STRATEGIC ASSESSMENT OF INDONESIAN E-COMMERCE FASHION BUSINESS

• Main Author: Natalie (NIM 19014155), Selva
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24252
• Institution: Institut Teknologi Bandung

With the increasing number of Internet users in Indonesia, the number of Fashion E-Commerce Business also grows rapidly along with the fact that this industry has contributed greatly to the economic growth. However, the growing number of the incumbents apparently creates a major problem of competition within them and result in many challenges and obstacles to survive in theindustry. In order to overcome these issues, a qualitative case study research was completed using a Strategic Management approach to aim at contributing a generalization theory in the business strategy of SMEs. Both external and internal environmental scanning were made through secondary data, observation, and interviews with four businesses which assumed to represent the Fashion E-Commerce Business in Indonesia. EFAS and IFAS matrix were used, which followed by SFAS matrix that resulted in some strategies to be pursued and it suggested a differentiation business strategy. As it will result in uniquely owned strategies, complex external and internal linkages which are hard to imitate by other players. With this, the business will have a sustainable competitive advantage to survive in the long term. Moreover, this research also suggested some <br /> <br /> external and internal factors which affect significantly to business performance, as owners could not be able to maximize every potential. This part was analyzed by seeing how the results of the environment scanning regarding each of the business Return on Assets. From the external environment, it is shown that the General Environment and the advantages possessed by using the <br /> <br /> digital platform compared to the offline contributed positively as opportunities which can be exploited by players. However, from the Industry Analysis, it resulted in some threats, such as the high threat of new entrants and degree of rivalry as stated above. Players should be able to come up with some strategies to exploit the opportunities but minimize the unavoidable threats. Moreover, from the internal business factors, it resulted that Reputation and Marketing and Sales <br /> <br /> have the major role in affecting the business ROA directly and significantly. However, it does not stand alone, as some supportive factors, such as Human Resource and Firm Infrastructure also necessary to effect indirectly but significantly to performance. Moreover, Innovation was also appeared to be a good direct performance leverage, different from Service and Firm Infrastructure. The results showed that Intangible Resources need to be taken into a more consideration as it contributes to business performance notably. Those resources able to create a competitive sustainable advantage for the business which is hard to imitate. Following these results, conclusions and recommendation for E-commerce Fashion Business in Indonesia were made in the last section of this research. In addition, some recommendations to the four businesses that were analyzed in this research were also made. <br />