Internal Analysis Mersie Case

IV. ANALYSIS AND DISCUSSION

4.1. Analysis of Internal Factors of Mersie

Internal analysis is conducted to find strengths and weakness of Mersie based on the organizational capability of company / business functions.

4.1.1. ManagerialStructure Figure 1. Mersie’s Managerial Structure

This company adopts the functional organizational structure where everyone divided into responsibility according to its primary roles and functions. This organizational structure is commonly used by the start-up company. It is aimed to optimize the potential human resource based on their interest, need, and the responsibility. According to the information from Mr.Sukandar, the director and the owner of Mersie, the share of ownership of Mersie is 100% owned by him.

Here, Company will know new entrants,buyers, substitutes, suppliers and rivalry in this industry. It’s for company strategy to get company positioning.

a. Threat of new entrants ( Low barrier to entry )

It is easy to enter this industry because people just need low capital, such a sewing machine. Thus, people can build this business with low capital in the little scope. They can start with minimum production. All people can involve into building this industry.

b. Bargaining power of buyers ( High bargaining power of buyers )

Buyers will choose the lowest price of products. They are very sensitive to pricing and quality. There are many opportunities to choose another apparel vendor for alternatives.

c. Threat of Substitutes ( Low Threat of substitutions )

The core product is garment / apparel production service that will make mass product efficiently. The substitution is personal tailors, that have low capacity and high costs. Although there is one substitution, but the customer will choose the apparel production service because it is far more efficient.

d. Bargaining power of suppliers ( High bargaining power of

Although there are many potentials in this company, Mersie experiencessales decrease because of customer dissatisfaction. It is mainly caused by the time delay, unstable employee turnover, and underdeveloped system. Thus, after assessing internal and external analysis, we recommend that Mersie should do good growth strategy such as : using software for better financial and sales archiving and better decision on those matters, developing employees by monthly training, WOW after-sales service and providing Ranting Corner for receiving positive and negative feedbacks from customers.

5.2. Good Growth Strategy Recommendation

Based on SWOT and TOWS analysis, Mersie Apparel has some added values than other similar companies. Collaboration with suppliers and competitors, strategic location, hybrid strategy, additional services for customers, the growth of the internet, technology and middle-class society really supports Mersie opportunities to grow. But, Mersie also faces several challenges ahead. Annoying time delay, underdeveloped system and archiving, unstable employee turnover, fiercely competitive industry in domestic and international level; are to be faced and resolved positively.

Thus, based on Good Growth Strategy theory, the strategy we deem as recommended for Mersie to work at is explained as below (ranked by