Analysis of Business Resuscitation Strategy: PT Anugerah Bumi Sinergi in Gresik After Market Expansion Failure

PT Anugerah Bumi Sinergi is a company engaged in coal trading, and in 2023, it attempted to expand into the Gresik area of East Java. However, due to several obstacles, the expansion failed, and the company was compelled to cease operations. This study aims to develop a business resuscitation strategy to revive PT Anugerah Bumi Sinergi following a market expansion failure. The research employs a qualitative approach, using methods including resources analysis and value chain activity, Porter’s five forces analysis, SWOT analysis, and the hexagonal restructuring model. Primary data were obtained through interviews with three informants who are employees of PT Anugerah Bumi Sinergi. The research findings indicate that the market expansion failure in Gresik was caused by a mismatch between the company’s strategy and local market characteristics, limitations in human resources, significant logistical challenges, and cash flow pressures due to delayed payment practices. To address these issues, PT Anugerah Bumi Sinergi formulated a business resuscitation strategy comprising product value repositioning; logistics efficiency through local partnerships and lean distribution; enhancement of human resources capacity; export market diversification; and financial structure reinforcement. This strategy aims to restore the company’s operations and enhance adaptive and sustainable competitiveness. 

Introduction

With its substantial contributions to state income, employment development, and energy dependability, the coal industry remains vital to Indonesia’s economy. Coal is a long-term energy resource that can supply electricity to both public and private sectors, with estimated reserves of 134.24 billion tons (Wiguna, 2024). Its strong position across a variety of industrial sectors has been maintained by its comparatively low production cost when compared to alternative energy sources (Brauerset al., 2020).

Indonesia’s coal industry has grown significantly in response to growing local and international energy demands, especially in the coal trading sector. Notwithstanding this expansion, the sector remains highly volatile due to changes in the price of commodities globally, stricter environmental laws, and changing international standards (Kanget al., 2020). For coal trading organizations, these factors have created complicated issues that require adaptable and robust methods to ensure continued operations.

Business expansion is a popular strategy to address these challenges. While it offers potential to increase market presence, such a strategy involves inherent risks, especially in the absence of thorough market research. For instance, the coal trading company PT Anugerah Bumi Sinergi, which was established in 2022, first achieved success in East Kalimantan. In 2023, the company used a different operating structure in an attempt to expand into Gresik, East Java. This change resulted in increased operational expenses, logistical challenges, and eventually an inability to generate profit. This was due to differing characteristics between the local markets of Gresik and Kalimantan. In the Kalimantan market, coal quality is the top priority. In contrast, the Gresik market places greater emphasis on visual aspects, such as coal color, which becomes a key factor in determining price. Coal with a reddish hue tends to be undervalued. As a result, sales in Gresik were extremely slow, leading the company to suffer significant losses. PT Anugerah Bumi Sinergi therefore exited the Gresik market and shifted its attention to bringing stability to its East Kalimantan operations.

The failed expansion emphasizes the importance of matching internal resources with external market dynamics. Subsequently, business recovery, which is defined as a methodical strategy to revive faltering companies via initiatives such as financial reengineering, organizational restructuring, innovation, or strategic repositioning (Hadi & Supardi, 2020), emerged as a relevant course of action. Among various resuscitation approaches, the reconstruction method is notable for enabling firms to improve internal performance and strengthen resilience against external shocks. This is particularly relevant in industries like coal trading, which face both operational and regulatory volatility. In the coal trading industry, similar resuscitation strategies have also been implemented by other companies, including product portfolio diversification by PT Petrindo Jaya Kreasi Tbk (CUAN), a company engaged in the mineral and energy mining sector (Hannanyet al., 2024).

Several scholarly studies have also investigated business failure and recovery through various strategic lenses. Strong competitive pressures can force businesses to reorganize by pursuing distinctiveness and operational efficiency, according to research using Porter’s five forces framework (Maurina & Rusdianto, 2024; Ding, 2023). However, these studies often focus on external market dynamics and provide little analysis of how internal capabilities match strategic responses. On the other hand, studies based on the SWOT framework, such as those by Zhang (2023) and Umar (2023), highlight how internal strengths and external threats interact to shape strategy. These studies, however, frequently fail to offer sector-specific, practical advice. Organizational structure, human resources, business portfolio, governance, systems, and corporate values are all included in the more comprehensive, six-dimensional hexagonal restructuring model, which was initially proposed by Tiffani and Wandebori (2020) and later improved by Hafizh and Wandebori (2024). However, its application has largely been restricted to state-owned enterprises, which leaves room for more empirical research in private industries such as energy and mining.

Given the gaps in the literature and the urgent need for a thorough restructuring strategy following failed expansion attempts, this study utilizes an integrated framework that combines four analytical tools: the hexagonal restructuring model, Porter’s five forces, SWOT analysis, resource analysis, and value chain activities. This multifaceted approach provides a strategy roadmap in line with the unique circumstances of the coal trading business by enabling a comprehensive assessment of both internal capabilities and external challenges. Additionally, using this integrated approach in the case of PT Anugerah Bumi Sinergi offers useful insights into the field of business recovery, particularly for mining and energy companies that are struggling with the fallout from unsuccessful expansion. Therefore, the objective of this study is to analyze the company’s internal and external environment, identify the causes of the market expansion failure in Gresik, and formulate strategies that can be implemented to support the company’s business resuscitation process.

Literature Review

Market Expansion

Market expansion is a corporate strategy for growth that aims to increase revenue and competitive advantage by taking current or new products into previously untapped geographic areas or market segments. It involves extensive market research, consumer analysis, and tailored marketing to meet target market needs (Savitriet al., 2024). Implementation methods include the establishment of new sales offices, production facilities, or global distribution centers. Although crucial for attaining sustainable growth amid fierce global competition, market expansion is not without risks. Failure may result from inadequate research, insufficient understanding of local consumers’ preferences, internal limitations, regulatory issues, or inadequate distribution, and may lead to underperformance or financial losses (Choet al., 2023).

Business Resuscitation

Business resuscitation is the strategic revival of a business on the brink of failure, most commonly characterized by falling revenues, liquidity problems, or market share loss. It entails discovering fundamental causes such as flawed business models, market changes, or internal mismanagement and applying corrective measures such as restructuring, innovation, market repositioning, and financial strengthening (Hadi & Supardi, 2020). Business resuscitation focuses not merely on short-term recovery but also long-term viability by rejuvenating the company’s core competencies. One such example is the failed East Kalimantan expansion to Gresik, which highlights the importance of synchronizing strategy to local conditions. Revival in this case involved reassessing market characteristics, simplifying distribution points, and retreating from unprofitable outlets. Effective resuscitation requires evidence-based strategies, adaptability, and capable leadership to turn setbacks into accelerated growth (Hadi & Supardi, 2020).

Internal Environmental Analysis

Internal environmental analysis is an important process to determine a firm’s strengths and weaknesses by assessing its resources and value chain activities, the basis for competitive advantage (Hittet al., 2019). Resource scanning includes tangible assets like manufacturing units, machines, and capital, and intangible assets like brand reputation, intellectual capital, organizational culture, and employee knowledge. The resources must be valuable, scarce, impossible to imitate, and not substitutable in order to create a sustained competitive advantage. Value chain analysis examines how each organizational activity contributes to added customer value and distinguishes between primary activities (inbound logistics, operations, outbound logistics, marketing and sales, after-sales service) and support activities (infrastructure, procurement, human resources, and technology development). This analysis helps companies increase operational efficiency and identify areas for differentiation or cost leadership in competitive environments (Hittet al., 2019).

External Environmental Analysis

External environmental analysis identifies opportunities and threats in the macro, industry, and competitive environment of a firm. Porter’s five forces framework is used in this research to identify industry attractiveness and competitive intensity, both of which influence strategy formulation (Porter, 2008). The five forces include: the threat of new entrants, determined by barriers to entry; bargaining power of suppliers, influenced by input dependence and supplier concentration; the bargaining power of buyers, as shaped by their price sensitivity and bargaining leverage; the threat of substitute products or services that serve essentially similar functions; and rivalry among existing competitors, driven by innovation and technological change. This evaluation helps determine whether an industry is attractive (more profitable) or unattractive (less profitable) and informs strategic decisions to enhance the competitive standing of a firm.

SWOT Analysis

SWOT analysis is a strategic management tool used to identify and analyze a company’s internal strengths and weaknesses, as well as external opportunities and threats, in order to build effective strategies (Umar, 2020; Kotler & Armstrong, 2018). It helps organizations understand their position in the market and design actions that utilize strengths and opportunities while overcoming weaknesses and threats. Strengths refer to internal strengths that provide competitive advantage, whereas weaknesses are internal limiting factors that diminish performance. Opportunities are favorable external events such as market trends or new technologies, while threats include external events such as new competitors or legislative changes. To organize the analysis, tools such as EFAS (External Factor Analysis Summary) and IFAS (Internal Factor Analysis Summary) are used to analyze and summarize external and internal factors influencing strategic decisions (Umar, 2020).

Hexagonal Restructuring

Hexagonal restructuring is a strategic approach to reorganizing a business for greater adaptability and growth, consisting of six stages. It begins with identifying the perception gap between the company’s actual and perceived value. The subsequent stage is operating improvement, focusing on efficiency and productivity (Hittet al., 2019). The third stage involves disposing of non-productive assets to streamline focus. Then, the company seeks new growth opportunities through innovation or market expansion. In the fifth stage, financial engineering is applied to strengthen financial structure and valuation. Finally, the maximum opportunity stage integrates all efforts to maximize value and support sustainable growth. This method allows companies to shift from survival strategies to long-term value creation through structured transformation (Tiffani & Wandebori, 2020).

Conceptual Framework

This theoretical construct enables a structured approach to examine market growth failures and transform them into effective recovery and growth strategies. It considers the challenges faced by PT Anugerah Bumi Sinergi, such as organizational misalignment issues, volatility in the coal market, and external disruptions in East Java, to guide the recovery process. Environmental analyses based on internal resource audit, value chain processes, and Porter’s model are used to define the company’s strategic position. SWOT analysis identifies key strengths, weaknesses, opportunities, and threats, which are, in turn, realized through the six pillars of attention of the hexagonal restructuring model: gaps in perception, streamlined operations, removal of non-productive assets, new opportunities for expansion, financial engineering, and opportunity maximization. This combined methodology forms a strategic foundation for profitable market re-entry and future growth (Fig. 1).

Fig. 1. Conceptual framework.

Materials and Methods

Data Collection

The study applied qualitative research based on comprehensive interviews with three strategic informants who hold strategic decision-making roles in PT Anugerah Bumi Sinergi. These were the Chief Operating Officer (COO), Chief Financial Officer (CFO), and General Manager of Operations, individuals with direct involvement in the restructuring decisions within the company. Each informant was selected using a purposive sampling approach, focusing on data-rich respondents capable of providing insights into internal operations, financial matters, and strategic countermeasures. To ensure methodological depth, interview guides were semi-structured to allow for follow-up questions while maintaining uniformity of interviews. All interviews were audio-recorded, transcribed, and cross-checked with secondary documents such as company reports and financial summaries to enhance the credibility of the findings.

Data Analysis

This study adopted a structured qualitative analysis using five established frameworks, including resource analysis and value chain activity approach, analysis of the company’s external environment through Porter’s five forces, SWOT analysis, and the application of the hexagonal restructuring model to comprehensively understand the business resuscitation strategy. The research methodology was carried out as follows:

Analysis of internal resources and value chain activities provided the foundational understanding of PT Anugerah Bumi Sinergi’s strengths and weaknesses. Through resources analysis, tangible and intangible assets such as financial capital, technological capabilities, reputation, and human resources competencies were identified as potential sources of competitive advantage (Hittet al., 2019). Concurrently, a review of value chain activities, including marketing and sales, operations, outbound logistics, inbound logistics, and after-sales services, helped demonstrate how each function added to the creation of overall value and pinpoints particular operational areas that needed to be improved. The study subsequently moved on to examine external factors following this internal evaluation.

The external environment was analyzed using Porter’s five forces framework to evaluate market competition and external threats and opportunities. By assessing the threat of substitute products, the bargaining power of suppliers and buyers, the threat of new entrants, and the level of industry rivalry (Porter, 2008), PT Anugerah Bumi Sinergi was better positioned to discern strategic opportunities from potential impediments to recovery.

A SWOT matrix, which revealed PT Anugerah Bumi Sinergi’s primary strengths, weaknesses, opportunities, and threats, was then created by combining the knowledge gathered from the external market assessment with the internal value chain analysis (Puytet al., 2023). Designing a restructuring plan that takes into account the company’s internal capabilities and external difficulties, along with establishing clear priorities for the use of the hexagonal restructuring model, were the two primary goals of this integration.

To provide conceptual clarity and methodological rigor, this study explicitly adopted the hexagonal restructuring model as the final step of analysis. The model was adopted due to its multidimensionality, which aligns with the multifaceted restructuring needs of PT Anugerah Bumi Sinergi. As opposed to conventional restructuring models with their limited focus on either financial engineering or cost cutting, the hexagonal model addresses organizational rejuvenation from six strategic directions: closing perception gaps, improving operational performance, divesting underperforming assets, pursuing new growth opportunities, conducting financial engineering, and unlocking strategic potential (Hittet al., 2019). Each of these six elements was operationalized based on interview findings. For instance, ‘perception gaps’ referred to mismatches between management expectations and field-level operational realities. ‘Operational improvement’ referred to the need for digitization and process streamlining, while ‘asset divestment’ involved divesting underutilized or loss-incurring business units. ‘Growth opportunities’ encapsulated informant perceptions of market re-entry, and ‘financial engineering’ encapsulated liquidity issues expressed by the CFO. Finally, ‘strategic optimization’ involved casting business units within an integrated recovery agenda.

To address concerns of analytical completeness, each dimension was further refined using axial coding to match themes from interview data and external inputs. Although formal implementation of the strategy was outside the study’s scope, a validation step was conducted by presenting the summarized strategic directions to all three informants in a feedback session.

By explicitly mapping all the theoretical components to the interview material and aligning the sequence of analysis with the business context, the method provides a sound foundation for interpreting complex restructuring processes. This synthesis of data and theory enhanced the analytic transparency of the study and overcame previous reservations concerning conceptual justification. To further support clarity, the analytic process was presented in order, from internal analysis to external mapping, to combined diagnosis and strategic development, demonstrating how qualitative findings are translated into actionable strategy development (Hittet al., 2019).

Results and Discussion

Results

The rehabilitation efforts of PT Anugerah Bumi Sinergi following its failed market expansion into Gresik, East Java, were examined in this study. Using an integrated framework that incorporated Porter’s five forces, SWOT analysis, resource and value chain analysis, and the hexagonal restructuring model, it analyzed the strategic challenges from both internal and external perspectives, pinpointed the root causes of the failure, and created a revitalization plan. The research findings are structured thematically in alignment with the formulated research questions.

Market Analysis

Market analysis was divided into three main components: segmentation, business market, and positioning. The primary aspect of market analysis was segmentation, which involved dividing the market into smaller segments based on certain characteristics. The decision to open a new market segment in Gresik was based on the differences in market segmentation between Kalimantan and Gresik. The key difference was in the distribution chain and delivery responsibilities. In Kalimantan, PT Anugerah Bumi Sinergi focused only up to the port with trader partners, whereas in Gresik, the company targeted end-users directly and handled logistics up to the customer’s location.

The second aspect, the business market, refers to a market where a company sells goods or services to another company. In Gresik, the business market consisted of factories, both small and large, as well as private power plants. Coal from Gresik was also shipped to Central Java, indicating that Gresik was not merely a consumption center but also a distribution hub. In addition, the business market in Gresik placed strong emphasis on the visual appearance of the coal.

The final aspect of market analysis is positioning, which refers to how a company places its brand in the minds of consumers. PT Anugerah Bumi Sinergi positioned itself in the Gresik market as a coal trader that marketed directly to end-users. The following is a summary of the results of the market analysis.

Internal and External Analysis

Internal analysis aimed to examine PT Anugerah Bumi Sinergi’s business resuscitation strategy following the failure of its market expansion in Gresik. The internal analysis was divided into two aspects: resources and value chain activity. Overall, the resource aspect of PT Anugerah Bumi Sinergi indicates significant challenges, particularly in financial indicators and human resources development. However, the company still demonstrates potential for recovery through the strength of its strong reputation and stable operational systems. To support the business resuscitation strategy, improvements in financial flexibility and strengthening of internal capacity, especially in human resource competencies, are necessary.

The value chain activity aspect is equally important to the company’s recovery. The company is strong at inbound logistics, especially through long-term coal supply agreements. Its reliance on a single mining source, however, made it vulnerable. Once the mine’s operating license was revoked, the company was forced to procure coal from alternative sources that failed to meet market expectations. Since the transportation in Gresik was more complicated and costly, it was challenging to duplicate Kalimantan’s logistical efficiency. Despite the deployment of a field team, communication failures resulted from informal coordination. Additionally, when the business switched from a barge-based system to truck distribution, outbound logistics weakened, which led to a drop in efficiency. In marketing and sales, the failure to understand the visual preferences of the Gresik market led to product mismatch despite meeting technical specifications. Although its after-sales service was considered professional, the company could not compensate for initial product shortcomings. The failure in Gresik highlights the importance of comprehensive integration within the value chain, thorough market research, and the adjustment of distribution and coordination strategies to support the success of market expansion into new territories.

The external analysis aimed to identify possibilities and dangers in the larger macroeconomic, industry, and competitive landscapes. In general, the external environment of PT Anugerah Bumi Sinergi offers both great opportunities and substantial obstacles. The firm must manage macro-level risks, such as a decline in local demand and changing patterns in the global energy industry, but its strengths in networking and logistics provide a strong foundation for maintaining competitiveness. A resuscitation strategy focusing on cost efficiency, strengthening customer relations, and adopting technology and market diversification becomes a crucial step for PT Anugerah Bumi Sinergi to remain adaptive and competitive in the future.

SWOT and TOWS Analysis

PT Anugerah Bumi Sinergi was equipped with various internal strengths and weaknesses that highly influenced the business recovery process following the failed expansion. A summary of the most influential internal factors affecting PT Anugerah Bumi Sinergi’s strategic position, based on interview results and field findings, is presented in Table I.

Table I. IFAS Matrix Swot Analysis of PT Anugerah Bumi Sinergi

No	Question	Significance	Weight value	Rating	Weighted value
	Strength
1	What internal resources (capital, human resources, technology) are the main strengths of PT Anugerah Bumi Sinergi in sustaining its business after the failed expansion?	2.5	0.15625	9	1.40625
2	Which aspects of PT Anugerah Bumi Sinergi’s operational system or business model are still functioning effectively and efficiently today?	3	0.1875	8	1.5
3	What are PT Anugerah Bumi Sinergi’s competitive advantages compared to other players in the coal trading industry, particularly in Kalimantan?	2.5	0.15625	8	1.25
	Weakness
4	What internal weaknesses were the main causes of the failed expansion into Gresik?	3	0.1875	3,5	0.65625
5	Were there any competency or training gaps among the human resources during the expansion process?	2	0.125	2	0.25
6	Were there any structural or organizational barriers that slowed down strategic decision-making during the expansion?	3	0.1875	4	0.75
Total IFAS					5.8125

According to the results of the IFAS matrix, PT Anugerah Bumi Sinergi has a number of significant internal strengths that are adequate to offset its present shortcomings. With a total score of 5.8125, the business demonstrates a high degree of internal readiness to maintain current operations and facilitate any future expansion. Furthermore, following the failed expansion into the Gresik region, PT Anugerah Bumi Sinergi also rediscovered its market potential in the Kalimantan region. Nevertheless, the company acknowledges several significant external threats that could potentially hinder its recovery and expansion efforts. The following EFAS matrix provides an overview of external elements that may pose either opportunities or dangers to PT Anugerah Bumi Sinergi (Table II).

Table II. EFAS Matrix Swot Analysis of PT Anugerah Bumi Sinergi

No	Question	Significance	Weight value	Rating	Weighted value
	Opportunity
1	Are there any potential markets or new demand segments that can be targeted after the withdrawal from Gresik?	2	0.125	7	0.875
2	How can PT Anugerah Bumi Sinergi leverage government regulations or policies related to energy and coal trading?	3	0.1875	9	1.6875
3	Are there opportunities for strategic partnerships with local stakeholders (regional governments, ports, distributors) to re-expand the market?	3	0.1875	9	1.6875
	Threats
4	What are the most significant external threats currently faced by PT Anugerah Bumi Sinergi in the coal trading industry?	3	0.1875	5	0.9375
5	How does the presence of major competitors or local players affect PT Anugerah Bumi Sinergi’s potential for re-expansion in the Java region?	2	0.125	2	0.25
6	Are there risks related to policy changes, price fluctuations, or environmental pressures that could hinder PT Anugerah Bumi Sinergi’s recovery strategy?	3	0.1875	5	0.9375
Total EFAS					6.375

The results of the EFAS matrix indicate that PT Anugerah Bumi Sinergi has substantial external opportunities to leverage in its business recovery and growth efforts. With a total score of 6.375, the company is considered to have a relatively strategic external position, although there are several threats that must be anticipated.

The subsequent stage was to create a SWOT analysis matrix quadrant diagram when the overall IFAS and EFAS scores had been determined. The tool plotted the company’s recognized strengths, weaknesses, opportunities, and threats to help visualize its strategic position (Fig. 2).

Fig. 2. SWOT analysis matrix quadrant diagram of PT Anugerah Bumi Sinergi.

The company’s coordinate point is positioned at (5.8125; 6.375), placing it in Quadrant I. This position indicates that PT Anugerah Bumi Sinergi has solid internal strengths while also operating in a fairly favorable external environment. The final stage of the SWOT analysis was the TOWS analysis related to the functional strategy. The TOWS matrix is an extension of the SWOT analysis, aimed at formulating more practical strategies by integrating the company’s internal and external factors (Table III).

Table III. Tows Matrix Swot Analysis of PT Anugerah Bumi Sinergi

	S-STRENGTH	W-WEAKNESS
TOWS MATRIX INTERNAL EXTERNAL	1. Extensive and strong business relationships and connections. 2. Competent and well-connected human resources. 3. Proven efficiency of the Free on Board (FOB) operational model. 4. Competitive advantage in supply chain management and access to local resources.	1. Insufficient number of human resources during the expansion. 2. Disproportionate workload. 3. Lack of formal human resources training or development.
O-OPPORTUNITY	STRATEGY-SO	STRATEGY-WO
1. Recovery and reinforcement of the core market in East Kalimantan. 2. Potential increase in exports to international markets (especially China), as global demand for coal recovers. 3. Strategic partnerships with mine owners and port (jetty) operators, providing price advantages and shipping slot efficiency. 4. Adjustment of selling prices in response to tax increase policies, which could present new margin opportunities if managed correctly.	1. Leverage business connections and networking HR to strengthen market share in Kalimantan. (S1, O1). 2. Utilize the efficiency of the FOB model and supply chain mastery to increase export margins to China. (S3, S4, O2). 3. Expand partnerships with ports and mines using strong business relationships to reduce costs and improve efficiency. (S1, O3). 4. Optimize responses to tax policies with business model flexibility. (S3, O4).	1. Utilize the market recovery opportunity to improve the HR structure and recruitment based on actual needs. (W1, O1). 2. Establish strategic partnerships with ports/mines to reduce workload pressure through logistics efficiency. (W2, O3). 3. Invest a portion of export margins in formal HR development. (W3, O2, O4). 4. Address competency gaps with field-based training. (W4, O1).
T-THREATS	STRATEGY-ST	STRATEGY-WT
1. High dependence on the export market, particularly China. 2. Global political issues (such as in China and the United States) as dominant factors influencing coal price volatility internationally. 3. Competition with competitors who have greater capital strength. 4. Risk of policy or regulatory changes that cannot be controlled.	1. Diversify export markets outside of China by leveraging supply chain control and FOB efficiency. (S3, S4, T1). 2. Utilize business networks to monitor and anticipate global political or policy changes. (S1, T2). 3. Strengthen price competitiveness and logistics services to face competitors with greater capital. (S3, S4, T3).	1. Reduce dependence on a single market by strengthening internal factors (restructuring HR and organizational structure). (W1, W4, T1). 2. Redesign the expansion strategy based on policy projections to avoid relying on market assumptions. (W3, T4). 3. Develop capital buffers and mitigation strategies to adapt to market fluctuations and competitive pressures. (W2, T2, T3).

Hexagonal Restructuring

There are six stages in the hexagonal restructuring process. The first stage is perception gap, which aims to identify the differences between the actual value of a company and how these values are perceived by its stakeholders (Hittet al., 2019). In the case of PT Anugerah Bumi Sinergi’s market expansion failure in Gresik, it was found that there was a mismatch between market demand and the company’s product offerings. A variety of tactics can be used to address this problem, such as reevaluating and realigning the business’s operations to better suit the needs of the local market, improving understanding of regional quality standards, creating a more adaptable strategic approach, identifying customer preferences, and customizing products to satisfy those needs. Additionally, a deeper analysis of consumer preferences regarding the visual aspects of the product, such as the color and texture of coal, should be conducted. Using valid and contextual market data will enable the company to make more precise strategic decisions regarding which products to market, while building a stronger value proposition by aligning products and marketing strategies with the company’s potential and capabilities. Operational improvements and reviews of past business approaches will help bridge the gap between offerings and market expectations.

The second stage in the hexagonal restructuring process is operating improvement, which focuses on increasing internal operational efficiency and effectiveness (Hittet al., 2019). The goal is to reduce costs, improve productivity, simplify processes, and enhance output quality. Two main challenges were identified: the complexity and length of the logistics process in Gresik, and a shortage of human resources (HR) along with a lack of workforce specialization. By streamlining logistics routes, partnering with regional logistics firms, and developing a more unified and integrated supply chain management system, PT Anugerah Bumi Sinergi could improve delivery efficiency and overcome these obstacles.

The subsequent phase involves the sale of non-productive assets, including assets that do not contribute to the company’s worth or that create a financial burden (Hittet al., 2019). This measure aims to lower expenses, increase liquidity, and concentrate resources on strategic assets. During the market expansion in Gresik, no non-productive or burdensome assets were identified. Therefore, PT Anugerah Bumi Sinergi did not dispose of any assets at this stage. All resources were deemed essential and contributed to the success of the expansion and business growth in Gresik. To ensure long-term business viability and diversify income streams, the following phase concentrates on finding and developing new growth prospects across various product lines or markets. Three major development prospects were identified at this stage: strengthening the company’s existing operations in East Kalimantan, reaching a wider audience through improved strategic alliances, and adjusting to regulatory shifts and reliance on export markets.

The fifth stage is financial engineering, referring to the use of creative financial strategies to strengthen the capital structure and increase company value. The goal is to enhance financial flexibility, improve financial ratios, and attract investors. PT Anugerah Bumi Sinergi faced several challenges that affect its financial position. At first, the firm suffered significant financial losses as a result of its failed Gresik expansion, which consumed nearly half of its working capital. The firm planned to explore refinancing measures to stabilize its finance and obtain fresh capital for its recovery. Additionally, limited liquidity and lack of financial flexibility posed obstacles, particularly in comparison to larger or more established competitors. The company must conduct a comprehensive evaluation of its projects and financing structure. Furthermore, operational costs, such as stockpile rental, salaries, and other operational expenses, remained disproportionately high relative to revenues. To mitigate this, the company must implement cost-efficiency strategies and reduce non-essential expenditures. Lastly, uncontrolled expenditures continued to burden the company’s finances. The company must minimize its monthly operational costs to remain operational and ensure business continuity.

The final stage in the hexagonal restructuring process is maximum opportunity, which refers to creating optimal opportunities to maximize the company’s value. This stage seeks to integrate all restructuring initiatives to create a more competitive, financially healthy, and future-oriented company. PT Anugerah Bumi Sinergi has identified four such opportunities: first, realigning its value proposition to better reflect local market needs and preferences; second, leveraging historical success as a stepping stone to strengthen the company’s identity and reputation; third, implementing financial restructuring not only for survival, but to create a more efficient, flexible, and investor-attractive capital structure; and fourth, building a partnership system based on trust and efficiency as the foundation for sustainable expansion. Below is the clarification aligned with the accompanying image, presented in paragraph format and directly corresponding to the contents of each hexagonal box in Fig. 3.

Fig. 3. Hexagonal restructuring of PT Anugerah Bumi Sinergi.

Discussion

Overview of Internal and External Environment

The internal and external environment analysis of PT Anugerah Bumi Sinergi provides a comprehensive overview of the company’s position in conducting its business operations, including the challenges and opportunities it faces. Internally, the resource-based view (RBV) approach by Wernerfelt (1984) and Aslamiyahet al. (2024) emphasizes the importance of physical, human, and intellectual resources as key determinants of competitive advantage. Interview findings confirm that PT Anugerah Bumi Sinergi experienced significant financial pressure due to the failure of its market expansion in Gresik, suffering losses of approximately 3–4 billion IDR, mainly caused by pricing imbalance and high operational costs. This financial limitation reflects a lack of resource slack, challenging the RBV assumption that firms with valuable, rare, and inimitable resources are inherently positioned for sustained advantage, especially when resource mobilization is constrained during market shocks.

Although the technology used by the company is considered industry standard (Hittet al., 2019), informants agreed that the failure was primarily due to a mismatch between the product and local market preferences. The company’s reputation remained intact thanks to its strong commitment to fulfilling business obligations (Daromeset al., 2023), which supports RBV’s recognition of reputation as an intangible resource contributing to competitive advantage. This finding was supported by informant statements that emphasized the company’s efforts to maintain supplier and buyer trust despite financial losses. However, weaknesses were found in human resources, as the company did not have internal training programs and heavily relied on individual experience. Data from interviews also revealed value chain activities such as logistics and distribution faced major challenges during the expansion, including supply disruptions and inefficiencies in inter-island logistics, which led to high distribution costs and market rejection due to visual mismatch with local coal preferences (Hittet al., 2019).

Externally, the analysis utilized Porter’s five forces framework (Porter, 2008), which indicates that entry barriers in the coal industry are high due to large capital requirements and the need for strong networks, providing PT Anugerah Bumi Seinergi with structural advantages. Informants noted that the bargaining power of suppliers is considered moderate to low, thanks to diversified partnerships with various coal miners. Meanwhile, the bargaining power of buyers is moderate due to varying demands based on their country of origin. The threat of substitute products such as renewable energy remains low in Indonesia, as implementation has not yet been significant and coal continues to be the dominant energy source. Industry rivalry is intense, with several major competitors; however, PT Anugerah Bumi Sinergi’s direct sourcing strategy improved cost efficiency and strengthened its competitive position. In the broader environment, Gresik’s local economy is driven by the manufacturing sector and is affected by declining consumer purchasing power, while the global energy transition has not significantly impacted domestic coal demand (Aslamiyahet al., 2024). Technological developments have not posed major challenges so far, although PT Anugerah Bumi Sinergi maintains an adaptive approach by selectively adopting digitalization initiatives to improve internal efficiency.

Factors Causing Market Expansion Failure of PT Anugerah Bumi Sinergi

The market expansion failure of PT Anugerah Bumi Sinergi in Gresik was caused by eight interrelated factors that led to significant financial losses, estimated at 3 to 4 billion IDR. First, the lack of market research resulted in a mismatch between the company’s strategy and local market preferences, particularly regarding coal quality perception, where buyers in Gresik prioritized visual appearance over technical specifications (Isnania & Daud, 2023). Second, there was a disparity between high purchase prices and the inability to sell coal at competitive rates. Third, the company faced high operational costs, including stockpile rental, employee wages, and other expenditures. Fourth, limited human resources forced employees to take on tasks beyond their core competencies, reducing efficiency and increasing the risk of errors (Laluyan & Dewi, 2020). Fifth, poor planning was evident from the lack of anticipation of local logistical challenges and market conditions. Sixth, weaknesses in logistics and supply chain management increased distribution complexity and costs, as coal had to be delivered directly to consumer factories rather than ports, unlike operations in Kalimantan. Seventh, the deferred payment system, which spanned one to two months, strained the company’s cash flow and required substantial capital reserves to maintain operations. Lastly, information failure, reflected in the absence of accurate market data and understanding of consumer behavior, further contributed to the strategic misalignment (Isnania & Daud, 2023; Laluyan & Dewi, 2020). These factors highlight the importance of thorough preparation, local market insight, and resource alignment in supporting successful market expansion.

Strategies to Support Resuscitation Process of PT Anugerah Bumi Sinergi

PT Anugerah Bumi Sinergi’s resuscitation strategy addresses key challenges from its expansion to Gresik by focusing on product-market mismatch, supply chain inefficiencies, limited human resources, export dependency, and financial strain. The product mismatch stemmed from the Gresik market’s aesthetic preferences, particularly coal color, which led to low acceptance despite the technical quality of the product. This issue was approached through local market remapping, enhanced product communication, and the strengthening of brand trust through transparent quality testing, as supported by Kotler and Keller (2016), as well as Maurina and Rusdianto (2024). In response, the company integrated its differentiation strategy by emphasizing premium coal products sourced directly without modification and by providing empathetic and personalized service, which collectively reinforced market credibility and reputation. Complex and costly logistics, compounded by unfavorable payment systems, were addressed through integrated supply chain improvements and strategic local partnerships. These efforts aligned with a cost leadership approach that involved eliminating intermediaries, applying the Free on Board (FOB) system, and competitive logistics bidding as described by Porter (1985). Human resources limitations were managed through selective recruitment and continuous training, which supported a service-based differentiation strategy as outlined by Becker and Huselid (2006). The company also reduced its export dependency, particularly on the Chinese market, by diversifying its market base and focusing on quality-driven product differentiation to penetrate premium segments in accordance with Grant (2016). Financial pressures resulting from expansion-related losses were mitigated through tighter cost control, enhanced liquidity management, and the development of internal capital buffers, as recommended by Ding (2023). By combining cost efficiency with service excellence, the company implemented a hybrid strategy that enhanced agility and responsiveness in a highly competitive industry. This integrated strategy exemplifies dynamic capabilities by fostering adaptability, encouraging innovation, and enabling the reconfiguration of internal systems in response to market volatility, consistent with the frameworks of Ahenkora and Adjei (2012) as well as Donaldsonet al. (2020).

Conclusion

The conclusions from the research on PT Anugerah Bumi Sinergi indicate that the company operates in a complex and challenging environment, both internally and externally. Internally, PT Anugerah Bumi Sinergi possesses advantages such as long-term partnerships with suppliers, adequate technological systems, and a positive reputation among business partners. However, the company faces several limitations, including a lack of financial flexibility, underdeveloped human resource programs, suboptimal logistics readiness for cross-regional operations, and weaknesses in marketing strategies and understanding local market preferences. Externally, based on Porter’s five forces analysis, PT Anugerah Bumi Sinergi holds a relatively strong position against the threat of new entrants and the bargaining power of suppliers but faces intense competition within the coal industry. Additionally, the external environment is influenced by national economic dynamics, the global energy transition, and rapid technological developments, all of which demand continuous adaptation by the company.

The failure of PT Anugerah Bumi Sinergi’s market expansion in Gresik was caused by a mismatch between the company’s strategy and the characteristics of the local market. The company failed to recognize that consumer preferences in Gresik differ significantly from those in Kalimantan, where visual aspects of coal, such as its color, are prioritized over technical specifications. This reflects a lack of in-depth and contextual market research prior to the expansion. Furthermore, limitations in human resources forced employees to take on roles outside their areas of expertise, negatively affecting operational effectiveness. The company also encountered more complex and costly logistics, particularly due to the need for direct distribution to customer sites, unlike the FOB model used in Kalimantan. Additionally, the local practice of deferred payments (ranging from one to two months) placed further pressure on the company’s cash flow and required a substantial capital buffer. These factors collectively indicate that insufficient planning and an inflexible strategy were the root causes of the failed expansion.

PT Anugerah Bumi Sinergi’s recovery strategy is implemented as a comprehensive and integrated effort to restore and stabilize operations following the challenges of market expansion. The strategy was formulated using a SWOT analysis, hexagonal restructuring, and a TOWS Matrix, along with a business strategy approach that includes product, logistics, human resources, export markets, and finance. In terms of products, the company applied a value proposition repositioning strategy to better align with local market expectations, particularly in Gresik, by adjusting visual aspects and ensuring verifiable quality. To overcome logistical challenges, the company developed local partnerships and adopted a lean distribution system to reduce costs, in line with the cost leadership principle. Regarding human resources, the company focused on needs-based training and selective recruitment to enhance performance. The export strategy emphasized market diversification and product differentiation based on quality transparency to reduce reliance on a single market, such as China. Financially, the company improved cost efficiency and built a capital buffer to strengthen resilience against market fluctuations.

Following the completion of this study, the researchers acknowledge several limitations, particularly the limited number of informants, restricted to only three individuals. This condition may lead to subjective bias and constrain the generalizability of the findings. Additionally, the use of a qualitative approach that heavily relies on the information provided by informants increases the risk of less objective interpretation. Therefore, future research is recommended to involve a larger and more diverse group of respondents, incorporate quantitative methods, and include analysis of macroeconomic factors to provide a more comprehensive understanding of the coal sector dynamics and to develop more effective recovery strategies.

Conflict of Interest

Conflict of Interest: The authors declare that they do not have any conflict of interest.