View of Thesis SWOT Analysis of the Marketing Strategy of Freight Forwarding Company PT. Samudera Naga Global Surabaya Branch in Improving Competitiveness

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Thesis SWOT Analysis of the Marketing Strategy of Freight Forwarding Company PT. Samudera Naga

Global Surabaya Branch in Improving Competitiveness

Andika Kusuma Wardana, Ani Wulandari Department of Management, Narotama University Jl. Arief Rachman Hakim, No.51, 60117, Surabaya, Indonesia [email protected], [email protected]

Abstract

PT. Samudera Naga Global is a freight forwarding company in Indonesia. This study aims to analyze the marketing strategy of PT. Samudera Naga Global Surabaya branch uses the SWOT (Strength, Weakness, Opportunity, and Threat) analysis method. SWOT analysis was carried out using the IFAS (Internal Factor Analysis Summary) and EFAS (External Factor Analysis Summary) matrices. This study used qualitative research methods. The type of research data is primary data obtained through direct interviews with 7 respondents: the owner, marketing department and customer. The sampling technique used in this study used the snowball sampling technique. The results of the research show that the marketing strategy that needs to be carried out by PT. Samudera Naga Global is a strategy of using the strengths it has and taking advantage of existing opportunities: a sustainable corporate image, an extensive marketing network not only on the island of Java but also outside Java, a strategy effective marketing and strategic locations that meet market share.

Keywords:

Freight Forwarding, Marketing Strategy, Swot.

1. Introduction

PT. Samudera Naga Global is a freight forwarding company in Indonesia established in February 2004, committed to providing expert and error free international transportation. Freight forwarding companies have a business with many services or export services taken from various shipping companies, to then be offered to customers or shippers who have special criteria. Shipping services have advantages and disadvantages of various products, therefore freight forwarding companies must be able to compete with other companies to obtain process and provide the best and competitive service. Not only that, problems that occur during shipping,

According to BPS, exports in Indonesia in January 2020 grew positively by 12.24 percent compared to the previous period in the same period. Indonesia's exports experienced a contraction in May by up to 29.1 percent. Meanwhile, import growth in Indonesia has contracted from March 2020 to January 2021(BI, 2020).

Freight forwarding companies have a business with many services or export services taken from various shipping companies, to then be offered to customers or shippers who have special criteria. Shipping services have advantages and disadvantages of various products, therefore freight forwarding companies must be able to compete with other companies to obtain process and provide the best and competitive service.

1.1. Theory Basis 1.1.1. SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate strengths, weaknesses, opportunities and threats in a project or a business speculation. These four factors form the acronym SWOT (strengths, weaknesses, opportunities and threats). This process involves setting specific goals from business or project speculation and identifying internal and external factors that support and do not achieve these goals (Mariantha. N, 2018).

The purpose of implementing SWOT in a company is to provide a guide so that the company becomes more focused, so that the placement of the SWOT analysis can be used as a comparison of thoughts from various points of view, both in terms of strengths and weaknesses as well as opportunities and threats that might occur in the future come.

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1.1.2. Marketing Strategy

According to Agustina & Bismala, (2014) marketing strategy is one of the plans implemented by the company to achieve certain goals within the company. Therefore, a marketing strategy is useful if it is supported by structured planning and methods, so that it can also be achieved through strategic thinking.

Therefore, it is important to pay attention to the company's environment, both internal and external.

1.1.3. Competitiveness

Competitiveness is a concept of comparing the ability and performance of companies, sub-sectors or countries to sell and supply goods and or services provided in the market. Competitiveness can be interpreted as an indicator of whether or not a company has achieved it. There are several advantages that can be used by companies, namely: price, market share, brand, product quality, consumer satisfaction, and distribution channels (Mashuri & Dwi, 2020).

1.1.4. Freight Forwarding

Freight forwarding is a company engaged in overall freight forwarding services, freight forwarding can function as EMKL, shipping, even door to door delivery.

1.1.5. Framework of thinking

Figure 1. Framework of thinking

2. Research Methods

This research uses quantitative research methods. This study used primary data sources by conducting interviews with 7 internal respondents and customers of PT. Global Dragon Ocean. The data analysis method uses SWOT (Strength, Weakness, Opportunity, and Threat) with the following stages:

1. Quadrant I: this is a very favorable situation. The company has opportunities and strengths so that it can take advantage of existing opportunities. The strategy that must be implemented in this condition is to support an aggressive growth policy (Growth Oriented Strategy).

2. Quadrant II: Despite facing various threats, this company still has internal strength. The strategy that must be implemented is to use strength to take advantage of long-term opportunities by means of a diversification strategy (products/services).

3. Quadrant III: The company faces enormous market opportunities, but on the other hand it faces several internal weaknesses. The focus of this company's strategy is to minimize the company's internal problems so that it can seize more market opportunities, with a stability strategy.

4. Quadrant IV: This is a situation that is very unfavorable for the company (deference).

The sampling technique used in this study used the snowball sampling technique. The snowball sampling technique is a multi-stage technique, based on the analogy of a snowball, which starts with a small

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snowball and then increases gradually due to the addition of snow when it is rolled in the snow. It starts with a few people or cases, then expands based on the relationships to the respondents.

3. Results and Discussion 3.1. Company Profile

PT. Samudera Naga Global (SAMUDERA NAGA GLOBAL) is a wholly owned Indonesian freight forwarding company, which was established on February 2004. It is committed to providing error-free and expert international transportation, maximizing logistical effectiveness and minimizing costs.

1. Vision

Committed to being the best forwarding company with good facilities and a large network to serve all customers in the best service, effectiveness, cost and timely delivery and updating information for customer satisfaction.

2. Mission

Contribute to the development of good national and international relations for shipping forwarders in handling national and international cargo movements. PT. Samudera Naga Global also provides the best for the welfare of every employee and becomes an innovator in business forwarder delivery by providing the best solutions to customers.

3.2. Research result

1. Validity test

Test the validity and reliability with a total sample of 7, the value of r table is 0.754. The formula for calculating r table = N-2 with N number of samples, then r table = 7-2 = 5. Judging from the r table with a significant level of 5%, then r table = 0.754.

Table 1. Validity Test Table Purchase Decision (Y)

Question r count

r table

Information S1 0.932 0.754 Valid S2 0.941 0.754 Valid S3 0.976 0.754 Valid S4 0.976 0.754 Valid S5 0.807 0.754 Valid W1 0.826 0.754 Valid W2 0.966 0.754 Valid W3 0.849 0.754 Valid W4 0.966 0.754 Valid O1 0.875 0.754 Valid O2 0.852 0.754 Valid O3 0.938 0.754 Valid O4 0.845 0.754 Valid O5 0.867 0.754 Valid T1 0.955 0.754 Valid T2 0.908 0.754 Valid T3 0.804 0.754 Valid T4 0.908 0.754 Valid

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Source: Research Results (2022) based on SPSS Output

Table 2. Reliability Test Table Variable

Chronbach Alpha results

Chronbach Alpha Minimum

Test results

Strengths 0.919 0.6 Reliable

Weaknesses 0.924 0.6 Reliable

Opportunities 0.819 0.6 Reliable

Threats 0.804 0.6 Reliable

Source: Research Results (2022) based on SPSS Output

3.3. SWOT Data Analysis Test

3.3.1. Test Instrument

Based on the results of the instrument test for the reliability test, it was found that all instruments had a crunch alpha value above the minimum limit value of 0.6. So, this instrument can be declared reliable.

Table 3. SWOT Data Analysis Test

No Strength Ratings

1 2 3 4

1 Marketing has several extensive networks on the island of Java 0 0 3 4 2 The customer's positive image that creates trust in PT. Global

Dragon Ocean 0 0 3 4

3 Very broad market segment 0 1 3 3

4 Providing the best service to customers such as monitoring goods to their destination

0 0 5 2

5 Has a strategic location that can be reached easily by consumers 0 0 3 4

No Weakness

1 Parking space is less extensive 5 2 0 0

2 Lack of complete facility services such as limited number of

containers 4 2 1 0

3 Employee competence is not always in accordance with the field

of work 2 4 1 0

4 Too often there are rolling positions within the company 4 2 1 0

5 Lack of discount promos for customers 4 3 0 0

No Opportunity Ratings

1 2 3 4

1 People's purchasing power is getting higher 0 0 3 4

2 A wider market share in forwarding services 0 0 6 1

3 The rapid development of technology 0 0 4 3

4 Business expansion opportunities in other cities in Indonesia 0 0 4 3 5 Low consumer loyalty, because they choose the company 0 4 3 0

No Threat

1 More and more EMKL competition in Surabaya 0 0 5 2

2 Very tight price competition 0 0 4 3

3 Many new competitors have emerged that provide container

services only 0 0 3 4

4 Better marketing of competitor export import services such as

more satisfying customer service facilities 0 2 3 2 Table 4. SWOT Data Analysis Test

No Opportunity Ratings

1 2 3 4

1 People's purchasing power is getting higher 0 0 3 4

2 A wider market share in forwarding services 0 0 6 1

3 The rapid development of technology 0 0 4 3

4 Business expansion opportunities in other cities in Indonesia 0 0 4 3 5 Low consumer loyalty, because they choose the company 0 4 3 0

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No Threat

1 More and more EMKL competition in Surabaya 0 0 5 2

2 Very tight price competition 0 0 4 3

3 Many new competitors have emerged that provide container services

only 0 0 3 4

4 Better marketing of competitor export import services such as more

satisfying customer service facilities 0 2 3 2

3.3.2. Calculation of Internal Strategic Factors Analysis Summary (IFAS) Matrix

Table 5. Calculation of Internal Strategic Factors Analysis Summary

No Opportunity Weight Ratings Score

1 People's purchasing power is getting higher 0.12 4 0.48

2 A wider market share in forwarding services 0.11 3 0.33

3 The rapid development of technology 0.12 3 0.36

4 Business expansion opportunities in other cities in Indonesia 0.12 3 0.36 5 Low consumer loyalty, because they choose the company 0.08 2 0.16

Total odds 0.55 15 1.69

No Threat

1 There is a lot of EMKL competition in Surabaya 0.11 3 0.33 2 Very tight price competition between providers 0.12 3 0.36 3 Many new competitors have emerged that provide container

services only 0.12 4 0.48

4 Marketing of better competitor export import services such as more satisfying customer service facilities

3 0.3

0.10

Total threat 0.45 13 1.47

Total external factors (EFAS) 1

3.3.3. Strategic Factors Analysis Summary (EFAS) External Matrix Calculation

Table 6. Strategic Factors Analysis Summary (EFAS) External Matrix Calculation

No Strength Weight Ratings Score

1 Marketing has several extensive networks on the island of Java

0.14 4 0.56

2 The customer's positive image that creates trust in PT.

Global Dragon Ocean

0.14 4 0.56

3 Very broad market segment 0.13 3 0.39

4 Providing the best service to customers such as monitoring goods to their destination

0.13 3 0.39

5 Has a strategic location that can be reached easily by consumers

0.14 4 0.42

Total power 0.68 18 2,32

No Weakness

1 Parking space is less extensive 0.05 1 0.2

2 Lack of complete service facilities such as limited

number of containers 0.06 2 0.12

3 Employee competence is not in accordance with the

field of work 0.07 2 0.14

4 Too often held rolling within the company 0.06 2 0.12

5 Lack of discount promos for customers 0.06 1 0.06

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Total weakness 0.3 8 0.64

Total internal factors (IFAS) 0.98

3.3.4. SWOT Analysis Cartesian Diagram

To find internal analysis coordinates external analysis coordinates (x,y), you can search in the following way:

Figure 2. SWOT Analysis Cartesian Diagram So, the location coordinates (0.84; 0.11) are as follows:

3.3.5. SWOT Matrix

Figure 3. SWOT Analysis Cartesius Diagram Image

Table 7. SWOT Matrix PT. Global Dragon Ocean Internal factors (IFAS)

External Factors (EFAS)

Strength (S) Weakness(W)

Marketing has several broad networks such as several agents

outside the islands of Java The customer's positive image that creates trust in PT. Global Dragon

Ocean

Very broad market segment Providing the best service to customers by monitoring customer

goods from loading to destination Has a strategic location that can be reached easily by consumers and is

close to the port

Good company facilities. There are many containers owned by the

company.

Less extensive parking space Employee competence is not always in accordance with the field

of work

Too often there are rolling positions within the company Lack of discount promos for

customers

Opportunities (O) SO WO

People's purchasing power is getting higher A wider market share in

forwarding services The rapid development of

technology

Seeing that people's purchasing power is getting higher, it brings opportunities for companies to get

more customers by having and adding agents outside the island and

in cities that have not been reached.

Widening the building land to expand the parking lot will increase

the opportunity for customers to come and be able to accommodate

customer needs directly (W1, O1, O2, O5)

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Business expansion opportunities in other cities in

Indonesia Low consumer loyalty, because they always choose

the most competitive company.

The wider the company's reach to customers, the easier it is for customers to use company services

with a significant increase in customers. (S1, O1, O2, O4) PT. Samudera Naga Global prioritizes the best service to maintain customer trust so as to gain customer loyalty to choose to use the services of PT. Ocean Dragon Global

than other services. Service improvement is carried out on an

ongoing basis both

physically/equipment, services, shops and of course keeping up with the

times. (S2, O1, O2, O4, O5) Improving promotional activities and

effective marketing strategies. The promotion strategy carried out by marketing is clear according to the intended market segment. (S3, O1,

O2, O3, O4)

Improving technology in applications to make it easier for customers to monitor the delivery of goods. (S4,

O1, O2, O3)

PT. Samudera Naga Global in various regions is placed in big cities and close to ports which makes it easy for

transit to move goods from other islands, as well as offices that are easy for customers to find. (S5, O1,

O2, O4)

Provide education to employees to increase competence and knowledge of technology and add

human resources who have expertise in accordance with the employee's field of work. (W3, O1,

O2, O3, O5)

Conduct employee performance evaluations to sort employees by

retaining employees who are experts in the field of work and transferring employees who are less

skilled to other fields. (W4, O1, O2)

Add customer facilities that are not owned by other companies. (W5,

O1, O2, O3, O4, O5)

Threats – T St WT

More and more EMKL competition in Surabaya Very tight price competition between providers that makes

prices unstable Many new competitors have

sprung up that provide container services only and documents are taken care of by the customer so that prices

are cheaper Better marketing of competitor export import

services such as more satisfying customer service

facilities

Always provide different offers and promotions that are not owned by other EMKL competitors (S1, T1,

T2)

PT. Samudera Naga Global maintains quality and corporate image that assures customers that the company is free from problems and is safe and

reliable. (S2, T1, T2, T3) Always improve customer service to

increase customer trust with new EMKL competitors Maximizing strategic locations by maintaining good service and always

give rewards to consumers. (S3, T1, T2, T3, T4)

Collaborating with companies engaged in parking services to solve problems in parking lots, as well as adding human resources as an increase in service performance to customers (W1, T1, T2, T3, T4) Increasingly increasing promotions

to be able to compete with competitors in marketing their

services

Price increases were offset by increasing the number of company

containers and container quality standards thereby increasing service

performance (W2, T1, T2, T4) Doing internal marketing especially

offline to increase brand awareness to be able to compete with other competitors (W3, T1, T2, T3, T4)

Taking a social approach to the community by holding events such

as workshops, seminars or collaborating on other corporate social events that can broaden the community for the introduction of

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Source: Primary data processed (2023)

PT. Dragon Ocean Global (W4, T1, T2, T3, T4)

Distributing vouchers offline and online to the public. (W5, T1, T2,

T3, T4)

1. Calculation for SO: Total Strength (S) score + total Opportunities (O) score = 2.32 + 1.69 = 4.01 2. Calculation for WO: Total Weakness score (W) + total Opportunities score (O) = 0.64 + 1.69 = 2.33 3. Calculation for ST: Total Strength (S) score + total Treats (T) score = 2.32 + 1.47 = 3.79

4. Calculation for WT: Total score of Weakness (W) + total score of Treats (T) = 0.64 + 1.47 = 2.11

4. Conclusion

From the identification of internal and external factors it is known that the internal and external position and profile of PT. Samudera Naga Global has a fairly strong position in the field of freight forwarding, this shows that PT. Samudera Naga Global must continue to make efforts to improve the company's quality, facilities and services.

There are four alternative strategies that PT. Samudera Naga Global in company development. Of the four strategies namely SO, WO, ST, WT which can be used in strategy development.

The results of the identification of internal strategic factors and external strategic factors obtained the highest results that support the SO strategy where this strategy has open strengths and opportunities, supports an aggressive strategy, strategies that can be implemented are:

1. Maintain the company's image so that it has several loyal customers who always use forwarding services owned by PT. Samudera Naga Global, followed by purchasing services that remain competitive so as to attract consumers to use the freight forwarding services of PT. Global Dragon Ocean.

2. The strength of a company that has an extensive marketing network, namely not only on the island of Java but also outside Java, increasingly supports PT. The Global Dragon Ocean is expanding.

3. Increasing promotional activities and effective marketing strategies so that the target market is suitable for reaching market segments.

4. In addition to that, market expansion is also supported by strategic locations to meet the desired market share.

The results of identifying internal strategic factors and external strategic factors obtained the highest results that support the WO strategy where this strategy is to improve existing weaknesses by taking advantage of external opportunities. Strategies that can be applied are:

1. Provide direct service to meet the needs of customers who come directly to the place.

2. Adding the number of containers to increase the quantity of goods sent so as to speed up delivery and make delivery time more effective.

The results of the identification of internal strategic factors and external strategic factors obtained the highest results that support the ST strategy where this strategy uses strength to avoid threats both from within and from outside the company. The strategy that can be implemented is to maximize strategic locations in good service, because location is also one of the evaluations of customers and is one of the best facilities for them. The results of the identification of internal strategic factors and external strategic factors obtained the highest results that support the WT strategy where this strategy is used to overcome weaknesses by avoiding threats from the external environment. The strategy that can be applied is to increase promotions to be able to compete with competitors in marketing their services.

4.1. Suggestion

This research discusses one company engaged in freight forwarding services in Indonesia, namely PT.

Global Dragon Ocean. Suggestions for future research are to conduct research using more than one company or compare freight forwarding companies in Indonesia with freight forwarding companies abroad.

References

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