INDUSTRIAL STRUCTURE ANALYSIS OF SMEs’ AUTOMOTIVE PART IN JABOTABEK USING PORTER’S FIVE FORCES MODEL

• Main Author: ARDHANIE AVIANDHARIE (NIM : 23406056); Pembimbing : Dr. Ir. Ali Basyah Siregar, SILVIE
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17236
• Institution: Institut Teknologi Bandung

The growth of automotive market in Indonesia generates the increasing demand for their supporting industries, namely automotive part industries either in big scale or in small and medium scale (SMEs). Due to many of automotive industries are located in Jakarta, Bogor, Tangerang, and Bekasi (Jabotabek), so their supporting industries, which are mainly SMEs, are also growing in those area. To cope with this growth, strategy for developing automotive industry in Jabotabek is needed. Porter (1980) propose that the determination of competitive strategy requires the industrial structure analysis and the determination of the best position of the industry in the strucure. This study aims to analyse the industrial stucture of SMEs’ automotive part in Jabotabek area using the industrial structure analysis proposed by Porter. This model consists of five basic <br /> <br /> <br /> competitive forces, namely threat of entry, intensity of rivalry among existing power of competitors, pressure of substitute products, bargaining power of buyers, and the bargaining power of suppliers. To assest the total score of the SMEs’ competitive advantages, this study used Analytic Hierarchy Process (AHP) method. The results of the analysis indicate that SMEs’ automotive part in <br /> <br /> <br /> Jabotabek have good positions in terms of new comers, suppliers, substitute products, and competitors. While their weakest positions are on their low bargaining positions to buyers. The roles of government in improving the development of the SMEs’ automotive part in Jabotabek area are to develope the technical and business management ability of human resources in firms, to implement mutually coordination system with principle, and to increase the product technology by the coordination of research and development.