A SWOT Analysis for Palm Sugar SME in Implementing E-Commerce: Case Study for Indonesia

Lebak Regency is known as one of the largest palm sugar producer area in Indonesia. This industry absorbs 5.406 workers through 2,982 business units. Production capacity per year reaches 2,249.4 tons spread in 44 production centers. Considering many sources of raw material for palm sugar in Lebak, the Local Government make palm sugar as the core competence of Lebak Regency Industry. However, in development of palm sugar industry, there are several obstacles including; production and technology constraints. This condition causes low competitiveness in the market. Thus, the objective of this study is to analyze and find business model for Small and Medium-Sized Enterprises (SMEs) of palm sugar industry in implementing e-commerce by using SWOT analysis method. This method is carried out with the following steps; a) Identifying internal and external factors, b). Determining Internal Strategy Factor Matrix (IFAS), c) Determining External Strategy Factor Matrix (EFAS), d) Mapping SWOT matrix, e) Determining Grand Strategy Matrix and f) Decision Making Phase. This research may help SMEs and government in developing a business strategy on how the best result of business models by optimizing IT. The result of this study shows that opportunity factor is bigger than threat factor, and SMEs still using strength factors to cover up weakness factor. The managerial/practical implications of the result are; SME’s should not only rely on traditional method. They must begin to establish their own strategy in order to reach competitive advantage by optimizing information technology. In addition, the local government must concern weaknesses factor in order to developing palm sugar SMEs. The originality of this paper is that this study is done in Lebak Regency of Banten, Indonesia with very limited SMEs adopted E-Commerce.