COMPETITIVE ANALYSIS ON REPTILE INDUSTRY IN INDONESIA BASED ON 5 PORTER FORCES

• Main Author: Alfin Aurora Nasution, Rifky
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/45364
• Institution: Institut Teknologi Bandung

Reptile hobbies in Indonesia's growth more significant from time to time. According to Tribunnews.com, the potency of the pet industry in Indonesia could grow to 7,1 % in 2020, if it so how about the potency on a specific category like reptile then. With the dynamic and broad market, how is the industry based on Porter Five Forces analysis and what it needs to survive in the industry? The competition level on this research are based on Porter five forces, the factor that affect the forces is fully obtained from the interview with respondent. Respondent in the research is owner from a firms that already establish more than 3 years and have profits more than IDR 10,000,000,- . All of the respondent are an expert on this industry, they already have their own reputation from all over Indonesia. All of the factor that obtained thru the respondent will linked to the theory from Porter that publish under the title “the five forces that shape strategy” on 2008, the result show that 4 out of 5 of the forces is high. By that reason it can be conclude that the competitiveness level on Indonesian reptile industry is high. The recommendation of business strategy that fit to the reptile industry in Indonesia on this research, is mainly aiming to be uses by the new entrants. Hopefully new entrants can smoothly enter and sustain in this industry. The strategy is obtain from some factor that affecting the forces level on Porter five forces analysis, the factors then translate to strength, weakness, opportunity and threats (SWOT). After all factors fit to each category of SWOT, the SWOT factor than being reviewed with Porter generic strategy that consist of 3 strategy which is Cost Leadership, Differentiation and Focus strategy to gain each strategy advantages and disadvantages. The amount of disadvantage and advantages on each strategy will determine how far capability of each strategy in this industry. The amount of advantages and disadvantages on each strategy being coded to three category, those are Less Capable, Capable, and More Capable. There are two strategy that suit the most to the industry based on the coding process, those are Differentiation strategy and Focus Differentiation strategy, the strategy then reviewed one more time through each advantages and disadvantages to see which one is more suitable to new entrants. Strategy that suit to new entrants which acquire through analysis and discussion is a Differentiation Focus, the reason is because it is easier to implement and it also give more important advantages to the new entrants than the differentiation strategy. For the new entrants that using a Differentiation Focus it is a must to do marketing activity from online and also offline. The marketing activity like promoting their brand on social media, or open a stand on pets event will be maximize the sale of their differentiated product. New entrants also can give a branding to themselves by make all of their identity as the iguana seller for example, and also by giving a guarantee that their product are the high quality product.