Strategy to Increase Agarwood Export Performance Using Decision Tree Analysis Study Case of CV. Aromindo

• Main Author: Kurniawan B - 29116148, Harry
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27751
• Institution: Institut Teknologi Bandung

The era of globalization and free trade encourages each country to improve the quality and quantity of exports. This is because exports are the driving force of a country's economy. Indonesia has an important role in the trade in flora and fauna in the world because of its biodiversity, so that Indonesia is one of the largest exporters of flora and fauna in the world. Agarwood is a reliable product in terms of price and market compared to other non-timber forest commodities. There are 32 exporters of agarwood from all over Indonesia who are registered as members of the Indonesian Agarwood Association (ASGARIN). One of them is Aromindo who has been an exporter for 16 years. Agarwood exports tend to increase from year to year, especially in 2016 reaching 267,867 Kg and becoming 306,956 Kg in 2017. But different conditions occur in Aromindo, export performance tends to decline from 2016 to 2017, this is due to export quota restrictions by LIPI and KSDAE which refers to CITES, and unpredictable demand from buyers. Based on these conditions, a strategy is needed to improve the performance of export of Agarwood by mapping the current situation of the company and designing strategies that can be implemented in certain market situations.In this study an external analysis will be carried out by using PESTLE and Porter's Five Forces to generate an opportunity and threat, then internal analysis by using Value Chain Analysis and VRIO Analysis to generate strength and weakness and will be the input for SWOT analysis. After that, an objective strategy will be defined through the TOWS matrix which will then be described as an alternative strategy to be simulated in a Decision Tree Analysis to determine how much value each alternative strategy will provide in certain market conditions. The result is a recommendation to implement 11 alternative strategies in different probability of favorable market that are Create performance appraisal system (≥ 0.9), Employee training program (> 0.9), Establish RnD division (≥ 0.1), Collaborate with third parties to get new insight, Conduct a marketing research (> 0.2), Utilize digital commerce to distribute the products, Optimize the website by make the interface more attractive and simple (≥ 0.1), Utilize digital platform as a media for advertisement, Increase number of International event (≥ 0.4), Provides counseling to the supplier, Conduct company visit for supplier. And for the remaining strategies can be implemented in all favorable market probabilities.