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International Management Conference and Progressive Paper

SWOT Analysis to Determine Competitive

Strategies at PT Pelni (Persero) Surabaya
Branch
M. Roykhan Efendi 1*, Tias Andarini Indarwati.2

1,2
Department of Management, Faculty of Economics and Business,
Universitas Negeri Surabaya

Abstract
Amidst the continuous evolution of technology and the escalating trends in
marketing strategies, transportation companies such as PT Pelni Surabaya Branch
must remain innovative and creative to uphold their competitiveness. PT Pelni has
encountered revenue fluctuations with a tendency to stagnate, prompting the need
for strategic interventions to enhance income. The research methodology employed
in this study is descriptive, utilizing secondary data and observational findings. Data
analysis methods encompass IFAS, EFAS, and SWOT analyses. The research
findings indicate that internal factors have a weighted score of 2.625, while external
factors have a weighted score of 2.375, suggesting promising business prospects.
Based on the analysis, PT Pelni (Persero) falls within the first quadrant, specifically
the aggressive strategy quadrant. The aggressive quadrant signifies a favorable
situation (Muhammad, 2018), wherein PT Pelni effectively harnesses its strengths
to capitalize on all available opportunities.

Keywords:
IFAS Analysis; Efas Analysis; SWOT Analyisis.

JEL Code: Written by editor

Received Month Date Years; Received in revised form Month Date Years;
Accepted Month Date Years; Available online Month Date Years (Written by
editor)

*Corresponding author
Email: moykhan.20124@mhs.unesa.ac.id

Introduction
In the contemporary era of modernization, business competition has intensified
significantly, leading to consequential changes in the business environment.
Amidst the continual advancements in technology and marketing strategies,
companies in the transportation sector, such as PT Pelni Branch Surabaya, must
remain innovative and creative to uphold their competitiveness. PT Pelni
Branch Surabaya has embraced creative and innovative strategies, exemplified
by organizing free "mudik" events during the Lebaran period. This approach

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not only provides a distinctive advantage and allure but also contributes to the
augmentation of ship ticket sales.
Established on April 28, 1952, based on Minister of Transportation Decree No.
M2/1/2 dated April 28, 1952, PT Pelayaran Nasional Indonesia or PT Pelni
(Persero) is a state-owned enterprise (BUMN) specializing in reliable and
professional maritime transportation services. The company is committed to
delivering optimal service to its clientele. In addition to sea transportation
services, PT Pelni has expanded its offerings to include maritime tour packages
to popular tourist destinations, such as Raja Ampat Islands, Wakatobi, Banda
Neira, Komodo Island, Takabonerate, Karimun Jawa, Bunaken, Anambas,
Derawan, and Tomini.
In the year 2020, PT Pelni adopted a new Corporate Culture based on Minister
of State-Owned Enterprises Decree No. SE 7/MBU/07/2020. This culture
emphasizes the Core Values of State-Owned Human Resources with the
acronym AKHLAK (Trustworthy, Competent, Harmonious, Loyal, Adaptive,
and Collaborative). The company's consistent efforts to enhance its operational
capacity align with its commitment to delivering the best services.
As a key player in Indonesia's maritime industry with strategic functions in sea
transportation, encompassing both passenger and cargo services between
islands, PT Pelni (Persero) continually adapts to evolving circumstances and
new routines. In tandem with this, the company persistently strives to enhance
digitalization-based business processes and operations, ensuring that
consumers receive better and user-friendly services to achieve sustainable
business goals. Given the diminishing use of sea transportation due to the
increasing availability of more varied, convenient, and affordable alternatives,
PT Pelni must competently strategize to secure its position. This is crucial for
augmenting ship ticket sales and influencing consumer purchasing decisions in
favor of PT Pelni's ship tickets.

Table 1
Net income PT Pelni
YEAR INCOME
2018 Rp 4.593.313
2019 Rp 5.544.230
2020 Rp 4.167.428
2021 Rp 4.330.266
2022 Rp 4.906.600
Source : Annual Report PT Pelni 2022

Based on the above table, it can be observed that there is a tendency for
fluctuation in income that tends to stagnate. This phenomenon is attributed to
several factors, including the introduction of a substantial number of new

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transportation services and the failure to achieve ticket sales targets. In light of
comprehending the issues and their ramifications, the author is motivated to
conduct a research study titled: "SWOT Analysis to Determine Competitive
Strategies at PT Pelni (Persero) Surabaya Branch."
Literature review
2.1 Swot Analysis
SWOT Analysis is a strategic planning technique that encompasses two
factors: external factors and internal factors. External factors, originating
from the external environment, play a role in monitoring both micro and
macroeconomic environments through opportunities and threats related to
the organization (Kotler & Keller, 2012). Meanwhile, internal factors
consist of strengths, which evaluate the company's capabilities, and
weaknesses, which assess the company's vulnerabilities.
1. Strengths (Internal) : Internal factors that support the company in
achieving its objectives. Supporting factors may include resources,
expertise, or other advantages acquired through financial resources,
market reputation, excellence, and positive relationships between
buyers and suppliers.
2. Weaknesses (Internal) : Internal factors that hinder the company from
achieving its objectives. Hindering factors may include incomplete
facilities, insufficient financial resources, management capabilities,
marketing expertise, and company image.
3. Opportunities (External) : External factors that support the company in
achieving its objectives. External factors facilitating goal achievement
may include policy changes, shifts in competition, technological
advancements, and developments in supplier-buyer relationships.
4. Threats (External) : External factors that impede the company from
achieving its objectives. External factors hindering the company may
include the entry of new competitors, slow market growth, increased
bargaining power of main suppliers and buyers, technological changes,
and new policies.
2.2 Competitive Advantage Strategies:
The success of a business in establishing its competitive advantage is
contingent upon the appropriateness of the strategies it employs.
Strategies, defined as potential actions requiring top-level management
decisions and substantial company resources (David, 2013), are crucial in
focusing on enhancing the company's competitive position in a specific
industry or market segment. Competitive strategies aim to build a
favorable competitive position within an industry where competition
persists.

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2.3 IFAS and EFAS Matrices :

According to Rangkuti (2017), SWOT analysis involves comparing
internal strengths and weaknesses with external opportunities and threats.
Internal factors are incorporated into the Internal Factor Analysis
Summary (IFAS) matrix, while external factors are included in the
External Factor Analysis Summary (EFAS) matrix. The IFAS matrix
involves determining factors that are strengths and weaknesses, assigning
weights to each factor, and providing ratings to indicate the significance
and effectiveness of each factor. The total weight assigned to all factors
should equal 1.0.
2.4 SWOT Matrix:
The SWOT matrix is a tool used to organize a company's strategic factors.
It vividly illustrates how external opportunities and threats faced by the
company can be aligned with the company's internal strengths and
weaknesses (Noor, 2014). This matrix generates four sets of possible
strategic alternatives, as outlined by Rangkuti (2017):
a. SO Strategy: Utilizing all strengths to capitalize on available
opportunities.
b. ST Strategy: Leveraging internal strengths to overcome threats.
c. WO Strategy: Applying strategies based on maximizing available
opportunities while minimizing internal weaknesses.
d. WT Strategy: Employing defensive activities to minimize
weaknesses and avoid threats.
Research method
The methodology employed in this research is descriptive in nature. According
to Narbuko (2015: 44), descriptive research aims to elucidate current problem-
solving grounded in data by presenting, analyzing, and interpreting it.
Data collection techniques refer to the methods used by researchers to obtain
data in a study. In this research, data are acquired from secondary sources and
observational findings. The data analysis methods employed in this study are
as follows:
a. External Factor Analysis Summary (EFAS): This analysis considers
external factors of the company, encompassing opportunities and threats,
assigning weights to each factor.
b. Internal Factor Analysis Summary (IFAS): This analysis takes into account
internal factors of the company, including strengths and weaknesses,
assigning weights to each factor.
c. SWOT Analysis: This analysis is conducted by comparing external factors
with internal factors of the company. The aim is to derive appropriate
strategies based on the company's conditions.

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These data analysis methods are instrumental in comprehensively examining

and interpreting the external and internal facets of the researched entity,
providing a robust foundation for strategic decision-making.

Data analysis and result

The results of the identification of internal and external environmental factors
for PT Pelni (Persero) Surabaya Branch are presented as follows:
4.1 Internal Factor
1. Strengths:
a. High-Quality and Internationally Standardized Products:
PT Pelni maintains products of international standards in compliance
with prevailing regulations to support the company's vision and
mission.
b. Attractive and Diverse Product Offerings:
PT Pelni offers a diverse range of products that cater to the varied
needs of consumers from different backgrounds.
c. Extensive Distribution Channels Nationwide:
PT Pelni boasts an extensive distribution network, serving routes that
cover almost the entire archipelago, supported by government
assignments for sea toll projects, expanding its reach significantly.
d. State-Owned Enterprise (BUMN):
Being a government-owned company, PT Pelni indirectly enjoys
advantages over competitors, such as a well-known brand and a
higher likelihood of government projects.
2. Weaknesses:
a. Relatively High Ship Ticket Prices:
The ticket prices for PT Pelni's ships are comparatively high,
attributed to the company's commitment to delivering service quality
in line with industry standards.
b. Limited Promotional Activities:
PT Pelni infrequently conducts promotional activities, resulting in
less informed consumers and suboptimal market penetration.
c. Extended Travel Duration:
As a provider of sea transportation, the travel time required is
relatively longer compared to other modes of transportation.
Additionally, PT Pelni's extensive distribution network may
necessitate multiple transits for consumers traveling to distant
locations, impacting travel duration.
d. Aging Fleet:
Some of PT Pelni's ships have been in operation for an extended
period, affecting their sailing efficiency compared to newer vessels.

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However, service quality remains in accordance with prevailing

standards.
4.2 Eksternal Factor
1. Opportunities:
a. Changing Lifestyles:
In the era of globalization, an increase in the lifestyle changes of the
population, including heightened interest in primary and secondary
needs such as diverse travel experiences, presents an opportunity to
enhance PT Pelni's revenue.
b. Rapid Technological Advancements:
The swift evolution of technology enables faster and more efficient
product promotion, contributing to expanded market reach.
c. Lack of Alternative Sea Transportation Services:
Currently, 90% of global trade relies on sea transportation due to its
perceived cost efficiency. Sea transportation remains a preferred
choice, particularly for the middle to lower-income segments,
providing flexibility in travel schedules.
d. Unique and Differentiated Sea Transportation Services:
Sea transportation services offer a distinctive customer experience,
especially with the enjoyment of beautiful sea views during the
journey.

2. Threats:
a. Competitors Offering More Effective and Efficient Services:
Numerous competitors provide services targeting specific market
segments with relatively lower prices, capitalizing on cost
efficiencies by serving profitable routes, unlike PT Pelni's
obligatory service to certain routes.
b. Domestic Economic Conditions:
As a transportation service provider, PT Pelni is sensitive to the
domestic economic situation. A sluggish economy may lead to a
decrease in transportation demand due to reduced purchasing power
among the public.
c. Limited Domestic Sea Transportation Market:
PT Pelni exclusively operates sea transportation services within
Indonesia, limiting its ability to operate internationally and
potentially increase revenue.
d. Public Concerns and Perception of Frequent Sea Accidents:
Public apprehension stemming from news and perceptions
regarding frequent sea transportation accidents may dissuade some
individuals from using this mode of transportation, opting for
alternatives instead.

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4.3 Matriks Ifas

Table 2
Matrix Ifas
Nomor Internal Strategy Factor Weight Ratings Score
Strenght
Quality products and have
1 0,125 4 0,5
international standards
The products offered are interesting
2 0,125 3 0,375
and varied
Has wide distribution channels
3 0,125 4 0,5
throughout Indonesia
4 State-owned company (BUMN) 0,125 3 0,375
Weakness
1 Ship ticket prices are relatively high 0,125 2 0,25
2 Lack of promotional activities 0,125 1 0,125
The length of the journey to reach the
3 0,125 2 0,25
destination
4 The ship is relatively old 0,125 2 0,25
Total 1 2,625
Source : Data processed by the author

Based on the aforementioned table, a weighted score of 2.625 is obtained,

indicating that PT Pelni (Persero) is internally a fairly robust enterprise. This
is attributed to the critical internal factors that PT Pelni (Persero) has
leveraged as their strengths, namely the distinctive characteristics and
uniqueness inherent in their products. However, it is imperative for PT Pelni
(Persero) to also address its weaknesses, such as the limited promotional
efforts and other identified vulnerabilities.

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4.4 Matriks Efas

Table 3
Matrix Efas
Nomor Faktor Strategi Eksternal Bobot Rating Skor
Opportunity
Community lifestyle patterns and
1 0,125 4 0,5
styles
2 Technology continues to develop 0,125 3 0,375
There are no other services as a
3 0,125 3 0,375
substitute
Sea transportation services are unique
4 and different from other 0,125 3 0,375
transportation
Threats
Competitors provide satisfaction and
1 0,125 1 0,125
more effective and efficient service

2 Domestic economic conditions 0,125 1 0,125

Marine Ship Market at PT. Pelni is

3 0,125 2 0,25
limited

Rumors circulating in society are that

4 0,125 2 0,25
accidents often occur at sea

Total 1 2,375
Source : Data processed by the author

From the above EFE table, a weighted score of 2.875 is obtained, signifying
that PT Pelni (Persero) excels in formulating strategies and responding to
threats while capitalizing on available opportunities.

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4.5 SWOT Strategy

Table 4
SWOT Strategy
Strengths (S): Weaknesses
1. High-quality and (W):
internationally 1. The ticket prices
standardized products. for ships are
Internal Factor 2. The service offerings relatively high.
are compelling and can 2. Insufficient
compete with other engagement in
competitors. promotional
3. Maintains an extensive activities.
distribution network 3. Extended travel
throughout Indonesia. duration to reach
4. State-owned destinations.
enterprise (BUMN). 4. 4. The fleet
comprises
Eksternal Factor relatively aged
vessels.
Opportunities (O) SO Strategy WO Strategy
1. Evolving societal 1. Expanding 1. Sponsoring
patterns and lifestyles. market share by community
2. Continuous technological targeting traders, events to
advancements. the middle to introduce the
3. Absence of alternative lower-income company's
products. segments, and products.
4. Unique service offerings entrepreneurs to 2. Participating in
compared to other utilize sea exhibitions to
companies. transportation promote Pelni's
services. sea
2. Maintaining and transportation
enhancing the services in the
quality of community.
internationally 3. Implementing
standardized vessel
products to regeneration
compete in the using the latest
market, aligned technology.
with the

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evolving patterns
and lifestyles of
the growing
society.
3. Developing a
through-ticket
program.
4. 4. Collaborating with
foreign companies for
international
purposes.
Threats (T) ST Strategy WT Strategy
1. Primary competitors 1. Retaining 1.Enhancing
provide more effective customers by promotional
and efficient satisfaction consistently efforts,
and services. offering particularly
2. Domestic economic competitive ticket through social
conditions. prices and high- media channels.
3. The sea transportation quality service 2. Conducting
market for PT. Pelni is despite the demonstrations to
limited. unstable economic showcase that
4. Public perception and conditions of the Pelni's ships are
circulating issues country. equipped with
regarding frequent 2. Implementing advanced and
maritime accidents. sustainable product secure
innovations to technologies,
capture consumer serving as a
interest. reliable means of
3. Developing transportation for
holiday and group the general
visit programs public.
through 3.Organizing
collaboration with special events,
other state-owned such as annual
enterprises to promotional
reach remote areas. events, as a
strategic
promotional
platform.
Source : Data processed by the author

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4.6 Decision-Making for Alternative Strategies in SWOT Analysis

Based on the total scores of each IFAS and EFAS factor, they can be detailed
as follows: strengths 1.75, weaknesses 0.875, opportunities 1.625, and threats
0.75. To determine the strategic direction at PT Pelni (Persero), an analysis is
conducted by subtracting the sum of strengths and weaknesses along the X-
axis and subtracting the sum of opportunities and threats along the Y-axis. The
calculated difference in total scores between strengths and weaknesses is 0.875,
while the difference in total scores between opportunities and threats is also
0.875. The diagram below illustrates the quadrant results of the SWOT
analysis:

Figure 1
Diagram SWOT Analysis

Source : Data processed by the author

From the analysis diagram above, it is evident that PT Pelni (Persero) falls into
the first quadrant, namely the aggressive strategy quadrant. The aggressive
quadrant indicates a favorable situation (Muhammad, 2018). PT Pelni can
leverage its strengths to seize all available opportunities.

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Conclusion
Based on the research conducted at PT Pelni (Persero) Surabaya Branch
through IFAS, EFAS, and SWOT analyses, it is observed that internal factors
have a weighted score of 2.625, and external factors have a weighted score of
2.375, indicating promising prospects for the business. PT Pelni (Persero)
possesses various strengths such as an extensive distribution network and high-
quality products. However, the company has weaknesses, including infrequent
promotional activities and relatively high prices. To sustain and expand the
business, PT Pelni (Persero) needs strategic initiatives, such as increasing
market share and enhancing the quality and service of its products.

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