SWOT Analysis Development of Yogyakarta Batik

Sri Suryaningsum

, Raden Hendri Gusaptono

, Sri Luna Murdianingrum

, Ni Putu Ayu Mas Sri

Wulan

, Rakyan Widowati Tanjung

Universitas Pembangunan Nasional Veteran Yogyakarta

2Universitas Gadjah Mada

Keyword: Development of Yogyakarta Batik, SWOT Analysis, Strategy Evaluation

Abstract: This study focuses on the development of Yogyakarta Batik using a SWOT analysis. SWOT analysis is a

comprehensive review of company strengths, weaknesses, opportunities, and threats. This analysis is needed

to determine several strategies that must be applied to a company. Yogyakarta has become a famous batik

district in Indonesia. Seeing the development of batik that is getting better and more in demand by tourists,

analysis to determine business strategy is of particular concern to the company. Not only is the quality of the

product in the spotlight, but the promotion and placement (location) of product sales. With opportunities to

increase sales in existing tourist attractions, accompanied by threats from external companies. The threat

comes from other companies that present the same product at prices below the price offered by Bantul Batik

craftsmen. This SWOT analysis is expected to be able to overcome the existing threats. In addition to threats

and opportunities, companies must also analyze their strengths and weaknesses. The advantages possessed

are used as weapons to compete in market share. While weaknesses can be used as guidelines to improve in

terms of quality, both from natural resources and human resources that exist in the company. The analytical

formulation framework according to Fred R. David consists of 3 stages, namely: (1) input stage, consist of

external factor evaluation matrix, competitive profile matrix, and internal factor evaluation, (2) matching

stage, consist of strength-weakness-opportunity-threat (SWOT) Matrix, Boston consulting group (BCG)

matrix, internal-external (IE) matrix, and large strategy matrix, the last stage is (3) decision stage, consist of

two-phase, phase 1 is objectively evaluated alternative strategies identified from and phase 2 is techniques

from the decision stage are quantitative strategic planning matrix (QSPM). Observation is one of the data

collection techniques that not only measure respondents' attitudes (interviews and questionnaires) but can

also be used to record various phenomena that occur (situations, conditions).

1 INTRODUCTION

Yogyakarta is one of the tourist destinations in

Indonesia. Besides being a city of students and

cities, Yogyakarta has many tourist attractions that

are very attractive for tourists to visit Yogyakarta.

Apart from having a lot of potential and tourist

attractions, Yogyakarta also has its own uniqueness

that is not shared by other cities in Indonesia,

including warm, bakpia, and batik. With the

nickname Yogyakarta is the center of batik from

tourists, this is a big challenge for the batik industry

in this student city. All efforts are made to maintain

and control the market to attract tourists. In addition

to maintaining quality, creativity in batik cloth

motifs is also a challenging demand. To foster a love

for various products nuanced with batik, craftsmen

are also required to make various models of clothing

and accessories that follow the era. This can attract

teenagers to wear clothing and accessories with batik

nuances. Batik is the identity of Yogyakarta because

it is called the City of Batik. UNESCO recognizes

batik as belonging to Indonesia and establishes

October 2, 2009, as Batik Day in Indonesia (Sri

Suryaningsum, 2017).

The use of batik further developed into various

fields of clothing, household equipment, and

architecture. As a result of civilization, batik

underwent changes due to technological

developments, circles, and shifts in cultural values. It

broadens the scope of the development of the world

of batik. The use of batik in various modern fashion

creations, also for interior and household needs, as

mentioned, gives a real picture. The widespread

function of batik has opened up many possibilities

158

Suryaningsum, S., Gusaptono, R., Murdianingrum, S., Wulan, N. and Tanjung, R.

SWOT Analysis Development of Yogyakarta Batik.

DOI: 10.5220/0009959901580168

In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management (ICBEEM 2019), pages 158-168

ISBN: 978-989-758-471-8

for the new role of batik in its user community

(Indonesia Indah Batik 8).

Like nowadays, more and more are presenting

printed batik instead of painted batik. With the

existence of this printed batik cloth makes batik

artisans squeezed even more. To maintain the

sustainability and sustainability of the written batik

business, the purpose of this study is to examine the

choice of strategies and what actions are used to deal

with challenges and enter the opportunities that

exist. As well as knowing the advantages possessed

to dominate the market and improve the weaknesses

they have in order to maintain quality and get a

sense of trust from tourists or consumers.

2 STUDY OF LITERATURE

2.1 Definition of SWOT Analysis

SWOT analysis is a comprehensive assessment of

the strengths, weaknesses, opportunities, and threats

of a company. This analysis is needed to determine

several strategies that exist in the company. One of

the things we discuss is the promotion strategy and

product placement (Kotler & Armstrong, 2008: 64).

SWOT is used to assess the strengths and

weaknesses of the company's resources and external

opportunities and challenges faced (Jogiyanto, 2005:

46)

Fred R. David, states that all organizations have

strengths and weaknesses in the functional area of

business. There aren’t company is as strong or weak

in all business areas. The following is an explanation

of SWOT, namely:

a. Strength

Strengths are resources, skills, or other advantages

that relate to the company's competitors and the

market needs that can be served by companies that

are expected to be served. Strength is a special

competition that provides a competitive advantage

for companies in the market (Lita Yulita, etc., 2018).

b. Weakness

Weaknesses are limitations or shortcomings in

resources, skills, and capabilities that effectively

hinder a company's performance. These limitations

are in the form of facilities, financial resources,

management capabilities, and marketing skills that

can be a source of weakness in the company.

c. Opportunities

Opportunities are critical situations that benefit in a

corporate environment. Trends - important trends are

one source of opportunities, such as changing

technology and increasing relationships between

companies and buyers or suppliers is a picture of

opportunities for companies.

d. Threat

Threats are critical situations that do not benefit in

the corporate environment. Threats are the main

intruder for the current position or desired by the

company. The existence of new or revised

government regulations can be a threat to the

company's success.

2.2 The Function of SWOT Analysis

According to Ferrel and Harline (2005), the function

of SWOT analysis is to get information from

situation analysis and separate it from internal issues

(strengths and weaknesses) and external issues

(opportunities and threats). The SWOT analysis will

explain whether the information indicates something

that will help the company achieve its objectives or

provide an indication that there are obstacles that

must be faced or minimized to meet the desired

income.

3 RESEARCH METHODS

3.1 Data Type

The location of this research is the district in the

Yogyakarta region. This data is collected from

January to June 2019. In this study, the variables to

be examined are the condition of the company,

including the external and internal environmental

conditions of the company, as well as company

variables.

The primary data source is a data source that

directly provides data to the data collector. While

secondary data is a data source that does not directly

provide data to data collectors, but sees other people

or with documents (Sugiyono, 2013: 225). Data

obtained from primary data sources is a direct

response received from the subject in question, while

secondary data is data obtained from surrounding

communities that are not related or have a

relationship with this batik center.

3.2 Method of Collecting Data

Observation is one of the data collection techniques

that not only measure respondents' attitudes

(interviews and questionnaires) but can also be used

to record various phenomena that occur (situations,

conditions). This Observation Method is said to be

the most appropriate to observe directly (in

SWOT Analysis Development of Yogyakarta Batik

159

accordance with Sri Suryaningsum, 2016). This

research conducts observations or direct

observations on the object under study, namely

analyzing the advantages and disadvantages of the

company and taking the threats and opportunities

available.

4 DISCUSSION

4.1 Development of Yogyakarta Batik

The development of batik in Yogyakarta is

increasing because Yogyakarta is known as the city

batik. Seeing this condition, batik artisans are

increasingly challenged to present innovations to

maintain and maintain their existence so that batik

can be loved by all walks of life. Yogyakarta itself

has a variety of motifs, both classical and modern

batik. There are around 400 motifs from Yogyakarta

Batik. Besides motives, color games are presented.

The origin of the basic color of the Yogyakarta batik

is black or white. Although Yogyakarta Batik colors

tend to be dark or black, the black color of

Yogyakarta tends to be bluish.

In the development of the typical batik in

Yogyakarta, interference from many parties is

needed, including batik entrepreneurs, the

government, and the people of Yogyakarta. Some of

the efforts made by the Yogyakarta City

Government to develop batik typical of the city of

Yogyakarta are like issuing a Government

Regulation regarding the use of Gagrak Traditional

Service Clothing in Yogyakarta in the Yogyakarta

City Government, making batik training and

socialization about things in the batik business.

According to some batik observers, if observed,

most of Yogyakarta Batik has a strong and valuable

impression because of its firm motives, while Solo

batik emphasizes beauty (edi peni) with a more

refined motif.

4.2 Analytical Framework Strategy

Formulation

Business strategies are needed by every type of

business, both large and small. According to Fred R.

David in his book entitled Strategic Management

Concepts, the analytical framework for formulating

strategies can be applied to all organizational sizes

and types and can help the strategists identify,

evaluate and choose strategies.

The analytical formulation framework, according

to Fred R. David, consists of 3 stages, namely:

1) STAGE 1: INPUT STAGE

This stage contains basic input information needed

to formulate a strategy. The techniques from the

input stage consist of:

a. External Factor Evaluation Matrix (EFE)

b. Competitive Profile Matrix (CPM)

c. Internal Factor Evaluation Matrix (IFE)

2) STAGE 2: MATCHING STAGE

This stage focuses on creating alternative strategies

that come in with respect to the main external and

internal factors. The techniques from the matching

stage consist of:

a. Strength-Weakness-Opportunity-Opportunity

(SWOT) Matrix

b. Strategic Position Matrix and Action

Evaluation (SPACE)

c. Boston Consulting Group (BCG) Matrix

d. Internal-External (IE) Matrix

e. Large Strategy Matrix

3) STAGE 3: DECISION STAGE

This stage uses input information from Phase 1 to

objectively evaluate alternative strategies identified

from Phase 2. The techniques from the decision

stage are the Quantitative Strategic Planning Matrix

(QSPM).

5 RESULT AND DISCUSSION

Stage 1: Input Phase

IFE MATRICS (Internal Factor Evaluation)

Internal factors are factors related to the conditions

that exist in the company and owned by the

company. These internal factors can then become the

strengths and weaknesses of the company. If the

company has these factors well, it will be a strength,

and vice versa, if the condition of these factors is not

good, it will be a weakness for the company.

No Internal Key

Factor

Quality Rating Rating

Quality

Strengths

1. Skilled

Workforce

0.14 4 0.56

2. Advertising 0.08 3 0.24

3. Production

Equipment

and

Machinery

0.12 4 0.48

4. Product

Privileges

0.10 4 0.40

ICBEEM 2019 - International Conference on Business, Economy, Entrepreneurship and Management

160

5. Price

Strategy

0.08 3 0.24

Weaknesses

1. Employee

Benefits

0.06 2 0.12

2. Raw

Material

Inventory

0.10 2 0.20

3. Company

Finance

0.12 1 0.12

4. Location of

Company

0.12 1 0.12

5. Working

Relationship

Policy

0.08 1 0.08

Total 1.00 2.56

Matriks EFE (Eksternal Factor Evaluation)

External factors are factors related to conditions

outside the company but still affect the company.

These external factors can then become

opportunities and threats for the company. If the

company feels the external factors well and supports

the company, then it will become an opportunity for

the company and vice versa if the conditions of the

external factors are not good, then it will be a threat

to the company.

No Internal

Key

Factor

Quality Rating Rating

Quality

Opportunities

1. Culture 0.12 4 0.48

2. Govern

ment

0.10 3 0.3

3. Consum

0.14 3 0.42

4. Technol

ogy

0.08 2 0.16

5. Distribut

ion

Channel

0.06 2 0.12

Threat

1. Competit

0.18 4 0.72

2. Raw

Material

Supplier

0.12 3 0.36

3. Minimu

m Wage

Level

0.06 1 0.06

4. Inflation

Rate

0.06 1 0.06

5. Political

and

Economi

0.08 1 0.08

Situation

Total 1.00 2.74

Stage 2: Matching Stage

SWOT Analysis

Internal Factor

External Factor

Strength (S)

1. Skilled

workforce

2. Advertising

3. Equipment

and production

machinery

4. Product

specialty

5. Price strategy

Weakness

(W)

1. raw

material

inventory

2. Corporate

finance

3. Location

of the

company

4. Work

relations

policy

5. Employee

benefits

Opportunity (O) Strategy (SO) Strategy

(WO)

1.Culture

2. Government

3. Consumers

4. Technology

5. Distribution

channels

1. Increasing

innovation in

batik motifs and

designs

(S1, S3, and

O1)

2. Add market

share outside

the city of

Yogyakarta (S4

dan O3, 05)

1. Open new

branches

closer to

cities (W3

and O3, O5)

2. Provide

additional

training for

employees

(W2 and O2)

Threat (T) Strategy (ST) Strategy

(WT)

1. Competitors

2. Raw material

suppliers

3. Level of

UMR / UMP

4. Inflation rate

5. Political and

economic

circumstances

a. Increase

advertising (S2

and T1)

b. Give

discounts on

superior

products (S5

and T1)

Increasing

competitiven

ess in order

to gain new

market share

(W3 and T1)

Based on the results of the SWOT matrix

analysis, the alternative strategies are determined

from the combination of SO, WO, ST, and WT as

follows:

a. Combination of Strengths and Opportunity

(SO)

The advantages possessed by the company are

weapons to introduce products to the market. In

SWOT Analysis Development of Yogyakarta Batik

161

addition to introducing, it is also a weapon as a

defense to maintain existence. Opportunities also

determine which products are capable of or do not

dominate the market with the advantages possessed.

b. Combination of Weaknesses dan

Opportunities (WO)

Batik entrepreneurs have employees from young

people to mothers. The ability possessed by each

employee is limited to batik. The batik writers need

to include every employee in training held by the

government regarding the art of batik. The aim is to

increase productivity so that batik can be better and

also add to the experience of employees in batik

(this combination is obtained from formulations W2

and O2).

c. Combination of Strength and Threat (ST)

One sales strategy that is a strength for the

perpetrators of batik is always innovating written

batik motifs, both combinations of motifs and

creating new motifs. Each of the perpetrators of

batik has a distinctiveness of the batik produced.

Although the type of batik produced is the same as

batik, but every batik artist competes in a healthy

manner and has his own regular customers.

The threat felt by the perpetrators of written batik

is the emergence of new competitors with more

modern production equipment, which costs much

cheaper than other types of batik, and its motives

have been innovating. With such threats, the

perpetrators of batik are careful to produce batik

motifs and treat customers well (this combination is

obtained from formulations (S4, S5, and T1).

The next threat felt by the perpetrators of batik is

if the raw materials sold increase. The strategy

carried out by the perpetrators of written batik is to

buy more raw materials than usual to overcome if

the price of raw materials at any time increases.

Batik entrepreneurs do not need to increase the

selling price of batik if they do not want to lose their

customers (this combination is obtained from

formulas S5 and T2).

d. Combination of Weaknesses and Threats

(WT)

Each of the actors of batik must be able to

produce quality batik from the types of fabrics and

motifs produced to be able to compete with other

batik artisans. Usually, customers who become

permanent consumers of hand-written batik are easy

to re-buy the batik produced because of the

affordable prices and good motives. The better and

more attractive batik produced also helps employees

to increase their income (this combination is

obtained from formulations W3 and T1).

This matrix is a four-point framework that shows

whether an aggressive, conservative, defensive, or

competitive strategy is most suitable for the

development of written batik in the city of

Yogyakarta. The SPACE matrix axis shows two

internal dimensions and competitive advantage and

two external dimensions and industrial strength.

These four factors are probably the most important

determinants of the overall strategy for developing

written writing in Yogyakarta.

SPACE Matrics

This matrix is a four-point framework that shows

whether an aggressive, conservative, defensive, or

competitive strategy is most suitable for the

development of written batik in the city of

Yogyakarta. The SPACE matrix axis shows two

internal dimensions and competitive advantage and

two external dimensions and industrial strength.

These four factors are probably the most important

determinants of the overall strategy for developing

written writing in Yogyakarta.

Financial Position (FP) Rating

1. Working Capital 3

2. Cash Flow 4

3. Raw Material Inventory 3

4. Sales 4

Average 3.5

Industry Position (IP) Rating

1. Operating Profit 3

2. HR (Human Resources)

available

3. Market Share 5

4. Market Demand 5

Average 4

Stability Position (SP) Rating

1. Competitor -2

2. Technological Development -2

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162

3. Political Stability -4

4. Inflation Rate -1

Average -2,25

Competitive Position (CP) Rating

1. Good Working Relationship -3

2. Wide Market Share -2

3. Product Specialty -3

4. Quality of Raw Materials -1

Average -2.25

X-axis = -2.25 + 4 = 1.75

Y-axis = 3.5 + (-2.25) = 1.2

Koordinat = (1.75 , 1.25)

The SPACE Matrix analysis for the development

of batik in the city of Yogyakarta above indicates an

Aggressive strategy. This Aggressive Strategy

identifies organizations in a very good position in

using internal power to take advantage of external

opportunities, deal with internal weaknesses, and

avoid internal threats. Therefore, market penetration,

market development, product development,

backward integration, future integration, horizontal

integration, or diversification can be feasible

depending on the condition of the company.

IE Matrics

At this stage, the combination of internal and

external factors will be carried out in which

alternative strategies will be obtained later. The tool

used is an internal-external matrix (IE) consisting of

9 cells. At this stage, it is often called the matching

stage.

TOTAL IFE WEIGHTED SCORE

SEL I

SEL II

SEL III

SEL IV

SEL V

SEL VI

SEL VII

SEL VIII

SEL IX

The internal and external matrix tables above, the

company IFE score 2.56, and EFE 2.74 was

obtained. This shows that for the internal factors to

be responded to on average and for external factors,

the company also responds to the average, which

means that external factors and internal factors have

an effect on determining strategic steps. With these

results, the company is in the position of cell V by

implementing market development and product

development strategies.

Matrics Grand Strategy

Based on the Grand Strategy matrix analysis

above, the development of batik in the area of

Yogyakarta in Quadrant I, namely in the position of

high market growth and strong competitive position.

So the development of Demak Batik is in a very

good strategic position. For this development, the

appropriate strategy is the ongoing concentration of

the current market (market penetration and market

development) and products (product development).

When you have excessive resources, then forward,

backward, or horizontal integration can be an

effective strategy too. When in Quadrant I, it can

0,0

2.56,

2.74

‐7

‐2

‐7 ‐23

AxisTitle

Y‐Values

‐7

‐7 ‐23

X‐axis=1.75,Y‐axis=1.25

Koordinat=(1.75,1.25)

SWOT Analysis Development of Yogyakarta Batik

163

take advantage of external opportunities in several

areas. Besides that, taking risks is aggressive. That

is, dare to take high risks to get big profits.

Stage 3: Decision Phase

This stage is called the decision stage. This stage

uses input from information stage 1 to evaluate

objectively from the results of stage 2 so that a good

alternative strategy can be chosen. The tool used for

this stage is the Quantitative Strategic Planning

Matrix (QSPM).

a. QSPM (Quantitative Strategic Planning

Matrix

This stage uses input from Phase 1 to objectively

evaluate the results of Phase 2. In the QSPM table,

there are 2 alternative strategies given weights so

that a good strategy can be obtained to be selected.

1) Market Penetration

Strength



a. Skilled Workers with AS 3

The presence of skilled labor in the production

process has not yet influenced market penetration.

The energy needed is a marketing manager who is

observant in seeing market opportunities.

b. Advertising with AS 4

Every company always tries to carry out

promotions to get consumers' attention to their

products. Promotion with attractive advertising

methods will certainly invite interest from

consumers to buy products from batik entrepreneurs.

c. Equipment and production processes with AS

With the existence of reliable production

machines, it is expected to be able to support

employees in the production process. Timely

production processes are always supported by

reliable production machines.

Critical

Factor

Success

Weig

Market

Penetration

Product

Development

(AS)

(TA

(AS)

(TAS

)

Strength:

Skilled Staf 0,27 3,00 0,81 0,17 0,05

Advertising 0,15 4,00 0,62 4,00 0,62

Production

equipment

and

Machinery

0,23 3,00 0,69 4,00 0,92

Specialty of

product

0,19 4,00 0,77 4,00 0,77

Price

Strategy

0,15 3,00 0,46 3,00 0,46

Total 1,00 17,00 3,35 15,17 2,82

Weakness:

Employee

Benefits

0,13 1,00 0,13 1,00 0,13

Raw

Material

Inventory

0,21 3,00 0,63 3,00 0,63

Company

Finance

0,25 3,00 0,75 2,00 0,50

Location of

Company

0,25 4,00 1,00 1,00 0,25

Work

Relations

Policy

0,17 2,00 0,33 2,00 0,33

Total 1,00 13,00 2,83 9,00 1,83

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164

d. Employee Benefits with AS 1

Employee benefits have not significantly

affected the company's steps in controlling market

share.

e. Privileges of products with AS 4

By giving innovation to its products, it is

expected that the producers of written batik can get

potential consumers. Products that are different from

batik products, in general, will certainly attract

consumer buying interest.

f. Price strategy with AS 3

The determination of pricing policies is expected

to increase the company's market share. Producers of

written batik offer batik products with prices and

quality that are able to compete with batik products

from other companies.

Weakness

a. Inventory of raw materials with AS 3

Less raw material inventory will certainly reduce

the productivity of the company. Especially if the

price of key raw materials such as rising fabrics, of

course, has an impact on the increase, of course, an

impact on rising prices of batik, which affects the

price of products offered on the market.

b. Corporate Finance with AS 3

In order to capture the market share of batik,

companies must have stable finance so that every

company can be realized. Erisa Batik certainly must

have good financial planning.

c. Company Location with AS 4

The location of a company far from the city

center causes the company's products to be difficult

to reach by consumers. So it is important for

companies to continue to improve promotions so

that consumers can find out the location of the

company.

d. Policies issued by Erisa Batik can affect

employee motivation. Erisa Batika needs to build a

good work culture so that employees have high

loyalty to the company.

Opportunity

a. Culture with the AS 1

The influence of culture influences every product

forcing Erisa Batik to be observant in offering its

products to certain regions. Erisa Batik products that

are dominant with motifs from Javanese culture will

be difficult to accept in areas that have other cultures

because the area has a different culture.

b. Government with AS 3

Collaboration with certain parties or agencies

will increase the market share of Erisa Batik. Some

government policies also help companies get new

customers. As with government policies in the use of

batik uniforms in institutions or school schools.

c. Consumers with AS 4

Consumer purchasing power influences market

share. The higher the consumer's purchasing power

for batik products, the higher the company's

opportunity to increase market share and sales.

Consumers are seen as attractive by companies.

d. Technology with the AS 5

Today many companies use technology as a

marketing tool to get as many consumers as

possible. Maximizing technology starting in the field

of operations and marketing is seen as attractive by

the company.

e. Distribution Channels with AS

Distribution channels are seen as attractive by

companies, due to the presence of good distribution

channels, of course, can add potential customers.

Erisa Batik has opened a showroom to facilitate the

marketing of batik products.

Threat

a. Competitors with AS 4

Competitors represent the biggest threat to

companies in capturing market share. Erisa Batik has

the main competitor, who came from the batik

printing company. In addition, batik originating from

abroad is also one of the competitors because the

price offered is usually below the market price of

local batik.

b. Raw Material Suppliers with AS 3

Raw material suppliers have important

influences on the production process. Raw material

suppliers generally don't only serve one company.

Erisa Batik has suppliers of raw materials that serve

its competitors, as well. Game prices by raw material

suppliers can cause companies to have difficulty in

buying raw materials. Standard suppliers are

attractive to companies.

c. UMR / UMP level with AS 2

Compensation awarding that is in accordance

with the work of the employee is a form of

appreciation for the employee. With the provision of

compensation in accordance with what is determined

by the government, it is deemed attractive by the

company.

d. Inflation rate with AS 1

A stable inflation rate is seen as not attractive by

the company. This is because the company sees that

inflation does not affect consumers' purchasing

power of the company's products.

SWOT Analysis Development of Yogyakarta Batik

165

e. The state of economic politics with the AS 1

The political economy situation has not given a

significant influence on the company, so that it is

considered not attractive to the company.

2) Product Development

Strength

a. Skilled Staff with AS 4

Skilled employees will certainly be able to create

innovations in every product produced. In product

development, innovation is the main key to this

strategy, so that it requires skilled labor. Skilled

workers become very attractive to companies.

b. Advertising with AS 4

Every new product that is produced certainly

requires advertisements to be introduced by

consumers. Erisa's batik products are always

introduced to consumers through brochures and

social networks.

c. Equipment and production machinery with AS

A quality product can not be separated from the

engine and equipment. The company has quality

equipment and machinery so that it can produce

quality products.

d. Employee Benefits with AS 1

Employee benefits are considered attractive

enough to motivate employee work performance.

e. Privileges of products with AS 4

Erisa Batik has a striking characteristic in each of

its products. Product features are very attractive,

according to the company, so the company continues

to innovate on its batik products.

f. Price Strategy with AS 3

The price of each product is certainly very

different. The level of difficulty and raw materials

are the determinants of pricing. Price strategies are

considered attractive to companies because they

influence consumer decisions in buying these

products.

Weakness

a. Requires raw materials with AS 4

With sufficient raw materials, of course, the

company is able to run a product development

strategy. Because raw materials are the main factor

in the batik production process. Erisa Batik is

required to have sufficient raw materials in

producing various kinds of batik motifs.

b. Corporate finance with AS 2

Corporate finance that is not overlooked will

certainly have an impact on company productivity

(Sri Suryaningsum and Jogiyanto, Hartono 2018).

Erisa Batik is not yet ready for quite interesting

finances.

c. Location of the company with AS 1

The location of the company is not very

attractive to companies because customers are more

looking at the product while the location of the

company is far from the city center.

d. Policy on employment relations with AS 1

The policies taken are in accordance with the

company's vision and mission. Company policy is

less attractive in the eyes of the company.

Opportunity

a. Culture with the AS 4

Culture is a very influential factor for batik

artisans. The motifs produced by Erisa Batik are

generally rooted in Javanese culture. So that culture

has an important role in product innovation.

b. Government with AS 2

The policies issued by the government have not

had a significant impact on Erisa Batik products, so

that they are quite attractive to companies.

c. Consumers with AS 4

Products produced by Erisa Batik will certainly

greatly affect consumers' buying interest. With

product innovation, consumers will be given a large

selection of batik products from the company. The

company also serves orders whose designs come

from the consumers themselves.

d. Technology with the AS 4

The use of technology will certainly greatly help

Erisa Batik to carry out various product innovations

that are carried out using technology. Technology is

considered attractive to companies.

e. Distribution Channels with AS 1

Distribution channels are considered less

attractive by companies because they have no direct

influence on product innovation.

Threat

a. Competitors with AS 4

Competitors always offer products that are

different from the company. Although there are

some similarities in the motives used, Erisa Batik

always tries to offer products that are different from

competing products.

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b. Raw Material Suppliers with AS 3

Raw material suppliers have a big contribution in

providing quality raw materials for the company. For

companies supplying raw materials, it is considered

attractive because it has a direct impact on the

quality of raw materials for each company's

products.

c. UMR / UMP level with AS 1

The level of UMR / UMP is considered less

attractive because it does not have an impact on

product innovation.

d. Inflation with AS 1

Changing inflation has not affected the company

enough.

e. Political State of Economics with AS 1

The Indonesian political economy is considered

to have less influence on company productivity.

What is obtained from the third problem

statement is that the marketing strategy that is

suitable to be used suitable for Erisa Batik in the

future is the product development strategy with a

total TAS of 5.84. This means that the product

development strategy can be used as a marketing

strategy for Erisa Batik in the years to come.

Strategy Evaluation

A suitable strategy to survive in this industry is an

intensive strategy (market penetration, market

development, product development) and integration

strategies (forward, backward integration, and

horizontal integration) as follows:

a. Market penetration strategy is a strategy to

increase existing market share for products

produced through marketing on a large scale.

b. The market development strategy is a strategy

of introducing existing products to new

marketing areas.

c. The product development strategy is a

substantial modification of existing products

or creating new products but now for

customers through existing channels.

d. The backward integration strategy is a strategy

so that the supervision of raw materials is

increased so that it increases control over the

supplier company.

e. The forward integration strategy is a strategy

so that supervision of goods distribution is

further enhanced so that it further increases

control of the distributor or retailer company.

f. Horizontal Integration Strategy is a strategy of

gaining ownership or increasing control over

competitors.

6 CONCLUSION AND

RECOMMENDATIONS

6.1 Conclusion

In the development of the typical batik in

Yogyakarta, interference from many parties is

needed, including batik entrepreneurs, the

government, and the people of Yogyakarta. Some of

the efforts made by the Yogyakarta City

Government to develop batik typical of the city of

Yogyakarta are like issuing a Government

Regulation regarding the use of Gagrak Traditional

Service Clothing in Yogyakarta in the Yogyakarta

City Government, making batik training and

socialization about things in the batik business.

There are several strategic analyses carried out

for the development of batik in the city of

Yogyakarta, namely:

Input stage: IFE Matrix and EFE Matrix

2) Matching stage: SWOT Analysis, SPACE

Matrix, BCG Matrix, IE Matrix, and Grand

Strategy Matrix.

3) Decision stage: QSPM

Based on the strategy analysis, the most

interesting strategy is the intensive strategy because

the number of attraction scores (5.53) is smaller than

the number of scores on the attraction of the

integration strategy (5.84). That is, the strategy for

developing batik in the city of Yogyakarta is product

development.

6.2 Recommendations

Based on the analysis of data and conclusions, the

author presents several suggestions to the company

as material for consideration in determining

company policy.

1) Creating new innovations in batik motifs from

various cultures in Indonesia and in other

words, producing batik with motifs originating

from motifs of other regions besides

Yogyakarta. For example, making batik motifs

from Papua and marketed in Yogyakarta

because many students and students from

Papua who are in Yogyakarta will certainly

add potential consumers.

2) Dare to open distribution channels outside the

city of Yogyakarta. Because currently, the

number of batik consumers in Indonesia is

increasing.

3) If the company carries out a product

development strategy, the company will need

SWOT Analysis Development of Yogyakarta Batik

167

substantial capital. The capital will later be

used for the addition of competent human

resources, seeking alternative suppliers of raw

materials, and opening strategic distribution

channels. So that the production process and

fulfillment of orders from consumers on time.

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