The Ongko Furniture Case: How to Stay Competitive in the Global Marketplace

1. Introduction

The globalization of business brought with it new challenges for small to medium enterprises (SMEs) like Ongko Furniture. They now have to compete with not just the other firms in their own country, but also with multinational corporations (MNCs) that have the resources and scale to operate in multiple countries. Internal factors like technology and business model have to be updated to meet the new challenges, while external factors like workforce and capital also need to be managed carefully.

2. The Ongko Furniture Case

Ongko Furniture is a small family-owned business based in Indonesia that produces wooden furniture for the domestic market. It was founded in 1972 and has since grown to become one of the leading furniture manufacturers in the country, with over 500 employees and annual sales of over $50 million. However, the company is now facing increasing competition from both MNCs and other local firms, as well as higher costs due to rising wages and raw material prices. In order to stay competitive, Ongko Furniture needs to reformulate its business model and develop a new production strategy that will allow it to produce high-quality furniture at a lower cost.

3. Analysis of Internal and External Factors

3.1 Internal Factors

3.1. Technology
One of the main internal factors that Ongko Furniture needs to address is its technology. The company currently uses outdated methods of production that are not only inefficient, but also limit the designs that can be produced. As a result, Ongko Furniture is not able to produce furniture that is as stylish or modern as what its competitors are offering. In order to stay competitive, the company needs to invest in new production technologies that will allow it to create more sophisticated designs while also reducing costs.

3. 1.2 Business Model

Another internal factor that needs to be addressed is Ongko Furniture’s business model. The company currently relies heavily on manual labor for its production, which makes it difficult to scale up operations without incurring significant additional costs. In order to stay competitive, Ongko Furniture needs to develop a more automated production process that will allow it to increase output without sacrificing quality or increasing costs too much. Additionally, the company needs to find ways to reduce its reliance on raw materials by using more recycled or sustainable materials in its products. And finally, changes need to be made in how products are marketed and sold in order for Ongko To penetrate into new markets beyond its currently limited reach. These internal factors must be reformed in order for the company to remain viable against an increasingly competitive landscape both domestically and globally…. */

In today’s business environment, globalization has become an inescapable reality for small to medium enterprises (SMEs) like Ongko Furniture. To stay competitive in the global marketplace, these firms must find ways to reformulate their business models and adapt their production strategies. In this essay, we will analyze the case of Ongko Furniture and provide recommendations on how the company can update its technology, business model, and product production strategy.

3. 1 Internal Factors

3.1. Technology

One of the main internal factors that Ongko Furniture needs to address is its technology. The company currently uses outdated methods of production that are not only inefficient, but also limit the designs that can be produced. As a result, Ongko Furniture is not able to produce furniture that is as stylish or modern as what its competitors are offering. In order to stay competitive, the company needs to invest in new production technologies that will allow it to create more sophisticated designs while also reducing costs.

3. 1.2 Business Model

Another internal factor that needs to be addressed is Ongko Furniture’s business model. The company currently relies heavily on manual labor for its production, which makes it difficult to scale up operations without incurring significant additional costs. In order to stay competitive, Ongko Furniture needs to develop a more automated production process that will allow it to increase output without sacrificing quality or increasing costs too much. Additionally, the company needs to find ways to reduce its reliance on raw materials by using more recycled or sustainable materials in its products… And finally, changes need to be made in how products are marketed and sold in order for Ongko To penetrate into new markets beyond its currently limited reach. These internal factors must be reformed in order for the company to remain viable against an increasingly competitive landscape both domestically and globally….

3. 2 External Factors

3.2.1 Workforce

One of the main external factors that Ongko Furniture needs to consider is its workforce. The company currently employs a large number of manual laborers, which limits its ability to reduce costs in the face of increasing wages. In order to remain competitive, Ongko Furniture needs to find ways to maximize the productivity of its workforce by investing in new technologies and training programs. Additionally, the company needs to explore alternative sources of labor such as outsourcing or using temporary workers.

3. 2.2 Capital

Another external factor that Ongko Furniture must take into account is its capital structure. The company currently has a large amount of debt, which makes it difficult to finance new investments or expansions. In order to stay competitive, Ongko Furniture needs to focus on strengthening its balance sheet by paying down debt and raising new equity. Additionally, the company needs to make sure that its cash flow is sufficient to cover its operating expenses… And finally, Ongko Furniture needs to consider alternative sources of financing such as venture capital or private equity.

4. Reformulating the Business Model

In order to stay competitive in the global marketplace, Ongko Furniture needs to reformulate its business model. The company currently relies heavily on manual labor for its production, which makes it difficult to scale up operations without incurring significant additional costs. In order to stay competitive, Ongko Furniture needs to develop a more automated production process that will allow it to increase output without sacrificing quality or increasing costs too much. Additionally, the company needs to find ways to reduce its reliance on raw materials by using more recycled or sustainable materials in its products… And finally, changes need to be made in how products are marketed and sold in order for Ongko To penetrate into new markets beyond its currently limited reach. These internal factors must be reformed in order for the company to remain viable against an increasingly competitive landscape both domestically and globally….

5. Developing a New Product Production Strategy

In addition to reformulating its business model, Ongko Furniture also needs to develop a new product production strategy. The company currently uses outdated methods of production that are not only inefficient, but also limit the designs that can be produced. As a result, Ongko Furniture is not able to produce furniture that is as stylish or modern as what its competitors are offering. In order to stay competitive, the company needs to invest in new production technologies that will allow it to create more sophisticated designs while also reducing costs… And finally, Ongko Furniture needs to focus on product innovation in order to create new items that customers will want to buy… These initiatives will allow the company to stay competitive in the global market and maintain its position as a leading furniture manufacturer in Indonesia.

6. Strengthening the Capital Structure

Another external factor that Ongko Furniture must take into account is its capital structure. The company currently has a large amount of debt, which makes it difficult to finance new investments or expansions. In order to stay competitive, Ongko Furniture needs to focus on strengthening its balance sheet by paying down debt and raising new equity… And finally, Ongko Furniture needs to consider alternative sources of financing such as venture capital or private equity… These initiatives will help the company maintain a strong capital structure and support its growth in the future.

7. Maximizing the Productivity of the Workforce

One of the main external factors that Ongko Furniture needs to consider is its workforce. The company currently employs a large number of manual laborers, which limits its ability to reduce costs in the face of increasing wages. In order to remain competitive, Ongko Furniture needs to find ways to maximize the productivity of its workforce by investing in new technologies and training programs… Additionally, the company needs to explore alternative sources of labor such as outsourcing or using temporary workers… These initiatives will help Ongko Furniture keep its labor costs under control and allow it to remain competitive in the global market.

8. Conclusion

The globalization of business has brought new challenges for small to medium enterprises like Ongko Furniture. To stay competitive in the global marketplace, these firms must find ways to reformulate their business models and adapt their production strategies. In this essay, we have analyzed the case of Ongko Furniture and provided recommendations on how the company can update its technology, business model, and product production strategy. By implementing these changes, Ongko Furniture will be able to stay competitive in the global market and continue to grow as a leading furniture manufacturer in Indonesia.

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