| Summary: | This thesis attempts to analyze the formulation strategy of Pacific Royale Airways
to entered the airline industry in Indonesia. The purpose of analysis in this thesis
is to identify the external and internal factors in airline industry to illustrate the
characteristics of airline industry , and formulate appropriate strategies to enhance
the competitiveness of Pacific Royale Airways to entering the airlinet industry in
Indonesia. PEST analysis and Five Competitive Factors of Industry
Competitiveness by Michael Porter (1979) is used to analyze the external factors,
while for internal factorsis used Value Chain analysis. For the Pacific Royale
Airways�s formulation strategy is used SWOT analysis. The data collection in this
study are using the interview to the interal of Pacific Royale Airways and several
experts in aviation industry. In addition it also conducted the questionnaires and
secondary datasources that support this study. The results of the analysis in this
thesis, explains that the stable political conditions and increased of GDP growth in
Indonesia led the airline industry in Indonesia of 12.7% and also change the
lifestyle in movement. Besides the results of the Five Forces Porter analysis are
threat of new entrants and threat of substitute products is low, while the intensity
of competition between the players, the bargaining power of suppliers and
bargaining power of buyers is high. With outsourcing applied in supporting
activities and doing service level agreement with the supplier of Pacific Royale
Airways, the profit is expected to increase to 7%. While the results of the SWOT
analysis as a tool of strategy formulation for Pacific Royale Airways is
implementing strategies that support an aggressive strategy to increase the market
share and the number of the aircraft that being used as a production tools and
improve the service to customers.
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