BankPOS' strategic alliance with PT Pos Indonesia in October 1997 has changed the bank's strategic course from previously relying on corporate banking towards focusing on retail banking.

.With the combination of PT Pos Indonesia's large distribution network, PT Telekomindo's resources in information technology, and BankPOS' competence in the banking industry, the alliance provides a powerful platform to enter the highly competitive retail banking industry.

.The unfortunate economic crisis that hit Indonesia in 1997 has profoundly changed the market conditions, banking industry and overall competitive landscape. Around 80 millions of the population are estimated to live below the poverty line, whilst 13 million out of 90 million total workforce are expected to become unemployed by December 1998. The situation has directly impacted the retail banking in general and saving account market in particular.

.As a result of social, political and economical changes, BankPOS' initial business strategy of focusing on medium to upper low segment of the market for its funding mobilization was revisited and responded accordingly to ensure the achievement of BankPOS' objectives. BankPOS needs particularly to reposition itself from focusing on medium to upper low market segment in saving account towards medium to upper segment.

.In the process, some critical analysis was conducted so that a better understanding of saving account market, as well as BankPOS' background and position in the market were reached. The analysis encompassed the total market, Michael Porter's Five Forces Model, competitors, BankPOS' saving account, ATM transactions, transaction cost, as well as BankPOS' advertising and promotion analysis.

.To have a better understanding on the medium to upper market segment, a market survey was conducted by giving questionnaires to students at Institut Pengembangan Manajemen Indonesia (IPMI) as the main respondents. The survey's results were used as a gauge in crafting the strategy redefinition.





.Finally, some basic recommendations are proposed based on redefinitions of BankPOS' strategies particularly in mobilizing its flagship product: saving account.



Research Location: PT Bank Pos

Supervisor: Hadi Satyagraha Ph.D.

Accepted on 9 January 1999



For IPMI Internal -- Read at Library only