Application of Business Model at PT. ABC – A Learning Case from a Construction Service Company

PT ABC's performance until December 2022 has been supported by several projects. Development projects in Indonesia are of significant scale, as evidenced by the large number of works, such as the railroad and toll road improvement projects, among others. To meet the specific needs of this activity, PT ABC has risen to the challenge by building several precast concrete plants in various locations in Java. Considering various aspects, including uncertain conditions such as price volatility, demand trends, and other factors that affect the production process, as well as potential operational losses, the Canvas Business Model analysis method has been used to test the shape and business model of PT ABC. Currently, the precast concrete industry is facing increasing external and internal threats, emphasizing the need for more cost-effective production systems and production schedules. One emerging threat is the practice of renting formwork kits instead of selling precast concrete, allowing contractors to produce it on-site at a lower cost with no distribution costs. The purpose of this research is to find out whether the applied business model allows the company to grow in the long term and whether there are any current challenges that must be faced. The designed Canvas Business Model can function as a decision support and guideline, guiding operations to ensure proper implementation and control. In addition, it helps in managing strengths and weaknesses by complementing analysis with SWOT to minimize potential losses and maximize productivity from emerging business opportunities. The findings of this study highlight the need for a business model for a company to achieve its vision, fulfill its mission, and survive in the present and the future.