IB Group Assignment v3

Group Assignment - International Business
mjXXX
Eminent Collection System: A Malaysian Debt

Manager Software Penetrates into Indonesians
Banking Industry
By
GFMA6043: International Business

Universiti Utara Malaysia (UUM)
March 2017
International Business: Eminent Collection System
Table of Contents
1 Executive Summary......................................................................................................................3
2 Product Introduction.....................................................................................................................4
3 Market Situational Analysis..........................................................................................................5
3.1 Indonesians Banking Industry...............................................................................................5
3.2 Market Segment.....................................................................................................................9
3.3 Market Size and Growth......................................................................................................10
3.4 Competition Analysis...........................................................................................................11
3.5 PEST Analysis......................................................................................................................12
3.5.1 Political..........................................................................................................................12
3.5.2 Economic.......................................................................................................................13
3.5.3 Social.............................................................................................................................14
3.5.4 Technological................................................................................................................16
3.5.5 ENVIRONMENT..........................................................................................................17
3.5.6 LEGAL..........................................................................................................................18
3.6 SWOT Analysis....................................................................................................................20
3.6.1 Strengths........................................................................................................................20
3.6.2 Weaknesses....................................................................................................................21
3.6.3 Opportunities.................................................................................................................22
3.6.4 Threats...........................................................................................................................23
3.7 Porters 5 Forces...................................................................................................................24
3.7.1 Threats of New Entrants................................................................................................24
3.7.2 Threats of Substitute Products.......................................................................................25
GFMA6043: International Business Page 2 of 29

3.7.3 The Bargaining Power of Buyers..................................................................................25
3.7.4 The Bargaining Power of Suppliers...............................................................................25
3.7.5 Rivalry among existing Firms.......................................................................................25
4 Objectives/Decisions...................................................................................................................25
5 Recommendations of Marketing Mix Strategy...........................................................................26
6 Action Program...........................................................................................................................27
7 Control Strategy..........................................................................................................................28

1 Executive Summary
With the current economic slowdown, retail (consumer) and corporate debt is increasing very
quickly due to the credit crisis. The trend is likely to continue in the years to come. Specifically,
the ratio of nonperforming loans (NPLs), to gross loans is normally used as a soundness indicator
of the performance on the lending institutions. By definition, NPLs are credit facilities secured
or unsecured-in respect of which the interest and/ or principal amount has stayed past due for a
definite period of time. According to the Banking and Financial Institutions (Management of
Risk Assets) Regulations, 2008, NPLs are any credit accommodation[s] for which contractual
repayments are 90 days or more past due or [are] classified as substandard, doubtful or loss, and
[are] placed on a nonaccrual basis. This NPL will stop generating income for the bank which
will impact on the survival and growth of the bank.
The same situation faces by banking industry in Indonesia. The economic crisis affects their
credit performance which leads to the increasing of their NPL rate. This situation emphasizes the
banks to having efficient and effective Redygaaaaaaaasy.;venue Collections and Debt Recovery
Management processes in place.
Eminent Collection System takes place to help banks to collect and recover their bad debt, as a
result itll improve the performance of their lending portfolio. By leveraging innovative
technology, the company strives to increase Collections to the next level, to optimize business
receivables and enhance valued customer relationships by focusing on Collections from the
Customer base.

However, the company has been trying to expand the market from Malaysia to Indonesia market.
The many challenges facing are still remain unresolved, thus the task to formulate the marketing
and business strategy still need to be improved more. The company has arranged some partner
arrangement with local company software, but the result still not achieved the target to at least
catch 20% of the market share in 2016.
2 Product Introduction
The Eminent Collection And Recovery System Corp. has been in the market since 2000 with
resources around 40 staffs. The company is local owned by Malaysia and having no branch in
any other places/countries. The company is mainly focusing on the debt and recovery software
to help banks to manage the debt collection and recovery. The software have several modules
which cover from Performing Stage of the load until Non Performing Loan Stage. The modules
as of following:
a. Debt Collection Module

Debt collection module is mainly used to manage the daily collectoion
b. Recovery Module
c. Debt Collection Agency Management Module
d. Legal Agency Management Module
e. Report Management Module
Having experiences for more than 15 years has strengthened its software position in the bank and
other lending institutions market especially in Malaysia. Currently, the company is acquiring for
more than 15 clients in lending institution in Malaysia and 2 clients in India.
The company

3 Market Situational Analysis
3.1 Indonesians Banking Industry
The Indonesian banking sector has enjoyed a steady growth for the past five years. Steady loan
growth of approximately 20% has contributed to the growth of banks total assets. Average net
interest margin (NIM) has decreased slightly due to tight competition; however, Indonesian
banks NIM remains one of the highest in the region, even globally. Despite the tremendous
growth, risk remains under control, reflected by improving non-performing loan (NPL) across all
industries.
Recent economic condition has slightly reduced the banking industry growth. Current business
environment has led banks to be more cautious in disbursing loans, thus decelerate the loan
growth across all industries. Most banks posted a single-digit loan growth and revised its
business plan to adjust to the current economic condition. NPL started rising, especially for
commodity-related sectors, as commodity prices tumbles due to slow global demand, especially
from China. Based on a survey conducted by PWC in 2015, it found that 47% of the bankers
predict that the NPL will increase in 2015 whilst 37% believed that they would remain the same.
The Financial Services Authority (Otoritas Jasa Keuangan also known as OJK) sticks to its
agenda in implementing the Indonesian Banking Architecture, which aims to create a strong and
efficient banking system, and consolidate the banks in Indonesia. There are 118 commercial
banks in Indonesia and the OJK already has a blueprint to consolidate number of banks to be
only 60 to 70 within the next 10 to 15 years, which would be divided into the following
categories: international, national and specialized or rural banks. (Indonesian banking industry,
2015)

The banking sector of Indonesia is expected to rebound in 2016 due to the lower primary reserve
requirement ratio for rupiah deposits (6.5 percent), lower cost of funds as well as operational
costs, rising credit volume (due to the lower interest rate environment) and improving purchasing
power. The banking sector is also expected to feel the positive impact of the stimulus packages
unveiled by the Indonesian government aimed at strengthening domestic businesses and improve
the investment climate. (Indonesia Investment, 2016)
In 2016 credit growth in Indonesia is targeted to grow by 12 - 14 percent year by year compared
to a growth realization of 10.42 percent (y/y) in 2015. Demand for credit is estimated to grow
strongly in the second half of the year due to demand originating from the construction,
infrastructure and consumer sectors. Bank Indonesia Governor Agus Martowardojo said these
improving conditions are (partly) caused by the series of economic stimulus packages that have
been unveiled by the government since September 2015. These packages include deregulation
measures, (tax) incentives, measures to boost purchasing power, and - more generally - aim at
enhancing the attractiveness of Indonesia's investment climate (see the table at the bottom of this
page). As a result, Indonesia's real sector is expected to expand while the start of costly
infrastructure and construction projects will also boost demand for bank loans across the
archipelago. However, in January 2016 credit growth in Indonesia's banking sector was still
sluggish at +9.53 percent (y/y) according to the latest data from the country's Financial Services
Authority (OJK). Bank Indonesia Governor Martowardojo said this bleak performance comes on
the back of companies' relatively weak appetite for capital expenditures due to weak exports-
imports amid persistent low commodity prices.
Irwan Lubis, Deputy Commissioner for Banking Supervision at Bank Indonesia stated that
demand for credit in Indonesia will improve in 2016 due to the acceleration of economic growth

and the lower interest rate environment. Indonesia's economic growth this year is estimated to
fall somewhere in the range of 4.9 - 5.3 percent year by year, up from 4.79 percent in 2015.
Meanwhile, Bank Indonesia's decision to cut its benchmark interest rate (BI rate) to 6.75 percent
at its March policy meeting will give rise to higher credit demand as borrowing costs become
less expensive. During the first three monthly policy meetings the central bank of Indonesia cut
its interest rates by 0.25 percent, each meeting, from 7.50 percent at the year-start to 6.75 percent
currently. (Bank Indonesia, 2016)
Bank Mandiri, the largest lender, reported that its first half net profit grew by 3.5% to IDR9.9
trillion. Total loan increased by 13.8%, and TPF also grew by 17.8% during first half of 2015. In
terms of NPL, Bank Mandiris gross and net NPL increased to 2.0% from 1.7%, and 0.6% from
0.4%, respectively. (Otoritas Jasa Keuangan, 2015).
The Indonesian banking industry has a smaller amount of loan, TPFs and assets. Net performing
loan of Indonesian banks is the lowest after Singapore. Furthermore, net interest margins of

Indonesian banks are known to be the highest among SEA banks. (Comparison to SEA banking
industry, 2015)

3.2 Market Segment
The market of this debt collection and recovery software can be primarily focused in Banking
Industry. The Banking industry can be segmented into Commercial and Islamic Banks where the
targeted banks must has at least minimum 100,000 accounts where Non-Performing Loan (NPL)
rate is not less than 2%. Based on Dwiyapoetra (2012), Indonesians
1. Commercial Banks
The Commercial banks can be grouped into State Owned Bank (Bank BUMN), Regional
Banks (BPD), Joint Venture, and Foreign Banks. However, the Eminent Collection
Systems is currently focused on State Owned Bank and Joint Venture Bank only, as there
are some limitations on the Regional Banks and Foreign Banks. Regional Banks has
small volume on the number of accounts and NPL rate, while foreign banks has

complexity in acquiring a project as the process must be escalated back to its headquarter
or origin country. Thus, the total targeted for State Owned Bank and Joint Venture banks
selected is about 20 banks.

2. Islamic Banks
There are currently 13 Islamic Banks in Indonesia. However, only 11 banks will be
targeted as the other two banks are regional banks which the volume of accounts is small.
The 11 banks are listed below:
1) Bank Syariah Muamalat Indonesia
2) Bank Syariah Mandiri
3) Mega Bank Syariah
4) Bank Syariah BRI
5) Bank Syariah Bukopin
6) Panin Bank Syariah
7) Bank Victoria Syariah
8) BCA Syariah
9) Bank Syariah BNI
10) Maybank Indonesia Syariah
11) Bank Tabungan Pensiunan Nasional Syariah
3.3 Market Size and Growth
The market size for banking industry in Indonesia is very huge compare with Malaysias market.
The great numbers of potential clients gives high chance for Eminent software to penetrate into
Indonesias market. The growth of NPL is also slightly increase every year due to economic
slowdown which means the banks will find a solution to reduce this rate through the technology
utilization to manage their bad debts.
3.4 Competition Analysis
The competition of the local partners is very intense. The advantages of the competitor are the
place and pricing strategy. They operate in Indonesia and offer the price much lower than
Eminent software proposed.

3.5 PESTEL Analysis
3.5.1 Political
Indonesia is presently described by well-known power showed in parliamentary and presidential
decisions like clockwork. Beginning from the fall of Suharto's New Request, which denoted the
start of the Reorganization time frame, each race in Indonesia is respected to be free and
reasonable. Be that as it may, the country is not free from defilement, nepotism, intrigue and
additionally cash governmental issues through which control or political positions can be
purchased. For instance, the poorer sections of Indonesian culture are "supported" to vote in
favor of a particular presidential competitor on race day by being given some little cash at the
voting booth. Such techniques continue and are utilized by every included side. Political
conditions are important for those who seek to invest or engage in business relations with
Indonesia. In 2014, 12 political gatherings challenged the national authoritative race. Shaped 2
coalitions and Jokowi is from the minority one. Officials need to start win-win association with
legislatives particularly those from restriction gatherings to quicken the advancement program
execution. Parts that happened in some political gatherings may make vulnerability in term of
dedication the coalition. Jokowi could have profited from this circumstance. The political system
of the country is democratic and the president and vice president of the country are elected
through parliament. It is declared the Republic and their rules and regulations are developed
under Roman-Dutch law. The president and vice president are elected after five years and
president has authority to appoint his cabinet through the votes of public

3.5.2 Economic
Doing business in Indonesia is not easy for foreign investors. Indonesia is one of the country in
the world that not in the list for investment destination. as Indonesias economic growth rates for
the last several years have been significantly below those achieved prior to the Asian financial
crisis of 1997-1998. Indonesia is Southeast Asias largest economy with a GDP of $888 billion,
ranking 10th in the world and averaging over 5% growth over the last decade. In the last 18
months, growth has slowed to below 5% and is projected by the World Bank to be 4.7% for
2015. President Joko Widodo also known as "Jokowi" took office in October 2014 and has
pledged to improve infrastructure and reduce barriers to doing business in Indonesia as a means
to increase the countrys GDP growth rate to 7% by 2017.
Over the past decade Indonesia has enjoyed steady economic growth, though less than needed to
pull the country into upper middle-income status, and the rate of growth is slowing. Sound
macroeconomic policies, combined with growing domestic demand and high commodity prices,
propelled economic expansion in recent years, but protectionist policies, corruption at all levels
of government, poor infrastructure, weak rule of law, and labor rigidity have taken their toll. The
economy has slowed over the last year to just below 5% growth rate and the rupiah, like many
other currencies, has weakened.
Economy growth Poverty
An average of 5.9% pa economic People live below poverty line was

growth rate during 2010-2014 still more than 10% of the
inflation rate reached 6.4% pa for population with GINI index reach
the same period 0.41 in 2013

IDR Exchange Rate Monetary & Fiscal Policy
Rupiah has been continuing to Central bank(BI) enforce tight

weaken mostly due to external monetary policy Government
factors that affect demand of US$ targets tax radio to GDP around 14-
in the country 14.5% in 2014
3.5.3 Social
With a populace totaling around 255 million people, Indonesia is the fourth-biggest nation
concerning populace sizes. Its ethnic piece is portrayed by assortment, in reality wide assortment,
as the nation contains several distinctive ethnic gatherings and societies. In any case, the greater
part of the populace can be named having a place with two primary ethnic gatherings. This area
zooms in on the general population of Indonesia. These two gatherings are the Javanese (41
percent of the aggregate populace) and Sundanese (15 percent of the aggregate populace). Both
gatherings start from the island of Java, Indonesia's most crowded island, which contains just
about 60% of the nation's aggregate populace. At the point when the island of Sumatra is
incorporated, this figure ascends to around 80% of Indonesia's aggregate populace,
demonstrating a critical populace fixation in the western piece of the nation. The most crowded
territory is West Java (with more than 43 million individuals), while the minimum crowded area
is that of West Papua in the far eastern locale of Indonesia (home to around 761,000 individuals).
Indonesia's national maxim "solidarity in differences" (Bhinneka Tunggal Ika) mirrors the huge
number of ethnic, social and semantic assortments that can be found inside the limits of a
country express that is the world's biggest archipelago. Surely, when you envision an animist
Papuan (in the most distant east of Indonesia) meeting a Muslim from Aceh (in the far west)

there are more contrasts - as far as religion, garments, way of life, convention, local dialect, and
so on - between both people than there are likenesses.
The yearly national populace development rate of Indonesia in the vicinity of 2000 and 2010
remained at a normal of 1.49 percent. This development was most noteworthy in the territory of
Papua (5.46 percent) and least in Focal Java (0.37 percent). Family arranging in Indonesia is
facilitated by the National Family Arranging Planning Board (NFPCB), an administration
foundation. Under President Suharto a compelling family arranging system was started in 1968
and - up to the present - proceeded by his successors. This program is a key technique as to the
nation's financial advancement as a low populace development rate converts into a higher per
capita total national output (Gross domestic product) which converts into higher Livelihoods,
higher reserve funds, higher speculations and suggests a fall in the neediness rate among the
populace. The national populace development rate was 1.2 percent in 2015 as indicated by
information from the World Bank.
Population Gender Inequality
Indonesia is the top 4 populous Gender inequality index is 0.500 of

country which in medium human
development
Male population is only slightly
higher than females
Socio Economic Socio culture
Manageable FDI and

DDI Albeit over 85% of Indonesian is
development. Muslim, the way of life is still
unequivocally impact by Hindu
Household market is imperative as Buddhist particularly those initially
Indonesia is the main four crowded from Java and Bali
nation and the greater part of

them are on the customer class
3.5.4 Technological
Indonesia has built up their own vehicle framework and they have 139 air terminals, railroads
and conduits to go to different parts and islands of the nation. As it is situated in the sea, so there
are numerous of all shapes and sizes ports and it has the greatest vendor marine of 971 in which
114 are enrolled with outside nations. This nation has built up its correspondence framework and
different new brands of the advanced mobile phones are accessible there. Individuals get a kick
out of the chance to utilize land lines and cell sharpens and they additionally utilize web. There is
less wrongdoing rate, which is great aftereffect of the inside strategies of the legislature. The
legislature has embraced the powerful communicating innovation. They have their 54 stations in
which 11 are national broadcasting companies and some are situated in the private segment.
Technology Survey Manufacture Industry
The fourth biggest clients of Innovation utilized is considered as

Facebook Fifth biggest clients of "out dated" even however
Twitter. assembling is the biggest patron of
Gross domestic product
Jakarta positioning number one
(over Tokyo) in 2012 for the
aggregate number of posted tweets

Agricultural Trade, Hotel & Restaurant
High innovation is just actualized in Cutting edge is for the most part in
specific regions, for example, seed term of e-payment(cashless)
development, bother control,
creature wellbeing and few others Other range is e-ordering (e-
booking)

3.5.5 ENVIRONMENT
The geological area of the nation is extremely intriguing as this nation is generally included a
great many the islands and it is situated amongst Indian and Pacific Oceans. It is hot and moist
nation and the climate condition is about gentle and wet round the year. More than six hundred
dialects are talked in this nation and it has more than 1100 vernaculars. It is formed or rain
woods and mangrove overwhelms and has some snow topped mountains. It is 7 hours in front of
GMT and 16 hours ahead from US. There are numerous dynamic volcanoes and they burst every
once in a while, which can make catastrophic event in the nation. The quake of 9.0 sizes brought
about the tidal wave in the nation in 2004 and it asserted 155,000 lives. It likewise confronts the
deforestation, enormous woods fire and soil disintegration and the volcanoes spread decimation
in the ranges, which it is broken out. The backwoods fire influenced the timber business severely
and it made overwhelming misfortune the nation.
GREEN ENVIRONMENT DEFORESTATION
In spite of government projects in Beat Brazil in 2012 of 840,000ha

advancing green condition, due to forest conversion to
deforestation and natural plantation, industrial and housing
contamination are as yet incident. areas. Besides forest fires and
possibility of illegal lodging.
GREEN HOUSE GAS EMISSION POLLUTION
Indonesia is the 3rd major producer Enacted regulations for various

of greenhouse gas emission after industries related to quality of waste
China and USA of which 85% were and emission, hazardous material
from deforestation. and waste management,
environment conservation, and
many others

3.5.6 LEGAL
Indonesia has presented new principles and controls in the nation and work laws are acquainted
with give the correct share of wage to the work. This law demonstrates the 7 hours workdays
and 40 hours work filled weeks. At the point when work labors for 4 back to back hours, then 30
minutes break is permitted to them. The administration additionally presented the organization
law and each organization has legitimate element and they have chiefs and officials. The
business banks have their prime loaning financing cost of 6.41% and the rebate rate of Central
bank is 10.83%.
The administration presented the ecological law and the Municipal Noise Reduction arrange has
begun as far as possible in the local locations, healing centers, schools and religious spots. In the
business division, the expense framework is presented with different changes and the duty on
initial 25 million is 10% and on next 25 million, its rate is 15% and next 50 million, the rate of
assessment is expanded to 30%. The pay expense is executed on the organizations and on the
people.


3.6 SWOT Analysis
Strengths Weaknesses
- Focusing on debt collection and - Lack of brand awareness in the

recovery management software banking industry
for more than 15 years
- Has no branches in the other
- TuV software certified by countries
Multimedia Development Corp
- Lack of strategic planning
(MDeC)
- Higher price compare with the

- Software is own developed by
local competitor.
the company which allow high
customizability and scalability
Opportunities Threats
- Indonesian market with more - The threat of India and US

than 60 banks spread through companies which are big
Indonesia players in the Collection and
Recovery Software market.
- The increasing of NPL rate in
the most of banking industry - The intense competition from
raise the necessity to have a Local Company as biggest
software to manage the bad competitor to penetrate into
debt Indonesian market.
- High Government tax and

requirement for non-local
software.

3.6.1 Strengths
a. Focusing on debt collection and recovery management software development

The company has been in the market for more than 15 years which lead to wide
experience in product and business know-how. The company really focusing on the
R&D on this collection and recovery software which allow to implement the
experiences to the software developed. The different case by case facing from its
clients allow the company to develop and implement software which can help the
entire collection and recovery issues by the clients.

b. TuV software certified by Multimedia Development Corp (MDeC) for the softwares
quality.
The company has been certified by MDeC for its product quality assessment
framework. The purpose of this certification is to promote and implement quality
standards in MSC Malaysia products, thus reducing negative perceptions about
locally developed ICT products. This certification ensures the software can compete
with other competitors and penetrate into other countries.

c. Software is own developed by the company which allow high customizability and
scalability.
The software is owned developed by the company. All the research and development
is done by its own resources. This allows the flexibility of the software development
based on clients requirement. The entire changes request to fit the clients operation
can be easily done by its team.
3.6.2 Weaknesses
a. Not really well known in the banking industry

Even though the company has been in the market for more than 15 years, most of the
lending institutions are still not aware about its existences.

b. Has no branches in the other countries

Most of the Request of Proposal (RFP) from potential clients especially outside Malaysia
requires to have the local branch. This is also become main consideration for a client to
acquire a project.
c. Lack of strategic planning

As the company is Small Medium Enterprise (SME) Company, the management is
dominantly held by the owner cum the CEO. Most of the decision making is made by
single person including with the strategic planning. This situation prevent to having
various points of view as the decision maker remain unchanged from the company is
built.
d. Higher price compare with the local competitor
Some potential project proposal which acquired earlier shows the company has higher
price compare with its local competitor. This is become main challenges to the company
as the distance issue and government requirement on the tax make the price is higher.
3.6.3 Opportunities
a. Indonesian market with more than 60 banks spread through Indonesia

The high number of banks in Indonesia promises the good potential market to this
software. Compare with Malaysian market which only has around 50 banks.
b. The increasing of NPL rate in the most of banking industry raise the necessity to have a
software to manage the bad debt

Due to economic slowdown, the NPL rate is increasing in the most of the countries
especially Indonesia. The banking industry strives to find a way to reduce this NPL rate
to increase its profit. The most important way is to increase the collection and recovery
rate through the utilization of collections and recovery software.

3.6.4 Threats
a. The threat of India and US companies which are big players in the Collection and
Recovery Software market.

India and US company are the big players in this market. Nucleus (India) and Fico (US)
have been well known in the banking industry. Even though, the price is much higher
compare with Eminent Collection System, but it does not effect on the market share.
b. The intense competition from Local Company as biggest competitor to penetrate into
Indonesian market.
Few numbers of local competitors raise the challenges for the company to penetrate into
Indonesian market. The local competitors also offer the price lower than company is
doing. In addition, the local support is also become main consideration for the client to
acquire a project.
c. High Government tax and requirement for non-local software.
Generally, the Value Added Tax (VAT) rate is 10 percent in Indonesia for the software
company. However, the exact rate may be increased or decreased to 15 percent or 5
percent according to government regulation. The high of this tax rate make the company
to put the price higher on the software.
3.7 Porters 5 Forces

The
B a r g a in in g
R iv a lr y
Po w e r o f
am ong
S u p p lie r s
E x is t in g
The Firm s
B a rg a in in g
Pow e r of
B u ye rs P o r t e r 's
Fiv e
F o rc e s
T h re a t o f
S u b t it u t e
P ro d u c t s
T h re a t o f
New
E n tra n ts
3.7.1 Threats of New Entrants
As the software require long period to do research and development, the threats of new entrants
is low. It requires great skill, experiences, and consultancy in this collections and recovery
market to fit with clients needs. This gives advantages to the company as the competition level
is not very tied.
3.7.2 Threats of Substitute Products
Currently, there is no substitute software for this collections and recovery software. The needs to
having the software are still high by the financial institutions to manage their bad debts.
3.7.3 The Bargaining Power of Buyers
Even though the market for this software is niche, the bargaining power of buyers is high. Buyers
have the power to bargain over the software in term of features and pricing offered by the
company.

3.7.4 The Bargaining Power of Suppliers
The bargaining power of suppliers in this industry is very low as a lot of companies offer the
technology to develop and support the software such as the server, database, networking, etc.
3.7.5 Rivalry among existing Firms
Even though the numbers of existing players in this industry is not high, but the competition is
high as the market for this software is very niche. The competition to get a project from banks is
very intense as it considers a lot of substances which are not only about the price and features of
the software.
4 Objectives/Decisions
The objectives of the Eminent Collection and Recovery system as of following:
a. To penetrate into Indonesians market (Banking Industry) with targeting 3 clients in 5
years.
b. To increase the brand awareness in the Indonesian market especially banking Industry.

5 Recommendations of Marketing Mix Strategy
a. Product Strategy strengthen

Some product strategies that may be implemented to penetrate into Indonesians market:
- Enhance product functionalities to more cater on Indonesias banking operation
industry e.g. functionality to allow language switching to Indonesian Language.

- Increase the R&D spending to improve the software to become more users friendly
and applicable with the current banking requirement and needs especially in debt
collections and recovery area.

b. Place Strategy
To establish a branch in Indonesia is currently a bit difficult due to the financial issue and
regulation imposed by Indonesias government. Thus, form a partnership with local
software company might be one of the solutions. However, this strategy should be started
with careful scanning of potential partner as the partner will become the representative of
the company in Indonesias market. The partnership must result in win-win situation for
both parties.

c. Promotion Strategy
As this software is business end product, the discount strategy might not really be
applicable. However, some discounts strategy can be implemented if a client buys
multiple sub modules to attract more sales occur.

Besides, advertising through special website which list down all the potential software
companies called Capterra can be one option of the promotion strategy.

A marketing email campaign which is Consultation based will attract the reader to find
more on the software or solution e.g. whitepapers or articles related with current issues in
debt collections and recovery area,

d. Pricing Strategy
As mentioned earlier, the pricing strategy becomes one of the challenges when
penetrating into Indonesias market as local competitors offer lower price. This challenge
might be overcome through the collaboration with local partner to acquire project thus it
can reduce the cost for support and communication. Thus, the price of the software can be
slightly lower.
6 Action Program
The action program of marketing plan can be started with acquiring a local software partner. A
partner has been identified and some marketing plan such as contacting the collection department
for each bank to arrange a meeting and presentation will be done by the local partner. The
planning to scan prospect banks will be done within 2 months and the list of qualified banks will
be finalized in 1 month. The presentation of Eminent Software will be done either by Webex or
the Eminent Softwares team will get down to Indonesia based on request by the Banks.

7 Control Strategy
The control strategy will be done quarterly based on number of presentations done and feedback
from the potential banks. However, the number of sales statistics can be only evaluated minimum
in yearly basis.

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Group Assignment - International Business

Eminent Collection System: A Malaysian Debt

GFMA6043: International Business

3 Market Situational Analysis..........................................................................................................5

3.1 Indonesians Banking Industry...............................................................................................5

3.2 Market Segment.....................................................................................................................9

3.3 Market Size and Growth......................................................................................................10

3.4 Competition Analysis...........................................................................................................11

3.5 PEST Analysis......................................................................................................................12

3.6 SWOT Analysis....................................................................................................................20

3.7 Porters 5 Forces...................................................................................................................24

3.7.1 Threats of New Entrants................................................................................................24

3.7.2 Threats of Substitute Products.......................................................................................25

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3.7.3 The Bargaining Power of Buyers..................................................................................25

3.7.4 The Bargaining Power of Suppliers...............................................................................25

3.7.5 Rivalry among existing Firms.......................................................................................25

5 Recommendations of Marketing Mix Strategy...........................................................................26

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will impact on the survival and growth of the bank.

Management processes in place.

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catch 20% of the market share in 2016.

a. Debt Collection Module

more than 15 clients in lending institution in Malaysia and 2 clients in India.

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3 Market Situational Analysis

3.1 Indonesians Banking Industry

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the investment climate. (Indonesia Investment, 2016)

imports amid persistent low commodity prices.

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currently. (Bank Indonesia, 2016)

0.4%, respectively. (Otoritas Jasa Keuangan, 2015).

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3.2 Market Segment

rate is not less than 2%. Based on Dwiyapoetra (2012), Indonesians

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selected is about 20 banks.

3.3 Market Size and Growth

utilization to manage their bad debts.

3.4 Competition Analysis

Eminent software proposed.

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3.5 PESTEL Analysis

Indonesia is presently described by well-known power showed in parliamentary and presidential

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to increase the countrys GDP growth rate to 7% by 2017.

other currencies, has weakened.

Economy growth Poverty

An average of 5.9% pa economic People live below poverty line was

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IDR Exchange Rate Monetary & Fiscal Policy

Rupiah has been continuing to Central bank(BI) enforce tight

incorporated, this figure ascends to around 80% of Indonesia's aggregate populace,

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so on - between both people than there are likenesses.

facilitated by the National Family Arranging Planning Board (NFPCB), an administration

information from the World Bank.

Population Gender Inequality

Indonesia is the top 4 populous Gender inequality index is 0.500 of

Socio Economic Socio culture

Manageable FDI and