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Saturday, July 13, 2013

SWOT ANALYSIS IN APPLICATION OF MARKETING STRATEGY



CHAPTER I
INTRODUCTION



A.      Background of The Study
Nowadays, the condition of environment is increasingly complicated and complex and it changes every second, either external or internal environment. The existence of companies is related to the environment of business, in which the situation and condition of an environment have strong influence to the operational of a company. There have been more competitive rivalries among companies so that the factor of the environment can not be ignored by them.
Every company has to know the environment changes occurring happen, because it is completely important to determine the strategy that will be decided by the company to achieve its goals. Therefore, it needs a mature planning to obtain them. And if the environment is easier to change, the impact of the implementation of the strategy is greater.
Marketing has an important role for the existence of the company. Marketing is a function which has greatest contact with external environment; yet, the company simply has limited control to it. Consequently, marketing plays an essential role in developing the strategy (Tjiptono, 1997; 16). Tull and Kahl (in Tjiptono; 1997), define marketing strategy as a fundamental mean which is planned to gain the goals of the company by developing the dominance to compete continuously via  market established and marketing program that is used to serve the objective market up. Formulating marketing strategy needs some analytic approaches by understanding the strength and the weakness, the opportunity and the threat in the company so that is it capable to face the changes of the environment. The changes of that environment can be analyzed by using SWOT analysis.
SWOT analysis is an identification of external and internal factor and it is also a strategy which reflects the comparison between both of them. Logically, an effective strategy is the way to maximize the strength and the opportunity of business, but in the same time it is also minimizes the weakness and the threat.
The purpose of the implementation of SWOT analysis that is done by the company is for obtaining the compatibility between the strength and the weakness of the company with the opportunity and the threat obstructing the goal achievement. Therefore, the manager has to analyze the external and internal environment to identify the factors which have influence the company, predict the next action based on the trend, determine the opportunity and the threat shown by external environment, identify the internal environment factor of the company, establish the strength and the weakness of the company shown by internal environment.
Tofu is known since a long time ago, particularly in Java, as food supplement to staple food; which is a source of protein with low cholesterol. The price of tofu is still low compared to other food source of protein such as fish, chicken and meat. Yet, the existence of tofu home industries can not be separated from competitors, because in Java Island, there are lots of home industries. Like any other companies, tofu home industries need strategy to reach their goals. Because of that reason, making a SWOT analysis is very important.
“28” tofu home industry is a new company and the biggest tofu industry in Bondowoso. Although not long established “28” tofu home industry has average production 1 - 1, 5 ton/days, in fact the production ever reach for 2 ton in fasting month “Ramadhan” and “Idul Fitri”. Another strengthen is on its main material which uses local soybeans and imported American soybeans. These, make “28” tofu home industry have better value and quality.
To face the increasing soybean price and equalize customer demands must have new strategy. It has to know every positive and negative things of their company by using SWOT analysis which has important influence to formulate its new marketing strategy.
All of the explanations which are resulted from SWOT analysis will inform the management about the condition of the area and the position of the company. These information are as the basis in determine the marketing strategy which is exactly appropriate to be done in order that the goal of the company can be achieved.
Based on the explanation above, the title of this study is SWOT ANALYSIS IN APPLICATION OF MARKETING STRATEGY, A Case Study in “28” Tofu Home Industries.      



 

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