Business Strategy for Clothing Brand in Indonesia

: The growth of the fashion industry was able to contribute about 18.01%, or IDR 116 trillion. The fashion industry's revenue is anticipated to reach $9.30 billion in 2022, according to recent data. By taking advantage of this chance, Good News is a Christian and Catholic spiritual clothing company. In Indonesia, Good News aims a market of 28.88 million Christians and Catholics. with 1,401,771 potential customers in Jakarta, where Good News is based. Three products were eventually released by Good News, but sales haven't yet surpassed expectations. Additionally, based on the market potential previously mentioned, Good News sales are unable to reach the 1,401,771-person potential market in Jakarta as a whole. Qualitative research techniques are used in this study. Owners of Good News businesses are interviewed for internal data sources. External sources can be found by reviewing published sources of information for pertinent political, governmental, legal, technological, and competitive trends and events. Before analyzing Good News's strengths, weaknesses, opportunities, and threats, the author first collects external business factors. The data is then converted into an IFE and EFE matrix, which can be used to determine rankings and weights. A matching IE matrix is created after the data analysis. Good News The total weighted scores for the IFE matrix and EFE matrix are 2.54 and 2.86, respectively. The Hold and Maintain strategy fits the Good News based on the IE Matrix. Good News can change its strategy by working on product development and market penetration. Additionally, starting in January 2023, the author developed an implementation plan, timeline, and budget plan to track strategies to keep the business on course.


I. INTRODUCTION
Fashion trends in Indonesia reflect social and economic status, which is usually identified as popularity.Fashion has recently emerged as a lucrative industry in Indonesia, with its growth continuing to accelerate.The fashion industry's development was able to contribute approximately 18.01% or IDR 116 trillion.Badan Ekonomi Kreatif (BEKRAF) is also working to strengthen the ecosystem and promote growth in this subsector.Fashion has evolved from a basic necessity to an artistic necessity to accelerate this industry's growth.

Figure1. Fashion Revenue in Indonesia, Statista
According to recent data, revenue in the Fashion segment is expected to reach $9.30 billion in 2022 [1].The potential for fashion in Indonesia is still very good, particularly in the apparel segment, besides the number of consumers who are dominated by the age

II. LITERATURE REVIEW
In this chapter, the author will discuss the theory regarding the strategic plan based on book references and previous research.A strategic plan is essentially a business's game plan.To compete successfully, a company must have a solid strategic plan [2] An analysis called the External Factor Evaluation (EFE) matrix can be used to identify and assess external factors like those that affect the economy, society, culture, demography, environment, politics, government, law, technology, and industry competition.Utilizing the Internal Factor Evaluation (IFE) Matrix tool is one step in the analysis process.It can be used to identify and assess a business's scope's strengths and weaknesses [3].
Because a company needs to take advantage of opportunities and avoid or at least mitigate threats, this external analysis is crucial to strategic planning.The goal is to create divisional EFE matrices that the business could use to create a comprehensive corporate EFE matrix.Searching the internet and reviewing published sources of information for pertinent political, governmental, legal, technological, and competitive trends and events is a crucial step in preparing an external audit.Before effective strategies can be developed, external opportunities and threats must be analyzed [3].It takes five steps to create an EFE matrix: 1. List the important external elements that were discovered during the external audit process.Use a total of 10 to 20 external factors, including both opportunities and threats.List your opportunities before your threats.2. Give each factor a weight that ranges from 0.0 (not important) to 1.0 (absolutely important).The weight given to a particular factor reveals its relative significance to the firm's industry success.The factors that are thought to have the biggest impact on organizational performance should be given the highest weights, regardless of whether they are considered to be external opportunities or threats.All weights must add up to 1.0.3. To determine whether a factor is a low response (rating = 1), a average response (rating = 2), a good response (rating = 3), or a high response (rating = 4), rate each one from 1 to 4. Be aware that attributes must be rated 3 or 4 for opportunities and 1 or 2 for threats.As a result, ratings are based on companies, whereas step 2's weights are based on industries.4. To calculate a weighted score for each variable, multiply the weight of each factor by its rating.5.The organization's overall weighted score is calculated by adding the weighted scores for each variable.
No matter how many variables are included in an IFE Matrix, the total weighted score can range from 1.0 to 4.0, with 2.5 being the average.Organizations with total weighted scores well below 2.5 are characterized as being externally weak, whereas scores significantly above 2.5 show a strong external position.An EFE Matrix should contain between 10 and 20 important variables.The range of total weighted scores is unaffected by the number of factors because the weights always add up to 1.0.[2].
This strategy-formulation tool provides a basis for identifying and evaluating relationships between those functional areas as well as a summary and evaluation of the key strengths and weaknesses in each.It is necessary to make intuitive decisions when creating an IFE Matrix, so just because it seems like a scientific method, that doesn't mean it is.More significant than the numbers themselves is a thorough understanding of the factors involved.[2] It takes five steps to create an IFE matrix: 1. List the important internal elements that were discovered during the internal audit process.Use a total of 10 to 20 internal factors, including both strengths and weaknesses.List your strengths before your weaknesses.2. Give each factor a weight that ranges from 0.0 (not important) to 1.0 (absolutely important).The weight given to a particular factor reveals its relative significance to the firm's industry success.The factors that are thought to have the biggest impact on organizational performance should be given the highest weight, regardless of whether they are considered to be internal strengths or weaknesses.All weights must add up to 1.0.3. To determine whether a factor is a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4), rate each one from 1 to 4. Be aware that attributes must be rated 3 or 4 for strengths and 1 or 2 for weaknesses.As a result, ratings are based on companies, whereas step 2's weights are based on industries.4. To calculate a weighted score for each variable, multiply the weight of each factor by its rating.5.The organization's overall weighted score is calculated by adding the weighted scores for each variable.No matter how many variables are included in an IFE Matrix, the total weighted score can range from 1.0 to 4.0, with 2.5 being the average.Organizations with total weighted scores well below 2.5 are characterized as being internally weak, whereas scores significantly above 2.5 show a strong internal position.An IFE Matrix should contain between 10 and 20 important variables.The range of total weighted scores is unaffected by the number of factors because the weights always add up to 1.0 [2].
Although systematic methods for conducting strength-weakness analyses are not well developed in the literature on strategic management, it is obvious that in order to formulate and select alternative strategies effectively, strategists must recognize and assess internal strengths and weaknesses.The fundamental knowledge required to successfully develop competitive strategies is provided by the EFE Matrix, IFE Matrix, and concise statements of vision and mission.Managers and staff from all levels of the organization have the chance to get involved in shaping the company's future during the internal auditing process.Managers and staff can become motivated and energized by being involved in the process [2].
The obtained data from IFE and EFE analysis is then processed further using the Internal-External (IE) Matrix.The IE Matrix's main function is to summarize and depict a company's position in a diagrammatic format [3].

Figure 2. IE Matrix Conceptual Framework
The IFE total weighted scores on the x-axis and the EFE total weighted scores on the y-axis form the foundation of the IE Matrix see Figure 2. Recall that for their respective portions of the organization, each division of an organization should create an IFE matrix and an EFE matrix.Construction of the corporate-level IE Matrix is possible thanks to the sum-weighted scores obtained from the divisions.An IFE total weighted score of 1.0 to 1.99 on the x-axis of the IE Matrix denotes a weak internal position, 2.0 to 2.99 is average, and 3.0 to 4.0 is strong.EFE total weighted scores between 1.0 and 1.99 are regarded as low, 2.0 to 2.99 as a medium, and 3.0 to 4.0 as high on the y-axis.There are three main regions of the IE Matrix, each of which has a different strategic impact.First, grow and build is the prescription for divisions that occur in cells I, II, or IV.These divisions may benefit most from intensive (market penetration, market development, and product development) or integrative (backward integration, forward integration, and horizontal integration) strategies.Second, hold-and-maintain strategies work best for managing divisions that fall into cells III, V, or VII; product development and market penetration are two tactics frequently used for managing these kinds of divisions.Third, harvest or divest is a typical treatment for divisions that occur in cells VI, VIII, or IX.Successful companies can build up a portfolio of companies that are located in or close to the cell I of the IE Matrix [2].The main external factors in the Good News business, according to the results of opportunity the EFE Matrix analysis, is There is a community drive to have something that follows the trend.with a score of 0.28.Good News' primary area of threat, receiving a score of 0.24, is The purchase of fabric must be in a large quantity so that it requires higher capital.The overall internal factor score of 2.86 indicates that external conditions at Good News are favorable.Organizations that are weak externally have total weighted scores well below 2.5, whereas organizations that are strong externally have scored significantly above 2.5 [2].

B. IFE Matrix
The Internal Factor Evaluation (IFE) Matrix is a tool used to process data that has been collected on the internal factors.The IFE matrix is a tool that can be used to identify and assess the strengths and weaknesses in the range of a business, claim [3].Table 2 displays the IFE matrix's findings for the Good News company.Through internal analysis, there are ten factors that are strengths and seven that are weaknesses.The main internal factors in the Good News business, according to the results of the IFE Matrix analysis, are Engage with customers through Instagram and Good product quality orientation with a score of 0.36.Good News' primary area of weakness, receiving a score of 0.14, is Brand names are less widely known to the public.The overall internal factor score of 2.54 indicates that internal conditions at Good News are favorable.Organizations that are weak internally have total weighted scores well below 2.5, whereas organizations that are strong internally have scored significantly above 2.5 [2].

C. IE Matrix
There are three main areas of the IE Matrix, each of which has a different strategic implication.First, grow and build is the prescription for divisions that result in cells I, II, or IV.For these divisions, intensive (market penetration, market development, and product development) or integrative (backward integration, forward integration, and horizontal integration) strategies may be most suitable.Second, hold-and-maintain strategies work best for managing divisions that fall into cells III, V, or VII; product development and market penetration are two such tactics frequently used for managing these kinds of divisions.Third, harvest or divest is a typical treatment for divisions that occur in cells VI, VIII, or IX.Successful companies can build up a portfolio of companies that are located in or close to the cell I of the IE Matrix.

Matrix Table (External Factor Evaluation) Score Weight Rating Opportunity
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Table 2 . IFE Matrix IFE Matrix Table (Internal Factor Evaluation) Weight Rating Score Strength
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