JOURNAL OF ENGINEERING AND MANAGEMENT IN e-ISSN 2477-6025

INDUSTRIAL SYSTEM VOL. 8 NO. 2 YEAR 2020 DOI: 10.21776/ub.jemis.2020.008.02.7

DEVELOPMENT OF BUSINESS STRATEGIES USING QSPM AND

SWOT ON SNAIL CHIPS

Lolyka Dewi Indrasari, Silvi Rushanti Widodo

Industrial Engineering Department, Faculty of Engineering, Universitas Kadiri

Abstract Strategy in the snail chips business is the topic of this research. The purpose of this study is to
determine the position of the company based on the SWOT results and the sequence of alternative strategies
found on QSPM. The stages of this research were to make observations at PT.X to determine the strengths,
weaknesses, opportunities, and threats of the snail product. The results obtained by the company lie in
quadrant II with a suitable strategy to increase resistance to reduce the danger that comes, while the order of
the choice of method is first to strengthen cooperation with new collectors, second to improve quality better
than competitors, third to plan delivery schedules if the volume of demand increases. Suggestions that can be
used by related companies are implementing alternative strategies on an ongoing basis and periodically
evaluating them.

Keywords: QSPM, Snail, Strategy, SWOT

1. Introduction be diverse [6]. With a business strategy, it

Today's global market has an impact on begins with knowing the position of the
companies in terms of ease of marketing their company using a SWOT analysis (Strength,
products from within the city and outside the Weakness, Opportunity, and Threat) [7]. Then
city. Business strategies in each line of fields an alternative plan is selected objectively using
need to be developed to get and produce QSPM (Quantitative Strategic Planning Matrix)
company goals [1]. [8]. The use of opportunities based on
It requires attractiveness to prospective opportunities, overcoming internal company
buyers, especially significant agents who are problems, and avoiding threats that arise are
willing to be part of the supplier. Companies strategies that companies can take when in the
will be helped and facilitated in terms of selling Opportunity - Strength position [9].
their products if there are suppliers. Strategic One of the companies that will develop a
planning must be able to compete with other business strategy is PT X, which is engaged in
competitors [2]. Various strategies exist today, the production of snail meat. Snail meat has
for example, namely selling through digital many benefits for the health of the body if it is
platforms that can penetrate multiple layers of the right way of consuming and the right
the market, especially potential buyers who are amount. The snail meat produced comes from
enthusiastic about online media [3]. If sales of the forest and is still alive when harvested.
products are carried out online, comprehensive When the snail meat arrives at PT X, the size of
evaluation and development of sustainable the snail is selected to meet the production-
strategies are used in the future [4-5]. The more worthy and marketable standards. If the snails
often the application of business strategies is do not meet the criteria, they will be separated
evaluated. It will lead to ideas that are for sale to local MSMEs.
systematic for further study and innovation. This research has a discussion related to the
Business strategy development innovations will business strategy that will be developed in the
marketing of snail meat, which has become a
snail chip product. The increasing competition
* Corresponding author. Email : lolyka@unik-kediri.ac.id for snail chip products will decrease in sales if a
Published online at http://Jemis.ub.ac.id
Copyright ©2020 JTI UB Publishing. All Rights Reserved
business strategy is not developed. Therefore,
the purpose of this study is to determine the

Cite this Article As Indrasari, L. D & Widodo, S.R. (2020). DEVELOPMENT OF BUSINESS
STRATEGIES USING QSPM AND SWOT ON SNAIL CHIPS. Journal of Engineering and Management in
Industrial System, 8 (2), p. 79-87.
Paper Accepted : October 10th, 2020
Paper Published : November 14th, 2020 79
JOURNAL OF ENGINEERING AND MANAGEMENT IN e-ISSN 2477-6025
INDUSTRIAL SYSTEM VOL. X NO. X YEAR XXXX DOI: XXXXX

position of the company and the sequence of sources. The first data collection technique was
techniques that should be used for the sale of carried out by observation, namely direct
snail chips. This study uses the SWOT method observation, recording information related to
to assess the status of the company, the use of research materials, secondly conducting
the QSPM process to determine the business interviews with company owners connected to
strategy used, and the results of an alternative strengths, weaknesses, opportunities, and
approach based on the quadrant of the firm's threats faced in selling snail chips products,
position. The research assumption used is that third, collecting references that supported the
there is no change in data related to strengths, research (Figure 1).
weaknesses, opportunities, and threats after the
observation. The results of this study are 3.1. Collecting SWOT Factors
expected to provide insight into business This phase tends to select strengths,
strategies using SWOT and QSPM for readers, weaknesses, opportunities, and threats to the
companies, and further researchers. company based on observations and interviews.

2. Literature Review 3.2. Weighting and Rating Each Factor

Activities carried out in a business Weighing each factor of strengths,
strategy function as an operation design for weaknesses, opportunities, and threats, each
marketing products in the form of goods and totalled the multiplication result of the weight
services and developing the company as well as with the rating. The total strengths and
knowing the company's position [9-11]. weaknesses must be worth 1.00, while the
Overall, SWOT analysis can be interpreted as unlimited opportunity with threats must be
an analytical technique to maximize strengths worth 1.00. Use of the rating value 1 = not
and opportunities and minimize weaknesses and important; value 2 = less important; value 3 =
threats [12-15]. QSPM analysis is a technique important; value 4 = very important applies to
to identify the best alternative strategies the strength and opportunity factors.
according to the company's position in the Meanwhile, the use of a rating of -1 = not
SWOT analysis [16]. important; value -2 = less important; value -3 =
important; the value -4 = very important applies
3. Research Methodology to the weakness and threat factors [21].
This research took place at PT.X, which Multiplying the weight with the rating will
is located in Kediri, East Java. The use of the produce the value of the total value of strengths
research object is the development of a business + weaknesses and opportunities + threats [22].
strategy for snail chip products using the
SWOT (Strength, Weakness, Opportunity, and 3.3. SWOT Coordinate Analysis
Threat) method and QSPM (Quantitative Multiplying the weight with the rating will
Strategic Planning Matrix). The operational produce the value of the total amount of
variable used is the development of a business strengths+ weaknesses and opportunities +
strategy conceptualized to determine the event threats which are used to find the coordinate
of a business strategy using the SWOT and points of the company's position with the
QSPM methods [17-19]. assumption in quadrant I, namely strength and
The first indicator used is the SWOT opportunity is the profitable situation, to take
method with factors obtained from the results of advantage of opportunities as extensive as
observations, including the strengths, possible or called aggressive growth [23]. In
weaknesses, opportunities, and threats of the quadrant II, namely strength and threat, by
company in selling snail chips. The second utilizing the power to reduce threats called
indicator is the QSPM method by implementing diversification [24]. Quadrant III, namely
alternative strategies based on the SWOT weaknesses and opportunities, to take
results related to the company's position in advantage of opportunities by minimizing
quadrants I, II, III, or IV [20]. The data used is weaknesses using technology reviews for new
between others, namely strengths, weaknesses, product offerings [25]. Quadrant IV, namely
opportunities, and threats with qualitative data weaknesses and threats, it is necessary to do a
types, then a literature review with quantitative defense strategy to try to reduce weaknesses
and qualitative data types with secondary data and avoid threats [26].

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INDUSTRIAL SYSTEM VOL. X NO. X YEAR XXXX DOI: XXXXX

Fig 1 Research Flowchart

3.4. Making SWOT Matrix in the alternative strategies used as shown in

The SWOT matrix is a description of the Table 2 [39-41].
opportunities and threats faced by the company,
which is adjusted to the strengths and 3.8. Interpretation of Data Processing
weaknesses of the company as a matching tool Results
of the four types of strategies S-O, W-O, ST Discussing the results of data processing
and WT as shown in Table 1 [27-30]. clearly and leading to the objectives of the
research.
3.5. Identify Alternative SWOT Strategy
Alternative SWOT strategies are obtained 3.9. Closing
from the results of the company's position on The closing series is to answer the research
the coordinates [32-36]. objectives and provide suggestions for the
company, future researchers, and for readers.
3.6. Calculating the Total Amount of In this research methodology chapter, a
Attractiveness Value frame of mind is used to make it easier to
The alternative SWOT strategy is used to understand the research flow as follows [42].
determine the strategy using each total
attractiveness value obtained from multiplying Table 1. SWOT Matrix
the weight value times the attractiveness value. Internal S W
External
The weighting of each factor of strengths,
O S-O W-O
weaknesses, opportunities, and threats is totaled T S-T W-T
by the multiplication of the weight with the
rating. The strengths and weaknesses in total Table 2. QSPM Diagram
must be worth 1.00, while the opportunities Strategic Alternative
with threats in total must be worth 1.00. Factor Weight Attractiveness Sum of
Meanwhile, the value of attractiveness on a Value Attractiveness
Value
scale of 1 = unattractive; scale 2 = slightly
A B AxB
interesting; scale 3 = attractive enough and Strenght
scale 4 = very attractive [37], [38]. If the a….
alternative strategy is unattractive, there is no b….
need to score it. The higher the attractiveness Weakness
a….
value, the alternative strategy will be used in b….
the development of a business strategy for the Opportunity
snail chip product. a….
b….
3.7. QSPM Strategy Alternative Decisions Threat
a….
The QSPM decision is the total value of b….
the attractiveness from the highest to the lowest

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INDUSTRIAL SYSTEM VOL. X NO. X YEAR XXXX DOI: XXXXX

Table 3. Internal and External Factors Rating and Weighting

Company Internal
No Strength Weight Rating Score (WxR)
1 Halal Labeled Products 0.12 2 0.24
2 Products Have Health Value 0.10 1 0.10
3 Wide Consumer Reach 0.13 2 0.26
4 Increase in Demand Volume 0.12 1 0.12
5 Superior to competitors 0.17 3 0.51
Total (S) 1.23
No Weakness Weight Rating Score (WxR)
1 Uneven Consumer Goals 0.10 -2 -0.20
2 Product Prices are still high 0.06 -3 -0.18
3 Less than request 0.06 -3 -0.18
4 Still focusing old customers in service 0.08 -3 -0.24
5 Raw materials cannot be cultivated 0.06 -2 -0.12
Total Internal Factor Weight 1.00 Total (W) -0.92
TOTAL VALUE S + W 0.31

Company External
No Opportunity Weight Rating Score (WxR)
1 Increased product needs 0.17 2 0.34
2 Lots of steamers popping up 0.12 1 0.12
3 Wholesale purchases are discounted 0.14 3 0.42
4 Many customers match the quality of the product 0.07 2 0.14
Total (O) 1.02
No Threat Weight Rating Score (WxR)
1 Emerging competitors at below-standard prices 0.09 -2 -0.18
2 Steaming-dependent raw materials 0.11 -4 -0.44
3 Delivery schedules are often late 0.10 -4 -0.40
4 Harvest raw materials depending on the season 0.20 -4 -0.80
Total External Factor Weight 1.00 Total (T) -1.82
TOTAL VALUE O + T -0.80

4. Results From Figure 2, the position of the company

From the data collection and processing, a is in quadrant II, namely strength and threat, by
weight calculation is obtained, a rating with the utilizing the power to reduce threats called
following score results (Table 3). From the total diversification [24]. In this position, the
value of S+W, the strength + weakness is 0,31, company must be maximized in developing the
while the O+T value is -0,80. The two values company's strength to overcome the various
coordinates are made to determine the position threats that come. To find out the suitability of
of the company. the factors to be formulated in the SWOT, it is
necessary to create a SWOT matrix (Table 4).

Fig 2 Company Position

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Table 4. SWOT Matrix

Opportunity Threat
1. Emerging competitors with below
1. Product needs increase standard prices
2. Lots of steamers popping up 2. Raw materials depend on the
3. Wholesale purchases are steamer
discounted 3. Delivery schedule is often late
4. Many customers match the 4. Harvest raw materials depending
quality of the product on the season
Strength 1. Halal label and health value 1. Increase cooperation with new
1. Products labeled halal increase product needs steamers to offset increased
2. Products have health value 2. Product quality in accordance demand volume and reach
3. Wide consumer reach with customer expectations, consumers more widel.
4. Increase in request volume wide reach of consumers and 2. Planning the schedule in a timely
5. Superior to comptetitors superior from competitors way in the event of an increase in
3. Wholesale prices are superior the volume of request.
to competitors that raise 3. Improve quality better than
competitors at affordable prices
Weakness 1. The increasing need needs to 1. Raw materials depend on the
1. Uneven consumer goals be segmented by the market steamer by planning and
2. Product price is still high to know the targets of old controlling to cope with the
3. Less inventory than demand consumers and new supply of raw materials
4. Still focus old customers in consumers 2. Approach with new customers to
service 2. The price of the product is invite cooperation and as a way
5. Raw materials cannot be still high will not be a of knowing the needs of products
cultivated problem if the need to be purchased so that there is
continues to increase as well no shortage of raw materials
as there is a wholesale 3. Cooperation with competitors to
system and discounts mix raw materials to make
3. Cooperate with new product prices affordable
steamers that can help
supply raw materials and
reduce constraints because
they cannot be cultivated

From the results of the SWOT analysis, the decision taken is to increase cooperation with
alternative strategy used is based on quadrant new collectors to process the inventory so that
II, namely maximizing the power to reduce the it can be used if there is an increase in demand,
threat of sales of snail chips products at PT.X on the other hand, it also provides supplies to
[10]. The proceed to the QSPM method with reach consumers outside the city and wider so
the results of the interest as shown in Table 5. that demand is met. In addition, planning is also
Based on the results of the QSPM matrix, 3 carried out in production control[10]. In this
alternative strategies were used which were case, the collectors who have subscribed for the
obtained from the results of the SWOT raw material for the snail chip product have
coordinates, then weighted with the weight already provided the main supplies to the
value equal to the weight on the SWOT, company because they already have an
multiplied by the value of attractiveness to agreement to take care of orders for raw
produce a total value of attractiveness [43]. Of materials for the company.
the three strategies, it will be used based on the Mixing quality raw materials with quality
order of the highest number of S + W + O + T below one high-quality level, to maintain
values [44]. The highest value is strategy I with affordable prices, but not reduce product quality
a total value of 5.21 then the second strategy III to below standard. Mixing of raw materials is
with a value of 4.39 and the third is strategy II used to get affordable prices to be marketed and
with a value of 2.83, which is summarized in to increase the loyalty of middle to lower class
the following Table 6. consumers. Because the problem of affordable
The order of alternative strategies is the prices will attract consumers if the raw material

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INDUSTRIAL SYSTEM VOL. X NO. X YEAR XXXX DOI: XXXXX

Table 5. QSPM Diagram

Internal Company Strategy I Strategy II Strategy III

N Variable Weight Attractiven Total Attractiven Total Attractiven Total

o ess Value Attractiveness ess Value Attractiveness ess Value Attractiveness
Value Value Value
Strengths (S)
1 Halal Labeled 0.12 2 0.24 3 0.36 3 0.72
Products
2 Products Have Health 0.10 1 0.10 3 0.30 3 0.30
Value
3 Wide Consumer Reach 0.13 4 0.52 4 0.52 2 1.04
4 Increase in Demand 0.12 3 0.36 4 0.48 4 1.44
Volume
5 Superior to 0.17 4 0.68 2 0.34 4 2.72
competitors
Weaknesses (W)
1 Uneven Consumer 0.10 1 0.10 2 0.20 4 0.40
Goals
2 Product Prices are still 0.06 1 0.06 2 0.12 2 0.12
high
3 Less than request 0.06 2 0.12 1 0.06 2 0.24
4 Still focusing old 0.08 2 0.16 1 0.08 1 0.16
customers in service
5 Raw materials cannot 0.06 4 0.24 2 0.12 1 0.24
be cultivated
Opportunities (O)
1 Increased product 0.17 4 0.68 4 0.68 1 0.68
needs
2 Lots of steamers 0.12 2 0.24 2 0.24 2 0.48
popping up
3 Wholesale purchases 0.14 4 0.56 4 0.56 2 1.12
are discounted
4 Many customers match 0.07 4 0.28 4 0.28 1 0.28
the quality of the
product
Threats (T)
1 Emerging competitors 0.09 4 0.36 2 0.18 1 0.36
at below-standard
prices
2 Steaming-dependent 0.11 1 0.11 1 0.11 1 0.11
raw materials
3 Delivery schedules are 0.10 2 0.20 2 0.20 1 0.20
often late
4 Harvest raw materials 0.20 1 0.20 1 0.20 2 0.40
depending on the
season
TOTAL VALUE S+W+O+T 5.21 2.83 4.39

Table 6. QSPM Strategy Order

Ord Attractiveness Value
Alternative Strategy
er (S+W+O+T)
Increase cooperation with new steamers to offset increased demand volume and
1 5,21
reach consumers more widely
2 Improve quality better than competitors at affordable prices 4,39
Planning schedules in a timely way in the event of an increase in the volume of
3 2,83
requests

has become a snail chip product [10]. To opinion on the quality of raw materials
achieve this achievement, collectors who have according to the standard of snail chips.
subscribed will be sorted from the raw material
supply of the snails for quality selection. 5. Conclusion
Quality selection is made to measure the quality From the results of the discussion, the
of the raw material if it is used for snail cracker conclusion obtained in accordance with the
products. In addition, collectors and companies purpose of the research is that the company's
must discuss with each other regarding pricing, position is at the coordinates of S+T by
in order to create inexpensive prices but an utilizing the power of reducing threats and the

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Acknowledgement Matriks SWOT dan QSPM ( Studi
Thank you to the Faculty of Engineering, Kasus : Restoran WS Soekarno Hatta
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research site, and thanks to the committee who Study : WS Restaurant Soekarno Hatta
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