Investigating the Service Quality Improvement Strategy at PT. Kereta Api Indonesia (PERSERO) Divre I North Sumatera, Indonesia

Hamidah Hamidah; Harmein Nasution; Iskandarini Iskandarini

doi:10.56225/finbe.v2i2.223

Authors

Hamidah Hamidah Department of Management, Sekolah Pascasarjana, Universitas Sumatera Utara, Indonesia
Harmein Nasution Department of Management, Sekolah Pascasarjana, Universitas Sumatera Utara, Indonesia
Iskandarini Iskandarini Department of Management, Sekolah Pascasarjana, Universitas Sumatera Utara, Indonesia

DOI:

https://doi.org/10.56225/finbe.v2i2.223

Keywords:

internal and external factors, service quality, strategy, SWOT analysis

Abstract

The public continues to place a high demand on the Indonesian train as a mode of transportation. However, the fact that there is a train does not guarantee dominance over other transportation such as planes, buses, and other modes of transportation. The rail transportation mode is lacking in making improvements through the provision of appropriate service quality that encourages the public to switch to using the train. This study aimed to identify the factors that comprise the strengths, weaknesses, opportunities, and threats as well as to design strategies to improve service quality at PT. Kereta Api Indonesia (Persero) Divre I North Sumatra. This study used a qualitative method with descriptive techniques, such as data reduction, data presentation, and the conclusion of SWOT analysis. Based on the results of this study, it can be concluded that the Internal Factors Matrix (IFAS) and External Factors Matrix (EFAS) have several strength factors, namely safety, variations in ticket prices, skills or abilities, and facilities. Meanwhile, the weakness factors are facilities and infrastructure, public services, service performance, and timeliness. Opportunity factors are consumer satisfaction, comfort, passenger capacity, and technology. Furthermore, threat factors for the company include competition among modes of transportation, more efficient price competitiveness, consumer confidence, and insurance. These findings show that the quality of service in the company PT. Kereta Api Indonesia (Persero) Divre I North Sumatra is in quadrant I with a very favorable strategic planning situation. This company also has opportunities and strengths that allow it to take advantage of existing opportunities. The strategy that must be applied in the current conditions is to promote an aggressive growth policy (Growth Oriented Strategy).

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