PPT GBE Sukamart

8/13/2019 PPT GBE Sukamart

1/25

Business EnvironmentBusiness EnvironmentAnalysis on Pt SumishoAnalysis on Pt SumishoEE--Commerce IndonesiaCommerce Indonesia

General Business Environment

Dwitya Aribawa


2/25

OpportunitiesThreats

Business Implication

Key Trends Analysis ofExternal Business Environment1313

Todays Topics

IndustryCompany

OVERVIEW


3/25

Industry Overview

Retrieved from: Veritrans and Daily Social. (2012). E-Commerce in Indonesia


4/25

Company Overview


5/25

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


6/25

Domestic

Governmental

International


7/25

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).


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.


8/25

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.


Be anticipate of election 2014, create collaboration with government

(especially in procurement) regarding to support election.


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.


9/25

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.


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.


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.


10/25

Economic Development

Regional Economy

Industry and

Sectoral Policies

Monetary andFiscal Policies

Economical Environment


11/25

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).


E-Commerce is a sophisticated business opportunity. Economicstabilit of Indonesia and su ort from bankin will be essential.


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.


12/25

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).


Integration based on regional relationship will be important to asses

by Sukamart as a competitive advantage for corporation globally.


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.


13/25

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.


Sukamart open the rivalry in new arena of retail B2C e-commerce,

big player such as Carrefour plan to extend to this business model.


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).


14/25

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.


Monetary and fiscal policy that impact in e-business must be

beneficial for business and government (input and feedback).


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.)


15/25

Social Environment

Demographical Environment


16/25

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.


Sukamart have to provide excellent quality of services and provide

reliable center of information to meet customers satisfaction.


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.


17/25

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).


Sukamart faces the unique culture of Indonesia market. Very

promising in one side but other side insight resistance to changes.


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.


18/25

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.


Green motto of sukamart will be able to extend as a green businessmodel for services and warehousing system.


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.


19/25

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).


Now, Sukamart still targeted market in Java island, so demographic

environment can be seen as advantages for them.


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.


20/25

Processing Technology

Information Technology


21/25

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.


Latest innovation of technology in order to support integration ofordering, warehousing and delivering will be improve business

process of Sukamart.


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.


22/25

Information Technology

13 Issues: Retailers has concern to transform operations through the

creative deployment of todays information technologies fora significant competitive advantage.


As the first mover of grocery e-commerce market in Indonesia,Sukamart able to set the standard of IT business model.


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.


23/25

Strategic Recommendation

1


24/25

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


25/25

Thank You

Change brings opportunities.On the other hand, change can be confusing.

- Michael Porter [Harvard Professor]

PPT GBE Sukamart

Documents

Transcript of PPT GBE Sukamart