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8/13/2019 PPT GBE Sukamart
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Business EnvironmentBusiness EnvironmentAnalysis on Pt SumishoAnalysis on Pt SumishoEE--Commerce IndonesiaCommerce Indonesia
General Business Environment
Dwitya Aribawa
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OpportunitiesThreats
Business Implication
Key Trends Analysis ofExternal Business Environment1313
Todays Topics
IndustryCompany
OVERVIEW
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Industry Overview
Retrieved from: Veritrans and Daily Social. (2012). E-Commerce in Indonesia
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Company Overview
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Business External Environment
Classification
P E S TPolitical Government, Domestic and International Issues
Economical Economic Development, Industry and
Sectoral policies, Regional, and Monetary and Fiscal Issues
Social Social, Cultural, Demographical and Natural Issues
Technological Processing and Information Issues
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Domestic
Governmental
International
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1Governmental Environment
Issues:
Public governance in Indonesia (infrastructures,regulations, facilitation).
Indonesia Country Ranking for Doing Business Index
(113/185) and Corruption Perception Index (100/183).
Business Implication
Sukamart need to be a part of idEA Indonesia and create a synergy
with government policy in order to accelerate economic growth.
OPPORTUNITIES THREATS
Industry has get attention and develop by
government (by assign Specific Ministry).
According to doing business criteria, the
infrastructure is still arising problem.
UU ITE is well implement to regulate
online transaction more safe and secure..
Business may be boot-strapped as the
public bureaucracy remains inefficient.
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2Domestic Political Environment
Issues:
Political equality and popular control of public affairs indemocracy era.
Indonesia Election is always appearing insight of chance
and risk for a business.
Business Implication
Be anticipate of election 2014, create collaboration with government
(especially in procurement) regarding to support election.
OPPORTUNITIES THREATS
Decentralization arise good chance to
expand business in outside Java island The arise of uncertainty from Election
may force business to hold investment.PublicPrivate company partnership
tend to be challenge in democracy era.
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3International Political Environment
Issues:
IndonesiaJapan long term business relations.
IndonesiaMalaysiaThailand Growth Triangle (IMT-GT)that support equality of income in Indonesia, especially for
Sumatera island.
Business Implication
Integrating global supply chain of sumitomo will be the internal
competence to sukamart that operate in Indonesia. Product that sellin Indonesia ma can be resent also in Ja an vice versa.
OPPORTUNITIES THREATS
Indonesia and Japanese products can able
to available in Sumitomo Chain Stores.
No tariff from China products can be
threatening Sukamart.
IMT-GT collaboration appearing positive
insight for sukamart to expand ASEANbusiness chain start from Indonesia.
Using local product campaign may
lowering the revenue from Japaneseproduct that imported by Sukamart.
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Economic Development
Regional Economy
Industry and
Sectoral Policies
Monetary andFiscal Policies
Economical Environment
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Economic Development4
Issues:Private consumption expenditure contribute in average 55%
(1st Semester) from the total of GDP (BPS, 2013).
Through the ICT, government is consistently encouraging
economic growth (creating jobs, empowerment programs).
Business Implication
E-Commerce is a sophisticated business opportunity. Economicstabilit of Indonesia and su ort from bankin will be essential.
OPPORTUNITIES THREATS
Growing of ICT users will be derives
new orientation of consumption.
Sukamart consist of some importproduct
from Japan, that increase net of import.
Consumer goods (grocery) market inIndonesia is treated wellby government
as a backbone of Indonesia GDP.
Pure online interface shop makeSukamart only needs people in back office
and warehouse service.
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Regional Economy5
Issues: E-Commerce Industry has a huge leap to minimizing the
boundary between countries to doing business.
+3 Countries (Japan, China and Korea) export more to
Indonesia rather than import (Trade Intensity Index).
Business Implication
Integration based on regional relationship will be important to asses
by Sukamart as a competitive advantage for corporation globally.
OPPORTUNITIES THREATS
Asia Pacific Regional Free Trade plan will
be positive issue to Sukamart ( tariff). There are limited brands of Indonesian
products (grocery) that ready to global.Exchange products through countrybased on Sumitomo chain of stores.
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Industry and Sectoral Policies6
Issues: E-Commerce as a part of ICT Creative Industry planned
by government to greatly contribute to economic welfare.
ICT Industry will be prioritize as a industry that has high
growth rate or called future industry for Indonesia.
Business Implication
Sukamart open the rivalry in new arena of retail B2C e-commerce,
big player such as Carrefour plan to extend to this business model.
OPPORTUNITIES THREATS
Government instructed to support ICT
business in term of bank funding. Human capital (employees) that still
have to developed in order to meet theneeds of Industry development.Tax allowance for communication
products (e-business infrastructure).
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Monetary and Fiscal Policies7
Issues: BI decision to raise the reference interest rate was aimed
at making Rupiah more attractive as an investment.
Directorate General of Taxes plan to taxing online
transaction in Indonesia.
Business Implication
Monetary and fiscal policy that impact in e-business must be
beneficial for business and government (input and feedback).
OPPORTUNITIES THREATS
As downturn economic trends, Sukamart
should be support SMEsproducts.
Sukamart should wait the economic
condition in the right period ofinvest.
When the tax granted to e-commercetransaction that must be included input by
government (such as infrastructure).
Sukamart should be consider about howthat tax treated (fully paid by company,
customers or both.)
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Social Environment
Demographical Environment
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Social Environment8 Issues:Y Generations demanding a new way to shopping, tendency
of live individually and they think about time efficiency.
Growing of middle class (higher level of social class)
people in Indonesia.
Business Implication
Sukamart have to provide excellent quality of services and provide
reliable center of information to meet customers satisfaction.
OPPORTUNITIES THREATS
Sukamart answer a growing need among
parents and working professionals to fit
time-consuming grocery shopping. Multiplier effect from social media
negative comment from Sukamart.Indonesian middle class that demanding
more healthy and easy to reach products.
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Cultural Environment9 Issues: Culture is applies to international business and business
people should be aware in order to doing business abroad.
Business is very sensitive aspect of human interaction in
Indonesia (do not harm people by doing business).
Business Implication
Sukamart faces the unique culture of Indonesia market. Very
promising in one side but other side insight resistance to changes.
OPPORTUNITIES THREATS
Sumitomo holdings has good long term
track record in Indonesia business. To majority of Indonesian, changes in
behaviorbecome a particularly difficultsituation.Indonesia business climate demonstratingloyalty and trustworthiness is critical to
maintaining a good relationship.
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Natural Environment10
Issues: Clean production will help the industry save energy and
material, while at the same time reduces emission.
Developing cleaner and more efficient industrial and
commercial sector for the Indonesian environment.
Business Implication
Green motto of sukamart will be able to extend as a green businessmodel for services and warehousing system.
OPPORTUNITIES THREATS
Sukamart has adopted the phrase
"Less Traffic Jam, More Quality Time"
as their (Green) service motto.
ICT infrastructure needs a huge space and
un-renewable resources investment, for
instance in cabling or hi-tech warehouse.
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Demographical Environment11
Issues: Demographic shift, Demographic Bonus and rapidly
growing middle class are reshaping the business climate.
GINI coefficient rose 34.1% 38.1% (Worldbank, 2012),
reflecting greater income inequality (wider wealth gap).
Business Implication
Now, Sukamart still targeted market in Java island, so demographic
environment can be seen as advantages for them.
OPPORTUNITIES THREATS
Emerging market will create opportunities
related to smart technology, and they will
not be limited to for-profit enterprises.
Difficulty to broaden market outside
Java Island, lack of the logistic ability and
infrastructure being barriers to entry.
Demanding on middle class of people to
reach product faster and easier.
Tendency to enter middle class trap, since
people not build human capital.
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Processing Technology
Information Technology
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Processing Technology
12 Issues: Whether its B2C or B2B, buyers from around the world
are using personal computers and gadget to purchaseeverything from groceries to airplane parts and more.
Business Implication
Latest innovation of technology in order to support integration ofordering, warehousing and delivering will be improve business
process of Sukamart.
OPPORTUNITIES THREATS
Mobile/gadget based order processing will
be interesting to developby Sukamart. Sukamart did not take a part in delivering
process , they trust this significant part to
JNE as a partner to deliver products.Integrating warehouse management
system and e-ordering system.
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Information Technology
13 Issues: Retailers has concern to transform operations through the
creative deployment of todays information technologies fora significant competitive advantage.
Business Implication
As the first mover of grocery e-commerce market in Indonesia,Sukamart able to set the standard of IT business model.
OPPORTUNITIES THREATS
Demand wave from e-channeling (social
media, online forum and digital content).
Rapid IT development will tend Sukamart
spend much capital based on IT driven.
Growing of online & mobile ads as a part
of the new way to promoting business.
Needs an integration information system
between suppliers and Sukamart.
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Strategic Recommendation
1
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External Factor Analysis Summary Table
External Factors (Opportunities & Threats) Weight Rating Weighted Score
1) Governmental Environment 0.025
2) Domestic Politic 0.050
3) International Politic 0.050
4) Economic Development 0.025
5) Industry and Sectoral policies 0.050
6) Regional Economy 0.050
7) Monetary and Fiscal Policies 0.100
8) Social Environment 0.150
9) Cultural Environment 0.025
10) Demographical Environment 0.10011) Natural Environment 0.025
12) Processing Technology 0.200
13) Information Technology 0.150
Total 1
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Thank You
Change brings opportunities.On the other hand, change can be confusing.
- Michael Porter [Harvard Professor]