Application of Combined SWOT and AHP for Strategy Development: A Case of Slow Fashion Brand in Bandung, Indonesia
DOI:
https://doi.org/10.12695/ajtm.2020.13.3.3Keywords:
Slow Fashion, SWOT, Analytical Hierarchy Process, Strategic Planning, StrategyAbstract
Abstract. Raising global awareness in a sustainable environment intrigued many young designers and environmental activists to create environmentally friendly products. Slow fashion is a new solution to overcome issues caused by fast fashion, which promotes concern about the environment and sustainability of the products proven by materials, process, and disposal of the products. However, there is lack of empirical evidence about strategy development for Slow Fashion brand in Indonesia. This study aims to identify an appropriate strategy for slow fashion brand in Bandung, Indonesia. Bandung is one of the most creative cities in Indonesia, according to UNESCO, and be the main area of the research. Based on the result, researcher can determine several strategies for slow fashion brand in Indonesia. This research used quantitative approach through questionnaire filled during Forum Group Discussion (FGD). In developing the strategies, internal and external factors were carried out from environment scanning and discussion, then analyzed use hybrid methodology of SWOT-AHP. The result of the study concludes four strategies by considering both internal and external factors overall priority score. This study is important in understanding the most important factors to consider in developing strategies to grow a slow fashion brand in Indonesia.
Keywords: Analytical Hierarchy Process , Slow Fashion, Strategic Planning , SWOT
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References
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Entrialgo, M., Fernandez, E., & Vazquez, C. J. (2000). Linking entrepreneurship and strategic management: evidence from Spanish SMEs. Technovation, 20(8), 427-436.
Falcone, P. M. (2019). Tourism-based circular economy in Salento (South Italy): A SWOT-ANP analysis. Social Sciences, 8(7), 216.
Handoyo, S. (2018). The Development of Indonesia Environmental Performance and Environmental Compliance. Journal of Accounting Auditing and Business, 1(1), 69-80.
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Nikolic, D., Spasic, J., Zivkovic, Z., Djordjevic, P., Mihajlovic, I., & Kangas, J. (2015). SWOT-AHP model for prioritization of strategies of the resort Stara Planina. Serbian Journal of Management, 10(2), 141-150.
Nordin, R., & Bakar, S. S. A. (2012). Malaysian batik industry: Protecting local batik design by copyright and industrial design laws. International Journal of Business and Society, 13(2), 117.
Olum, S., Gellynck, X., Okello, C., Webale, D., Odongo, W., Ongeng, D., & De Steur, H. (2018). Stakeholders’ perceptions of agronomic iodine biofortification: a SWOT-AHP analysis in northern Uganda. Nutrients, 10(4), 407.
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Ross, T. M., Jones, E. C., & Adams, S. G. (2008). Can team effectiveness be predicted?. Team Performance Management: An International Journal, 14(5/6), 248-268.
Roth, J. S., & Jacoby, D. (2009). Fashion, Copyright, and the Proposed Design Piracy Prohibition Act. IP Litigator, 15(6), 1.
Saaty, T. L. (1977). A scaling method for priorities in hierarchical structures. Journal of mathematical psychology, 15(3), 234-281.
Saaty, T. (1980). The Analytic Hierarchy Process. New York: McGraw-Hill.
Saaty, T. L. (1993). The analytic hierarchy process: a 1993 overview. Central European Journal of Operation Research and Economics, 2(2), 119-137.
Saaty, T., & Vargas. (2001). Models, Methods, Concepts and Applications of the Analytic Hierarchy Process. Boston: Kluwer Academic Publisher.
Schau, H. J., Muñiz Jr, A. M., & Arnould, E. J. (2009). How brand community practices create value. Journal of marketing, 73(5), 30-51.
Segura, A. (2016, June 01). Diversification and Segmentation in Fashion retail. Retrieved from https://fashionretail.blog/2017/06/01/diversification-and-segmentation-in-fashion-retail/
Statista. (2020). Fashion Indonesia. Retrieved from Statista: https://www.statista.com/outlook/244/120/fashion/indonesia
Stojčetović, B. V., Nikolić, Đ. M., Živković, Ž. D., & Bogdanović, D. M. (2019). Swot-ahp method application to determine current energy situation and define strategies for energy security improvement. Thermal science, 23(2 Part B), 861-872.
The Good Trade (2020). 35 Ethical & Sustainable Clothing Brands Betting Against Fast Fashion. Retrieved from https://www.thegoodtrade.com/features/fair-trade-clothing
The Jakarta Post. (2020, March). Indonesia still deserves special treatment in global trade: Economists. Retrieved from https://www.thejakartapost.com/news/2020/03/02/indonesia-still-deserves-special-treatment-in-global-trade-economists.html
The Saylor Foundation. (2013, September). Strategy Formulation. Retrieved from https://resources.saylor.org/wwwresources/archived/site/wp-content/uploads/2013/09/Saylor.orgs-Strategy-Formulation.pdf
UNESCO. (2015). Bandung. Retrieved from https://en.unesco.org/creative-cities/bandung#:~:text=About%20the%20Creative%20City%3A,hub%20for%20creativity%20and%20entrepreneurship.
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Weihrich, H. (1982). The TOWS matrix—A tool for situational analysis. Long range planning, 15(2), 54-66.
Wheelen, & Hunger. (2015). Strategic Management and Business Policy: Toward Global Sustainability. New York: Pearson Education.
Zarei, M., & Paghaleh, M. J. (2011). Strategic management of business in food industry: by an integrated deployment of AHP and freeman model. Business Management Dynamics, 1(3), 47-52.
Zavadskas, E. K., Turskis, Z., & Tamosaitiene, J. (2011). Selection of construction enterprises management strategy based on the SWOT and multi-criteria analysis. Archives of civil and mechanical engineering, 11(4), 1063-1082.
Aldilax, D., Lazuardi, A. S., & Chrisdira, V. A. (2018). Annual Report 2018. Bandung: Sukku Collective.
Ananda, J., & Herath, G. (2003). The use of Analytic Hierarchy Process to incorporate stakeholder preferences into regional forest planning. Forest policy and economics, 5(1), 13-26.
Ayitey, W. (2010). A Simple Approach to Strategic Management. Ghana: Methodist Book Depot Ltd.
Baby, S. (2013). AHP modeling for multicriteria decision-making and to optimise strategies for protecting coastal landscape resources. International Journal of Innovation, Management and Technology, 4(2), 218-227.
Basset, M. A., Mohamed, M., Sangaiah, A. K., & Jain, V. (2018). An integrated neutrosophic AHP and SWOT method for strategic planning methodology selection. Benchmarking: An International Journal, 25(7), 2546-2564.
Beaver, G., & Ross, C. (2000). Enterprise in recession: The role and context of strategy. The international journal of Entrepreneurship and innovation, 1(1), 23-31.
David, F. R. (2004). Strategic Management. Upper Saddle River: Prentice-Hall.
Entrialgo, M., Fernandez, E., & Vazquez, C. J. (2000). Linking entrepreneurship and strategic management: evidence from Spanish SMEs. Technovation, 20(8), 427-436.
Falcone, P. M. (2019). Tourism-based circular economy in Salento (South Italy): A SWOT-ANP analysis. Social Sciences, 8(7), 216.
Handoyo, S. (2018). The Development of Indonesia Environmental Performance and Environmental Compliance. Journal of Accounting Auditing and Business, 1(1), 69-80.
Hill, T., & Westbrook, R. (1997). SWOT analysis: it's time for a product recall. Long range planning, 30(1), 46-52.
Joy, A., Sherry Jr, J. F., Venkatesh, A., Wang, J., & Chan, R. (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion theory, 16(3), 273-295.
Juneja, P. (2020). Steps in Strategy Formulation Process. Strategic Management. Management Study Guide. Retrieved from https://www.managementstudyguide.com/strategy-formulation-process.htm
Jung, S., & Jin, B. (2016). Sustainable development of slow fashion businesses: Customer value approach. Sustainability, 8(6), 540.
Kahraman, C., Demirel, N. Ç., & Demirel, T. (2007). Prioritization of e-Government strategies using a SWOT-AHP analysis: the case of Turkey. European Journal of Information Systems, 16(3), 284-298.
Kenton, W., & Mansa, J. (2020, July 28). Strategic Management. Retrieved from https://www.investopedia.com/terms/s/strategic-management.asp
Kim, A., Potia, A., & Wintels, S. (2020). Southeast Asia: A Region of Nuanced Opportunity. In M. &. Company, The State of Fashion 2020 (p. 26).
Kjellevand, M., & Kjellevand, M. (2018). Sustainable fashion: A study of information’s affect on sustainable shopping behaviour Is the more informed consumer a more conscious consumer? Attitudes and behaviour towards sustainable fashion (Master's thesis, Universitetet i Agder; University of Agder).
Kotler, P., Pfoertsch, W., & Sponholz, U. (2020). H2H Marketing: The Genesis of Human-to-Human Marketing. Springer Nature.
Kowalski, K. (2018, 11 23). Slow Fashion. Retrieved from https://www.sloww.co/slow-fashion-101/
Kurttila, M., Pesonen, M., Kangas, J., & Kajanus, M. (2000). Utilizing the analytic hierarchy process (AHP) in SWOT analysis—a hybrid method and its application to a forest-certification case. Forest policy and economics, 1(1), 41-52.
Lazuardi, A. S. (2019). Application of Demand Forecast and Material Requirement Planning in Fashion Small Medium Enterprise Case Study : Sukku Collective (Unpublished Bachelor Thesis). Institut Teknologi Bandung, Bandung, Indonesia.
Lenis Escobar, A., Rueda López, R., García Guerrero, J. E., & Salinas Cuadrado, E. (2020). Design of Strategies for the Implementation and Management of a Complementary Monetary System Using the SWOT-AHP Methodology. Sustainability, 12(17), 6849.
Li, G., Kang, Y. C., & Xu, G. (2015). Optimal decision for fashion supply chains with service level constraint and controllable lead time. Mathematical Problems in Engineering, 2015.
Maizer. (2016, March 21). Latest News. Retrieved from Indotextiles: https://www.indotextiles.com/index.php?option=com_content&task=view&id=4405&Itemid=72
Muzahidul, M., Akter, L., Pervez, A. K., Nabi, M. N., Uddin, M. M., & Arifin, Z. (2020). Application of combined SWOT and AHP for strategy development: evidence from pottery industry of Bangladesh. Asian Journal of Agriculture and rural Development, 10(1), 81-94.
Nikolic, D., Spasic, J., Zivkovic, Z., Djordjevic, P., Mihajlovic, I., & Kangas, J. (2015). SWOT-AHP model for prioritization of strategies of the resort Stara Planina. Serbian Journal of Management, 10(2), 141-150.
Nordin, R., & Bakar, S. S. A. (2012). Malaysian batik industry: Protecting local batik design by copyright and industrial design laws. International Journal of Business and Society, 13(2), 117.
Olum, S., Gellynck, X., Okello, C., Webale, D., Odongo, W., Ongeng, D., & De Steur, H. (2018). Stakeholders’ perceptions of agronomic iodine biofortification: a SWOT-AHP analysis in northern Uganda. Nutrients, 10(4), 407.
Waris, M., Panigrahi, S., Mengal, A., Soomro, M. I., Mirjat, N. H., Ullah, M., ... & Khan, A. (2019). An Application of Analytic Hierarchy Process (AHP) for Sustainable Procurement of Construction Equipment: Multicriteria-Based Decision Framework for Malaysia. Mathematical Problems in Engineering, 2019,1-20.
Ross, T. M., Jones, E. C., & Adams, S. G. (2008). Can team effectiveness be predicted?. Team Performance Management: An International Journal, 14(5/6), 248-268.
Roth, J. S., & Jacoby, D. (2009). Fashion, Copyright, and the Proposed Design Piracy Prohibition Act. IP Litigator, 15(6), 1.
Saaty, T. L. (1977). A scaling method for priorities in hierarchical structures. Journal of mathematical psychology, 15(3), 234-281.
Saaty, T. (1980). The Analytic Hierarchy Process. New York: McGraw-Hill.
Saaty, T. L. (1993). The analytic hierarchy process: a 1993 overview. Central European Journal of Operation Research and Economics, 2(2), 119-137.
Saaty, T., & Vargas. (2001). Models, Methods, Concepts and Applications of the Analytic Hierarchy Process. Boston: Kluwer Academic Publisher.
Schau, H. J., Muñiz Jr, A. M., & Arnould, E. J. (2009). How brand community practices create value. Journal of marketing, 73(5), 30-51.
Segura, A. (2016, June 01). Diversification and Segmentation in Fashion retail. Retrieved from https://fashionretail.blog/2017/06/01/diversification-and-segmentation-in-fashion-retail/
Statista. (2020). Fashion Indonesia. Retrieved from Statista: https://www.statista.com/outlook/244/120/fashion/indonesia
Stojčetović, B. V., Nikolić, Đ. M., Živković, Ž. D., & Bogdanović, D. M. (2019). Swot-ahp method application to determine current energy situation and define strategies for energy security improvement. Thermal science, 23(2 Part B), 861-872.
The Good Trade (2020). 35 Ethical & Sustainable Clothing Brands Betting Against Fast Fashion. Retrieved from https://www.thegoodtrade.com/features/fair-trade-clothing
The Jakarta Post. (2020, March). Indonesia still deserves special treatment in global trade: Economists. Retrieved from https://www.thejakartapost.com/news/2020/03/02/indonesia-still-deserves-special-treatment-in-global-trade-economists.html
The Saylor Foundation. (2013, September). Strategy Formulation. Retrieved from https://resources.saylor.org/wwwresources/archived/site/wp-content/uploads/2013/09/Saylor.orgs-Strategy-Formulation.pdf
UNESCO. (2015). Bandung. Retrieved from https://en.unesco.org/creative-cities/bandung#:~:text=About%20the%20Creative%20City%3A,hub%20for%20creativity%20and%20entrepreneurship.
Wagner, L. (2020, April 21). Fast fashion vs Slow Fashion. Retrieved from Sanvt: https://sanvt.com/journal/fast-fashion-vs-slow-fashion/
Weihrich, H. (1982). The TOWS matrix—A tool for situational analysis. Long range planning, 15(2), 54-66.
Wheelen, & Hunger. (2015). Strategic Management and Business Policy: Toward Global Sustainability. New York: Pearson Education.
Zarei, M., & Paghaleh, M. J. (2011). Strategic management of business in food industry: by an integrated deployment of AHP and freeman model. Business Management Dynamics, 1(3), 47-52.
Zavadskas, E. K., Turskis, Z., & Tamosaitiene, J. (2011). Selection of construction enterprises management strategy based on the SWOT and multi-criteria analysis. Archives of civil and mechanical engineering, 11(4), 1063-1082.
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Submitted
2020-09-12
Accepted
2020-12-15
Published
2020-12-30
How to Cite
Aldilax, D., & Pfoertsch, W. (2020). Application of Combined SWOT and AHP for Strategy Development: A Case of Slow Fashion Brand in Bandung, Indonesia. The Asian Journal of Technology Management (AJTM), 13(3), 213–228. https://doi.org/10.12695/ajtm.2020.13.3.3
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