Topic: Entreupreneurship, Marketing And Strategic

Sub Topic: Entrepreneurship, innovation and regional development

Page 1

The 5th International Seminar and Conference on Learning Organization (ISCLO) 2017

A SWOT Analysis for Business Strategy: A Case

of Rock Dynamic and Joe Adventure the
Outdoor Wear Brand Industries in Bandung

Achmad Fajri Febrian2*, Erna Maulina1, Michael2

Husnul Haq2, Sopyan Saori2
1
Lecturers of Business Administration, Universitas Padjadjaran, Bukit Dago
Utara Street No. 25, Bandung 40135, Indonesia
2
Student of Master Business Administration, Universitas Padjadjaran, Bukit
Dago Utara Street No. 25, Bandung 40135, Indonesia
*achmad16012@mail.unpad.ac.id

Abstract: This paper is a study of analysis business strategy of outdoor adventure

industries in Bandung, with a sample of Joe Adventure and Rock Dynamic
brands. Based on the problems that exist in the company, this study used SWOT
analysis (strengths, weaknesses, opportunities, and threats). This research uses
qualitative methods whose data obtained by conducting direct and deep
interviews to interested parties, then the interpretation related to the theory that
will then produce descriptive data in the form of words and written behavior. In
the results section, we use the SWOT matrix initiated by Humphrey (1960), to
identify and analyze the strengths and weaknesses (internal factors),
opportunities and threats (external factors) that existed by Joe adventure and
Rock Dynamic brands. Furthermore, it can be determined what strategies are
used to deal with competitors and increase profits. The conclusion is the
dominant business strategy was undertaken to improve the competitiveness of
competitors in the fashion industry sector outdoor adventure is the strategy of
differentiation, cost leadership, market penetration, market nicher, strategy for a
market challenge and market follower strategy.

Keywords :. SWOT analysis; strategy; marketing; entrepreneurship; outdoor wear

1. Introduction

The success of indonesia's economic development has brought indonesia into the G20
group or group of 20 major economies, which is a group of 19 countries with a world's
major economies plus the European Union. Officially called The G-20 Group of Twenty
(G-20) Finance Ministers and Central Bank Governors or the Group of Twenty Finance
Ministers and Central Bank Governors. The purpose of the G20 is to embody the industrial
countries and grow together to discuss key issues in a sector of the world's economy. Based
on the data of the Ministry of cooperatives and small and medium enterprises of the
Republic of Indonesia, in 2012 Indonesia became the world's largest country to 16, which
in 2005 still ranked 26th (Kasim, 2013; IMF, 2012). It proves that Indonesia is able to
stimulate the growth of the national economy. The BBC World Service (2011) a survey
conduct by GlobeScan and the Programme on the International Policy Attitudes, Maryland
Febrian. A.F., Maulina. E., Michael., Haq. H., Saori. S

University: (1) Indonesia is a good place to start a business among the 24 countries
surveyed; (2) The assessment is based on evaluation of the level of creativity or innovation
in each country, the level of difficulty to start the effort, evaluation of people who start a
business, and the ease to apply the idea into a business. So the growth of business in
Indonesia is currently still growing despite the crisis in the central State of threatening the
collapse of national economies. For example in 1998, many large-scale businesses in
various sectors including industry, trade and services stagnated even to cease its activity.
However, Small Medium-scale Enterprises (SMEs) can survive and become a restorer of
the national economy in the midst of a slump due to the monetary crisis on various sectors
of the economy (Kasim, 2013; Utama and Darwanto, 2013).
The role of Small Medium Enterprises in the economy of Indonesia is very important in
providing employment and generating output that is useful for society. Small industries
development contributes with a wide path, creating employment opportunities and provides
the flexibility needs of and innovation in the economy as a whole (Sartika, 2004). The
creative industry sector is believed to be viable when other sectors are hit by the global
financial crisis (Utama and Darwanto, 2013; Maslakhah, 2017). According to Howkins
(2001) has now mapped 14 creative industry sectors including: architecture, advertising,
market of art and antiques, craft, fashion, design, video, film and photography, games,
music, perform of arts, publishing and printing, computer and software services, and
research development (Howkins, 2001; Jusuf, 2008; Simatupang and Sridharan, 2008).
Indonesia is a multicultural country, one of the areas in Indonesia is the city of Bandung
which has been approved as a city rich in cultural diversity and has also become an icon of
creative cities in Indonesia. The majority of Bandung people are cultured ethnic Sundanese,
but there is cultural diversity brought by immigrant communities that have long lived in
Bandung, such as Javanese, Bataknese, Melayu, Minangkabau, Betawi and others, and
therefore acculturation. Bandung is also the center of creative industries and SMEs where
the Department of Cooperatives and SMEs and industry of Bandung (2015) has found an
increase in the number of micro, small and medium enterprises from 2010 to 2015 as in
table 1 (Anggadwita, Luturlean, Ramadani, and Ratten, 2017)

Table 1 The number of micro, small and medium enterprises between 2010 and 2015

Year
No Business sector
2010 2011 2012 2013 2014 2015
1 Micro 3649 3827 3921 4115 4301 4472
2 Small 301 325 337 357 372 388
3 Medium 271 273 273 274 276 281
Total 4221 4425 4531 4746 4949 5141
1
Source: Research data, 2017

At the level of Asia, Bandung is a wonderful city in Indonesia which has the top 5 creative
cities, now there are 734 creative industries and can absorb 849 new jobs and provide more
in 2016. Various types of creative industries according to the Department of Cooperatives,

1
Department of Cooperatives, SMEs and industry of Bandung, 2015
 A SWOT Analysis for Business Strategy:
A Case of Rock Dynamic and Joe Adventure the Outdoor Wear Brand Industries in Bandung

SMEs and industry of Bandung (2016) such as handicrafts, culinary, fashion, trade,
services, and production is expected to have its own characteristics so that emerged the
uniqueness of various facets so it is not easy to plagiarism. Bandung is now a center of
textiles, fashion, art and culture and education. The main styles of creative industry are
design, diversity of raw materials, brand specificity, and product uniqueness. The success
of creative fashion in Bandung can not be separated from the needs of the textile industry
and the uniqueness of its distribution is the distribution (distribution shop) and factory
outlets, one of which is fashion in outdoor equipment and adventure equipment (Arifianti,
2014, Hermawati and Runiawati, 2015; Maryunani and Mirzanti, 2015; Department of
Cooperatives SME and Trade Industry of Bandung, 2016).
Table 2 is a list of outdoor industries brands in Indonesia tracked from electronic database
like google scholar sources and from the outdoor wear owners, one of which is Rock
Dynamic and Joe Adventure. Each product brand offers it is own advantages and service
to its customers, as well as competitive pricing according to its type and market segment.
Outdoor equipment products are highly competitive in form, color, durability,
functionality, capacity, technological sophistication and brand. Outdoor equipments meet
all the physical needs of consumers while in the wild, such as tents, stoves, mats, carrier,
daypack, headlamp, flashlights, knives, laces, carabiner shoes, shirts and field pants, and
much more.
Based on search results from many electronic databases and from a result of the interview,
Table 2 is the local brands of outdoor wear and adventure equipment industries in
Indonesia:

Table 2 The Outdoor Industries in Indonesia

Brands Outdoor Wear Areas Brands Outdoor Wear Areas

Rock Dynamics Bandung Elleven Bandung

Joe Adventure Bandung Consina (1998) Bekasi
Eiger (1993) Bandung Boogie Bogor
Jayagiri (1978) Bandung Torch Depok
Alpina (1985) Bandung Avtech (1996) Jakarta
Forester (2004) Bandung MM (2012) Jakarta
Zebra Wall (1999) Bandung Gravell Jakarta
Harrell Bandung Dhaulagiri Jakarta
Mahameru Bandung Redman Jakarta
Klettern Bandung Co-Trek Malang
Trekking Bandung Claw Semarang
Gulf+ Bandung Cozmeed (2008) Surakarta
2
Source: Research data, 2017

2
Search results on electronic database and interview results from one of the
owners of outdoor industries brands in May, 2017
Febrian. A.F., Maulina. E., Michael., Haq. H., Saori. S

In this research, we focus on the fashion industries with the brand name of Rock Dynamics
and Joe Adventures, a local trading company that concerns in the outdoor wear business
activities that produce outdoor and adventure equipment. Brands of Rock Dynamics and
Joe Adventures themselves have become famous among outdoor activity lovers and it’s
products are able to compete with other famous outdoor products. Rock Dynamics and Joe
Adventures are local brands of domestic production that produce a wide range of outdoor
accessories including: kayaks, safety helmets, dome tents and inflatable mats. Rock
Dynamics and Joe Adventures also often participate in nature activities organized by nature
activist organizations and provide a means of providing information for nature lovers
around the world of outdoor adventure while marketing their brand brand. According to the
Law of the Republic of Indonesia No. 9 of 1995 Rock Dynamics and Joe Adventure is
classified as SMEs because it has a net worth of less than Rp. 200 million. It is one of the
reasons we chose them to be sampled in this study.
However, among the advantages of the outdoor industries there are some problems that the
market competition among fellow outdoor industries to be competitive, it becomes a threat
to the Rock Dynamics and Joe Adventures. Therefore, the purpose of this study is to
determine what strategies are dominantly used by outdoor industries to survive and able to
improve the competitiveness of fellow outdoor industries with SWOT analysis.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT analysis
is used to the identification and then analyze the weaknesses and strengths a firm, well as
for threats and opportunities indicated by evidence gathered from external factors. The
analytical methods can also be used to plan and consider a kind of internal and external
factors, the next is to maximize the potential of the power side with a blend of opportunities
and then minimize the weaknesses that to threaten the company. According to Hill and
Westbrook (1997) in Schall's Practitioner's Guide of SWOT, it is a means of getting
information from a company. The information consists of observations in the field and then
summarizes them to produce important information.

Positive Negative
Internal

Strengths Weaknesses
Eksternal

Opportunities Threats

Fig. 1. Strengths, Weaknesses, Opportunities, And Threats (SWOT) Matrix

 A SWOT Analysis for Business Strategy:
A Case of Rock Dynamic and Joe Adventure the Outdoor Wear Brand Industries in Bandung

A SWOT is a framework for analyzing weaknesses, strengths, opportunities, and threats. It

has been expanded as a simple but effective method of analysis in the planning and
development process of a company's marketing strategy. Below is the SWOT analysis
matrix according to Humprey (1960) as Figure 1.

2. Methods

The method used: This research uses qualitative methods whose data obtained by
conducting interviews directly to the parties concerned, then the interpretation associated
with theories related to this research topic, will then generate descriptive data in the form
of written words and behavior can be observed. With an explorative approach is to explore
a more detailed description of outdoor industries owners; Brand Rock Dynamic and Joe
Adventure (Yin, 2005; Arifianti, 2014).

Qualitative research is a study that does not produce an epistemological paradigm (related
to origin, trait and character) in particular, but it is a classical scientific process consisting
of confronting predicted influence with observed phenomena in a holistic environment
(totality). This method presents a startling new fact and allows us to rethink the theoretical
framework. Qualitative research should present the latest facts and surprising findings
(Dana & Teresa, 2005; Dana L. P., 2015).

Techniques used in data collection: Observation is a technique of data collection by the

researcher by observing and taking notes directly on the research object studied, but not
involved in the activities undertaken. The in-depth interview is to collect data directly face
to face with informants, with the aim of getting a complete picture of the topic under study.
Researchers interviewing informants in this study are the owners of creative fashion
industries brands Rock Dynamic and Joe Adventure.

After we succeeded in collecting data in the field of advantages that increase profits and
get a list of what are the weaknesses that threaten the company, the researchers entered the
list obtained into the SWOT matrix for analysis. In-depth interviews with informants took
several days, due to time constraints and the owners were busy taking care of their business.
In-depth interviews were conducted in May 2017.

3. Results and Discussion

In this section, researchers used the study by Friesner (2010), Von Bergen (2013) and Ilott
(1997) about how to analysis of strengths, weaknesses, opportunities and threats (SWOT),
that first introduced by Albert Humphrey (1960; 2005). Results from the analysis process
of identification of competition problems on the internal and external factors. This study
focuses on analysis of internal and external factors that exist in Joe Adventure and Rock
Dynamic. Based on the observations we have encountered in the field and further linking
the findings by analyzing the strengths, weaknesses, opportunities and threats (SWOT), the
researcher makes the matrix as in table 3 as follows:
Febrian. A.F., Maulina. E., Michael., Haq. H., Saori. S

Table 3. The Strengths And Weaknesses (Internal Factor), Opportunities And Threats
(External Factor) Matrix

Positive
Strengths
The marketing fleet was adequate,
the availability of raw materials is
good enough, the price of the
product competes with the
Internal importance of product quality, the
development of a working
atmosphere that is familial and
mutual cooperation between
employees and managerial teams
Opportunities
Innovations in terms of how to
market it, no obstacles in terms of
collection of accounts receivable,
Eksternal the absence of constraints in terms
of debt repayment to creditors, the
expansion of marketing channels,
get the opportunity of many
colleagues in terms of promoting
Negative
Weaknesses
Less resources, realization of
operational costs greater than
planned budgets, frequent errors
in the production process, lack of
promotion by the company
Threats
Competitor prices are cheaper
for some similar products, raw
material prices increase, the
more the establishment of
similar businesses

Source: Research data, 2017

Table 3 is the result of analysis an outline from internal and external factors covering
aspects of the organization, raw materials, product prices, human resources, and
promotions made by the company. Then, external factors that include innovation, accounts
receivable, expansion or expansion of business and corporate cooperation. On external
factors also include threats that can harm companies such as the price of competitors is
much cheaper, raw material prices are increasing, and more and more the establishment of
similar businesses.

After analyze and identification existing internal and external issues using the SWOT
analysis method, we find out how the marketing strategies implemented from Joe
Adventure and Rock Dynamic brands. According to Kotler (1997), the marketing is a social
and managerial process in which individuals and groups get what they need and want by
creating, offering and exchanging valuable products with others. According to Kotler
(1997), strategic planning is a managerial process to develop and maintain harmony
between corporate goals, corporate resources and changing market opportunities. The
purpose of strategic planning is to shape and adjust the business of the company and its
products so that it can achieve profits and a satisfactory growth rate. Strategic Planning is
a formal systematic effort of a company, to outline the main form of the enterprise, its
goals, its policies and strategies, in order to achieve the goals and the primary form of the
company concerned (Burhan, 1984). According to Pearce and Robinson (1997), the factors
of strength and weakness are in a company, while opportunities and threats are
environmental factors faced by the company concerned. From of analysis on table 2 about
analysis internal and external factor of the companies using the SWOT matrix is divided
into 4 (four) types of the strategies including strategies: strengths - opportunities (SO),
 A SWOT Analysis for Business Strategy:
A Case of Rock Dynamic and Joe Adventure the Outdoor Wear Brand Industries in Bandung

weaknesses - opportunities (WO), then strengths - threats (ST) and weaknesses - threats
(WT) as follows Table 4:

Tabel 4. Strengths, Weaknesses, Opportunities And Threats (SWOT) Analysis

Internal Strengths Weaknesses

The marketing fleet was Less resources, realization of
adequate, the availability of raw operational costs greater than
materials is good enough, the planned budgets, frequent
price of the product competes errors in the production
with the importance of product process, lack of promotion by
quality, the development of a the company
working atmosphere that is
familial and mutual cooperation
between employees and
managerial teams
Eksternal
Opportunities S – O: Strategies to take W – O: Strategies to take
Innovations in advantage of opportunities to advantage of opportunities to
terms of how to leverage strengths overcome weaknesses
market it, no Rock Dynamics Joe Adventure Rock Dynamics Joe Adventure
obstacles in terms 1. Expand the 1. Will expand 1. Conducting 1. Due to
of collection of target market by the market by training on limited expertise
accounts receivable, opening a new opening stores human resources in the field,
the absence of branch (store in the center of such as train to collaborate with
constraints in terms expansion to the crowd become experts business
of debt repayment other areas) 2. Establishing in the field of partners who are
to creditors, the 2. Maintain and cooperative outbound experts in the
expansion of improve the relationships adventure field of
marketing channels, quality of service with business 2. Improving the outbound. At the
get the opportunity to customers partners in a organization's same time the
of many colleagues Improve product field management business is
in terms of quality for the training to
promoting better improve
resources
Threats S – T: Strategies to deal with W – T: Strategies to avoid
Competitor prices threats by utilizing strength. threats while protecting strength
are cheaper for Rock Dynamics Joe Adventure Rock Dynamics Joe Adventure
some similar 1. Maintain 1. Increase 1. Improve 1. Selling
products, raw competitive promotion employee competitor
material prices market prices. through social performance products as a
increase, the more 2. Increase media and 2. Maintain form of
the establishment of promotion: social web good consumer
similar businesses media and web advertising relationships appeal and
advertising 2. Selling with keeping from
3. Sell other other brands consumers competing
brand products to products to with familiar
compare the gain profit to products
quality of their help finance
products the business
3
Source: Research data, 2017

3
Results interview from Joe Adventure and Rock Dynamic in May 2017
Febrian. A.F., Maulina. E., Michael., Haq. H., Saori. S

Table 4 is the result of a combination of Strength, Weakness, Opportunity, Treath with a

combination of strengths – weaknesses – opportunities - threats of the creative fashion
industries brands Rock Dynamic and Joe Adventure will generate several possible strategic
alternatives. Alternatives to the business strategy include:

1. Strategies to take advantage of opportunities to leverage strengths (S-O)

a) In Rock Dynamic brand, the strategy used to take advantage of opportunities to
utilize the power of them is to expand the target market by opening new branches
such as store expansion to other areas, maintaining and improving the quality of
service to customers who have been loyal and become regular customers, and
improve product quality to be better which will boost existing customer
satisfaction so that it is expected to attract more customers.
b) The strategy used by Joe Adventure brand to take advantage of opportunities to
utilize the strength of them is to open a new store to the center of the crowd
because the brand has started to be known, to cooperate with business partners in
the outdoor wear and adventure equipment industries in order to become a brand
that can compete with the brand on it.

2. Strategies to deal with threats by utilizing strength (S-T)

a) Strategies used by the Rock Dynamic brand to cope with threats by utilizing
strength include setting and maintaining competitive market prices because the
advantages of this brand are priced relatively cheap with good product quality,
increased promotion through social media and advertising and selling other
products on the grounds to compare the quality of its products with other brands.
b) The strategies used by the Joe Adventure brand to cope with threats by utilizing
forces include increased promotion through social media and advertising similar
to Dynamic Rock. Similar to Rock Dynamic, for Joe Adventure business partners
and competitors is something that is important to note, and different from the
Dynamic Rock, Joe Adventure selling other products with the aim to increase
profits.

3. Strategies to take advantage of opportunities to overcome weaknesses (W-O)

a) Strategies used by the Rock Dynamic brand to take advantage of opportunities by
overcoming a weaknesses include training of human resources such as training to
become experts in outbound adventure and other natural activities so that by
utilizing activities organized by Rock Dynamic will be able to increase customer
loyalty, then improve organizational management system to overcome the
problems that exist in the company.
b) The strategy used by the Joe Adventure brand to take advantage of opportunities
by overcoming the weaknesses include using business partners to outbound or
other natural activities because Joe Adventure's weaknesses do not have experts
as outbound organizers or outdoor activities, yet at the same time, the business is
training for increase its human resources.

4. Strategies to avoid threats while protecting strength (W-T)

a) Strategies used by the Rock Dynamic brand to avoid threats while simultaneously
protecting strength by improving employee performance and maintaining good
relationships with customers, business partners and competitors to maintain the
company's viability.
b) The strategies used by the Joe Adventure brand to avoid threats while protecting
the power include by selling competitor products as a form of consumer appeal
and keeping from competing with familiar products.
 A SWOT Analysis for Business Strategy:
A Case of Rock Dynamic and Joe Adventure the Outdoor Wear Brand Industries in Bandung

From the analysis with combination of strengths, weaknesses, opportunities, and corporate
threats, can be determined what strategies used among others are as follows:

1. Local brands Rock Dynamic and Joe Adventure are both focused on maintaining their
strengths and capitalizing on existing opportunities to increase profits, strengths such
as good product quality by developing different types of products to enhance the
competitiveness of the company. This is in accordance with the theory put forward by
Porter (1980) and and Kotler (1997), a differentiation strategy which is the act of
designing a set of meaningful differences to differentiate the firm's offer from
competitors' offerings.

2. Local brands Rock Dynamic and Joe Adventure both aim to expand market share by
opening other stores in crowded centers, the strategy used is market penetration
strategy (market Penetration). According to Fred R. David (2002), market penetration
aims to expand market share with maximum marketing effort.

3. Local brands Rock Dynamic and Joe Adventure both do a cost ledership strategy of
selling their products at competitive prices, to attract customers and create customer
loyalty. According to Porter (1980) Cost Leadership or cost leadership is one of the
generic strategy. This strategy is done by producing goods at a lower cost with a
relatively similar quality compared to its competitors.

4. Local Brand Rock Dynamic uses Strategy Strategy for Market Challenger (Market
Challenger). According to Keller & Kotler (2007), market challengers can apply
competitive strategy by attacking market leaders and other competitors in order to gain
greater market share (market challengers) or by following competitors and maintaining
the status quo (market followers). The step is to produce helmet climbing with
imported raw materials from taiwan, china so as to produce products that compete with
its competitors, and also sell other products in the store to compare the quality of its
products, that Rock Dynamic also able to produce quality products.

5. Local brands Joe adventure uses a market follower strategy in which the products are
generated following other brands and models (Keller & Kotler, 2007). Joe Adventure
follows other brand models and designs and develops models and designs that are
better suited to smaller market segments and sells them for a low price, thus making
the appeal of small market segments.

6. Local brands Rock Dynamic and Joe Adventure are both doing the strategy of Market
Nicher Strategy. According to Keller & Kotler (2007) states that market nicher is a
strategy for companies that serve small market segments that are not served by larger
companies. Companies must be able to develop skills and customer goodwill so as to
defend themselves from the attacks of major competitors. What local brands of Rock
Dynamic do is serve small market segments that are not served by larger companies.
Hold events like Climbing Expedition to the Top of the Mountain. Supports the
expedition of nature lovers to climb up the mountain and camp. While the local brand
Joe Adventure do Customer size specialist strategy that is the concentration on small
and medium customers.
Febrian. A.F., Maulina. E., Michael., Haq. H., Saori. S

4. Conclusions

After analyzing the business strategy in outdoor industries, which in this research focusing
on 2 (two) local brand from Bandung namely Brand Rock Dynamic and Joe Adventure, it
can be concluded that:
1. The dominant business strategy undertaken to improve competitiveness of competitors
in the outdoor fashion industry adventure is a business strategy proposed by the
marketing experts that is Michael. E Porter (1980), Fred R. David (2002) and Keller
and Kotler (2007).
2. There are several strategies that are equally performed by the outdoor industry
represented by Rock Dynamic and Joe Adventure, including: differentiation strategy
and cost leadership (Porter, 1980), market penetration strategy (David, 2002), market
nicher strategy (Keller and Kotler, 2007).
3. A SWOT Matrix analysis results show that there are different business strategies
performed in each brand such as Rock Dynamic uses Market Challenger strategy to
convince customers that product quality produced by Rock Dynamic brand is not less
competitive with the compiler. Next to Joe Adventure's business strategy against the
threat that arises, by becoming a market follower, so that the products offered have
similarities with other brands, but sold at a relatively cheap price of its competitors.

5. Acknowledgments

The authors would like to thank the Rector of Universitas Padjadjaran, the Dean of the
Faculty of Social and Political Sciences of Universitas Padjadjaran, the Head of the
Postgraduate Program of Universitas Padjadjaran, the Head of the Master of Business
Administration Program of Universitas Padjadjaran, our beloved friends of the 2016’s
Class Master of Business Administration of Universitas Padjadjaran, All Universitas
Padjadjaran students, for their significant support and contribution in improving and
completing this article. We also thank to Dr. Margo Purnomo, Dr. Muhammad Rizal, Dr.
Tetty Herawati, for his valuable comments on the previous version. We are very grateful
to the owners of the Rock Dynamic and Joe Adventure brand businesses for the time and
opportunity given to us until this research was completed.

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