Abstract: This study developed a set of quantitative indicators by combining Porter’s Five Forces model and Analytical Hierarchy Process for determining the best marketing strategy. Michael Porter’s industry analysis techniques was employed to identify the existing competitive advantages as well as the key factors of business success and to create the strategy framework for positioning a business in the plywood industry in South Sulawesi, Indonesia. The integration of Analytic Hierarchy Process and Porter’s Five Forces model can set up a series of procedure to evaluate the current strategy by prioritizing the important criteria for the company. The major advantage of applying this framework is that the company can systematically select an optimal marketing strategy. Through in-person interviews, a nine point-scale and Likert-type Scale Response Anchors (modified) was used to assign relative score to pair-wise comparison amongst corresponding criteria. The company studied chose the differentiation strategy that aims at creating highly perceived benefits for customers, developing innovative product design, offering pervasive customer services and unique product features, as well as developing and applying distinctive distribution channels and state-of-the art technology.
Keywords: strategic marketing, plywood industry, Porter five forces model, AHP.
Title: An Optimal Marketing Strategy For Indonesian Plywood Industry: A Decision-Making With Porter Five Forces Model And AHP
Author: Makkarennu, Badrullah
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1226 (online)
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