocratic management style in which the director takes most of the company's strategic decisions. Over the last fifteen years, the company did no-change strategy that is characterized by the absence of significant changes in the way of doing business.
Over the last ten years, there has been a change in a business environment characterized by the emergence of many new companies. In the machining workshop business, the company is protected by the amount of capital required to establish a workshop as a significant barrier to entry. This resulted in only small competitors that have sprung up so there is no potential competitor that harms the existence of the company and only causes a slight reduction in the company's market share. Unlike the machinery repair business, the motorcycle workshop business facing a worse situation with the establishment of many motorcycle workshops on a small to large scale spread in various locations of the city.
The company's annual sales in the business of motorcycle workshop are nearly 1 billion rupiah. In this business, the company serves two business segments namely: Business to Business (B2B) and Business to
Customer segment (B2C). The company is facing tight competition that leads to price war which badly hurt