A Conceptual Framework of Strategy Formulation for Aircraft MRO

Abstract

MRO industry has entered a new era marked by increasingly competitive competition and COVID-19 impact. MRO has several lines of business which needs a strategy that can restore the company's performance to survive, recover, and grow. This study was conducted with the objective of selecting potential strategy by identifying internal and external factors from airframe business and formulating strategy using David's model which includes input, matching, and decision stage. AHP was used to determine weight of internal and external factors based on the results of IFE, EFE, and CPM Matrix in the input stage. SWOT, IE, BCG, and SPACE Matrix in matching stages generated some strategic alternatives. Furthermore, at the decision stage, QSP Matrix was used to determine an alternative strategy. A new business model will be applied using New Business Model Canvas. The expected result is to recommend the potential strategy in the business airframe sector.