The written report attached was conducted to provide Multipolar with an analysis and proposal for defining the position in the market and preparing the competitive strategy for gaining the next competition. The report is intended to support Multipolar's objective to strengthen its position in terms of market share, profitabililty and competitiveness.

The analysis involves the general issues of the industry and the market, which Multipolar plays the role as a vendor of information technology. An adaptation of Michael Porter's "Five Competitive Forces" model was used to explore movements in the various competitive areas. The information technology market in banking is still promising with the annual growth predicted more than 20%. The existence of Multipolar in the market will be strong competitive advantage to keep their market position growing.



Currently, Multipolar is still the market leader in the government banks segment which does not need highly competence vendors in the banking industry to work with. It is caused that mostly government banks are hiring a reputable consultant to design and implement their information technology blue print. But in the next couple of years, information technology vendors competence in banking will be strongly demanded for all market segments, from small private banks to government banks, in line with stronger competition among banks.



Based on further evalutaion, using the value chain, we determined that Multipolar's internal process does not support the integrated value chain in delivering the services to customers. Therefore, we recommend the implementation strategy to involve all strategic business unit values to support Multipolar's whole internal process as a solid value chain.



Research Location: PT. Multipolar Corporation

Supervisor:

Accepted in: June 1996