Arica Dwi Susanto1, I Nengah Putra Apriyanto2
1Indonesian
Naval Technology College, STTAL, Bumimoro-Morokrembangan, Surabaya, Indonesia 60187
2 Indonesia Defense University Sentul,
Sukahati, Citeureup, Bogor,
West Java, Indonesia 16810
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ABSTRACT |
Keywords: AHP, SWOT, Strategy, Product
Marketing, Business. |
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The
development of companies in the digital era especially product business in
Indonesia is now increasingly prominent in complexity, competition, change,
and uncertainty so that the company's marketing and sales systems have not
reached a maximal capacity due to the lack of superior and appropriate
strategy. The researcher considered several alternatives using SWOT analysis
and the Analytical Hierarchy Process (AHP) method to overcome these problems.
The results showed that using the SWOT-AHP Analysis, it was found that the
Strength parameter got the highest score by 53% and Opportunity parameter by
21%. Through the SWOT sub-criteria, it was found that the Strenghts priority
were S2 (Registered patent) with a score of 0.53, S1 (New product) with a
score of 0.29, S3 (Mechanical technology) with a score of 0.28, respectively.
While weaknesses priority were W2 (in optimal product promotion) with a score
of 0.63, W1 (product not widely known) with a score of 0.37. In addition, the
Opportunities Priority were the order of O2 (market share's openness) with a
score of 0.52, O3 (More efficient products) with a score of 0.29, and O1
(Switching products from manual to automatic) with a score 0.19. And finally,
the Threats priority were T1 (raw material) with a score of 0.53, T2 (price
competition) with a score of 0.26 and T3 (product fraud) with a score of
0.21. The top priority of leading marketing strategy are by increasing
product quality by 39.3%, while the second priority is marketing cooperation
by 21.4%, the third is the pricing strategy by 20.5% and the last is
promotion by 14.8%. Publisher All rights reserved. |
INTRODUCTION
The development of companies in the digital era
especially product business in Indonesia is now increasingly prominent in
complexity, competition, change, and uncertainty especially now that the
Digital Age is making competition more complex
This
paper used some literature to support the research, for example paper with
title Strengths, Weaknesses, Opportunities And Threats (SWOT) Analysis On
Globacom Ltd
PT. X is a company that manufactures
products for household needs
Based on the existing problems as
mentioned above, the best and most appropriate way to determinate product
marketing excellence strategy is by considering several alternatives using SWOT
analysis and the Analytical Hierarchy Process (AHP) method.
This
Paper is organized as follows. Section 2 is review about the basic ship theory.
Section 3 would be about the result of the research and section 4 discussion of
research. Finally, while in section 5 we would present the conclusions of this
paper.
Material and methods
Developmental
Strategy
Marketing
Strategy
The success of a
predetermined strategy is largely determined by how much the level of suitability
of the strategy is with changes in the environment, competitors, and
organizational situation factors in formulating a strategy. In Conditions of
Strong Competition Position Strengthens the Power of Development.
a. Type of
Development Strategy
To find out its
competitiveness in every power, Porter advises organizations to use one of
three strategies: differentiation, cost leadership, or focus. Organizational
characteristics that can be associated with each strategy.
1. Differentiation
Strategy
2. New competitors
through customer loyalty that are difficult to overcome.
3. Focus
Strategy Leadership Strategy
b.
Formulating a Development Strategy
An
effective way to formulate a strategy is the five strengths and development
strategies.
Researching a number of organizations and stating that business-level
strategies are the result of five developmental strengths within the
organization. Five Porter Development strengths. The development forces that
exist within the organization and show the influence of internet technology on
each power.
These
forces help determine the position of the organization versus its competitors
in the industrial world.
1. New
potential competitors.
2. Bargaining
power of buyers
3. The
bargaining power of suppliers
4. Threat of
replacement output
5. Inter-competitor
competitors
Marketing strategy is
a way to achieve goals by knowing where we are and what goals will be achieved.
a.
The marketing mix is a combination of marketing
tools that can be used to affect and retain consumers
1. Product
2. Price
3. Place
4. Promotion
b. Production Strategy
Production strategy is an effort to
manage the use of resources or factors
of production such as labor, machinery, equipment, raw materials and so on
optimally in the process of transforming raw materials and labor into various
products or services
1. Selection
2. Planning
3. Operation
4. Supervision
5. Renewal
c.
Operational
Strategy
Operational strategy is a vision of
operating functions that establishes the overall direction or driving force for
decision making. This vision must be integrated with business strategies but
not always reflected in formal planning
1. Capacity and preparations
2. Quality
3. Dissemination
4. Marketing and operations
fig. Steps In The International Business
Strategy Formulation Process
SWOT
Analysis
SWOT analysis is
a strategic planning method used to evaluate strengths, weaknesses,
opportunities, and threats in a project or a business speculation
fig. Hierarchical structure of the SWOT
matrix
The use of an effective SWOT analysis provides 4
benefits for managers in creating marketing strategies; 1) simplicity: SWOT
analysis does not require special training or technical skills; 2) collaboration:
because of its simplicity, SWOT analysis encourages collaboration and
information exchange between managers from different functional areas; 3)
flexibility: it can enhance the quality of organizational strategy planning
even without marketing information systems; 4) integration: SWOT analysis can
be related to various sources of information
To analyze the determination of the strategy to be
clear, there are nine types of matrices that can be used namely as follows:
1. Matrix of External Factor Evaluation (EFE)
2. Matrix of Internal Factor Evalution (IFE)
3. Matrix of Competitive Profile (CP)
4. Matrix of SWOT
5. Matrix of Strategic Position and Action
Evalution (SPACE)
6. Matrix ofInternal-Exsternal (IE)
7. Matrix of Boston Consulting Group (BCG)
8. Matrix of Grand Strategy
9. Matrix of Quantitative Strategies Planning
(QSP)
SWOT Matrix
The tool used to compile the strategic factors of the
organization is the SWOT matrix. This matrix can clearly describe how the
external opportunities and threats faced by the organization can be adjusted to
the strengths and weaknesses it has. This matrix can produce 4 sets of possible
strategic alternatives
a. Strategies
(Strength-Opportunities)
This strategy is based on the mindset of
the organization, namely by utilizing all the power to seize and take advantage
of the greatest opportunities
b. ST
Strategy (Strenghts-Threats) It is a strategy to use the strength of the
organization to overcome threats.
c.
WO (Weknesses-Opportunities) Strategy
This strategy is implemented based on utilization opportunities that exist in a
way minimize existing weaknesses.
d. WT
Strategy (Weknesses-Threats) This strategy is based on defensive activities and
seeks to minimize existing weaknesses and avoid threats.
Analytic
Hierarchy Process
Analytic
hierarchy process (AHP) was developed by Thomas L. Saaty in the early 1970s
The working
principle of AHP is to form a problem structure. In solving problems, the AHP
method used as a tool to help formulate strategies requires the preparation of
hierarchies in the process. The hierarchy in question starts from the Goal,
groups of factors, strategic factors and strategic alternatives
SWOT-AHP
Method
In this
research, the AHP structure obtained from the SWOT matrix and divided into
three parts
fig. Phases Model
Technical
Concept
Data collection methods used were
survey methods and direct observation. The data obtained include primary data
and secondary data. Primary data were obtained directly from the
sample/respondent with a purposive sampling method through interview techniques
and assisted with a questionnaire in the form of written questions and
alternative answers provided
Weighting of
internal and external strategic factors and group factors was performed through
pairwise comparison methods. After an alternative strategy was created, the AHP
method was used to prioritize the alternative. The AHP method produces the best
strategy from various alternative strategies recommended through the SWOT
matrix
result
The first step in analyzing SWOT is to make an
analysis of internal and external factors from PT. X.
Table. SWOT factors and
sub-factors for the strategy selection
Strength (S) (S1) New Product (S2) Registered patent (S3) Mechanical technology |
Weakness (W) (W1) Product not widely
known (W2) Inoptimal product promotion |
Opportunities (O) (O1) Switching products from manual to automatic (O2) Market
share's openness (O3) More efficient
products |
Threats (T) (T2) Price Competition (T3) Product
Fraud |
Alternative
strategies based on the SWOT factors and sub-factors are developed using the
SWOT matrix.
1.
Increasing promotion program (A1)
2.
Increasing product quality (A2)
3.
Pricing strategy (A3)
4.
Marketing cooperation (A4)
discussion
The next
step was pairwise comparison of SWOT factors by using Saaty (1-9) scale. The
comparison results are shown in Table 3.
Table.
Pairwise comparison of SWOT factors
With Respect To The Goal |
Strengths |
Weakness |
Opportunities |
Threats |
Importance Degrees of SWOT
Groups |
Strengths |
1,00 |
5,00 |
3,00 |
3,00 |
3,00 |
Weaknesses |
0,20 |
1,00 |
0,71 |
0,58 |
0,62 |
Opportunities |
0,33 |
1,41 |
1,00 |
2,00 |
1,18 |
Threats |
0,33 |
1,73 |
0,50 |
1,00 |
0,89 |
CI=0,028 CR=0,03
Table. Geometric mean matrix score of
sub-criteria - Alternative expert 1 and expert 2
|
A1 |
A2 |
A3 |
A4 |
Local Weight |
Global Weight |
S1 |
0,17 |
0,15 |
0,25 |
0,36 |
0,140 |
0,072 |
S2 |
0,12 |
0,32 |
0,14 |
0,42 |
0,528 |
0,273 |
S3 |
0,18 |
0,17 |
0,27 |
0,36 |
0,333 |
0,172 |
W1 |
0,13 |
0,15 |
0,29 |
0,43 |
0,500 |
0,043 |
W2 |
0,10 |
0,25 |
0,21 |
0,41 |
0,500 |
0,043 |
O1 |
0,12 |
0,23 |
0,20 |
0,40 |
0,250 |
0,055 |
O2 |
0,14 |
0,18 |
0,21 |
0,41 |
0,500 |
0,111 |
O3 |
0,21 |
0,20 |
0,16 |
0,36 |
0,250 |
0,055 |
T1 |
0,13 |
0,20 |
0,23 |
0,45 |
0,443 |
0,077 |
T2 |
0,12 |
0,16 |
0,18 |
0,47 |
0,387 |
0,067 |
T3 |
0,20 |
0,21 |
0,14 |
0,38 |
0,169 |
0,029 |
|
0,57 |
0,83 |
0,85 |
1,62 |
3,87 |
0,997 |
Matrix Score |
0,148 |
0,207 |
0,214 |
0,393 |
0,961 |
|
Based
on the calculation of the geometric mean, it is found that the first priority
is on improving product quality (0.393), the second is marketing cooperation
(0.214), the third priority is pricing strategy (0.207) and the last is
promotion (0.148).
Conclusion
The results showed that the SWOT-AHP analysis on the
formulation of superior product marketing strategies stated that the most
important priority strategies is the
Strength-Opportunity strategy. Strength got the highest score of 53% and
Opportunity by 21%. The SO strategy focuses on the strengths the company has to
seize the opportunities. Through the SWOT sub-criteria, it was found that the Strenghts priority were S2 (Registered patent) with a score
of 0.53, S1 (New product) with a score of 0.29, S3 (Mechanical technology) with
a score of 0.28, respectively. While weaknesses priority were
W2 (inoptimal product promotion) with a score of
0.63, W1 (product not widely known) with a score of 0.37. In addition,
the Opportunities Priority were the order of O2 (market share's openness) with
a score of 0.52, O3 (More efficient products) with a score of 0.29, and O1
(Switching products from manual to automatic) with a score 0.19. And finally,
the Threats priority were T1 (raw material) with a score of 0.53, T2 (price
competition) with a score of 0.26 and T3 (product fraud) with a score of 0.21.
Based on the alternative selection results on the formulation of a marketing
strategy for electric battery sprayer knapsack products, it can be concluded thatthe main priority are increasing product quality by
39.3%, the second priority were marketing cooperation with a score of 21.4%,
the third is pricing strategies by 20.5% and finally the promotion by 14.8%.
acknowledgements
This research had been Supported
by Indonesia Naval Technology College (STTAL) and Indonesia Defense University.
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