APPLICATION OF COMBINED SWOT AND AHP FOR STRATEGY DEVELOPMENT: A CASE OF GREIGE FABRIC MANUFACTURING COMPANY

• Main Author: Harijanto, Jessica
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75738
• Institution: Institut Teknologi Bandung

The textile and clothing industry in Indonesia has one of the highest growth levels the manufacturing sectors. With 15.08 percent of growth in the third quarter of 2019, which exceeded 5.02 percent of economic growth in the same period.PT. Primastra Sandang Lestari (PT.PSL) is a growing textile manufacture company in Indonesia that produced greige weaving fabric as well as doing a contract weaving (makloon greige fabric). Since the first official start in 2014, troubles occurred and today it is presented with some problems one includes maintaining the company’s growth. This faced the company with dilemma in choosing the best strategic decision with the objective to increase the growth rate or at least maintain or at least follow the growth of the Indonesian GDP. This research utilizes a qualitative as well as a quantitative approach. The data collections are conducted from primary and secondary data. This research uses SWOT analysis to define the Strengths, Weaknesses, Opportunities, and Threats for PT. PSL. Then the Analytic Hierarchy Process (AHP) Analysis is conducted with the aim to calculate importance level of each actor in the SWOT group. The importance of each factor is calculated through a pairwise comparison. To find out the best strategic decision, a combination of SWOT-AHP analysis is necessary to be conducted to get the best strategic decision for PT. PSL’s business development. This research conducts a focused group discussion with the directors, employees, and interviews with the customers. According to the research PT. PSL shows eight strengths, six weaknesses, seven opportunities, and seven threats of the company. In this case, the strengths are shown in the huge number of machineries, high production capacity, owners and workers are experts, good name of the founders and owners, ensures on-time delivery, guaranteed quality, good relations with employees and locals, and good waste management. The weaknesses are shown by having a non-integrated system, low brand awareness, weak brand recognition, limited production area, high cost in salary and wage, and depends highly on the suppliers. This research also found the opportunities shown in the industry are creating spinning division, creating processing division, creating a direct distribution i to retail, rebranding, increase production capacity, buying new land or building, and get new customer base. While the threats faced by PT. PSL are unstable policy, cheaper imported products, high opportunity loss, customer bankruptcy, high number of inventories, increase of production cost, and change in buyers’ need. Based on the discussion with the directors, calculation of pairwise comparison within the SWOT group, the Opportunity contributes the highest level of importance which shows around 50 percent of the importance in total. Whereas, the Strength, Weakness, and Threat has the same level of importance with the value around 16 percent. In addition, this research finds the most important subfactor using the pairwise comparison. This research finds that rebranding affect more to the company growth. The second strategy to sustain the company’s development is to invest in a new land or building. The third strategy that the company must focus is to increase the production capacity to ensure the company’s growth. The last strategy that PT. PSL must focus lies in the Weakness category, turning a non-integrated system to an integrated system. In conclusion, there are four strategy that PT. PSL should take to maintain the growth at least as the GDP grow.