COMPETITIVE ADVANTAGE STRATEGY TO INCREASE SALES OF PT ABC'S LAYER FEED

: In Indonesia, the potential demand for eggs was still high from time to time reaching 5.2 million tons in 2021, triggering every animal feed company to compete in providing the national demand for eggs. PT ABC was one of the animal feed mills that experienced a decline in market share of 1.92% in 2021. This paper aims to identify the factors influence product competitive advantage, analyze internal and external factors, and formulate strategies to increase market share. Data was analyzed using IFE, EFE, IE, and SWOT matrix and ended with QSPM to get priority strategies from December 2022 until January 2023. The highest competitive advantage factor at PT ABC was in the after-sales service to customers with the highest priority strategy for the development of products to increase market share was increasing feed production while maintaining quality and the market penetration strategy was strengthening cooperation with third parties to facilitate business. Two priority strategies could be implemented for PT ABC. First on the product development strategy to increase feed production while maintaining quality and strategy regarding market penetration was sales segmentation to retail traders and direct breeders.


INTRODUCTION
Eggs were one of the main sources of protein for humans.Eggs were considered a perfect food, by the trend of consuming natural products and minimally processed (Tomczak et al. 2021).According to Czarnowska-Kujawska et al. ( 2021), Europe's largest producers were Germany, France, Spain, Italy, Poland, the Netherlands, and England.Livestock commodities in Indonesia growing faster specifically in the poultry business (Guntoro, 2009).From data from the Directorate General of Livestock and Animal Health (Dirjen PKH) from 2017 to 2021 there has been an increase every year in terms of the production and demand for purebred chicken eggs in Indonesia as shown in Figure 1.In 2017 balanced production and demand reached 4.6 million tons and finally, in 2021 it will increase to 5.1 million tonnes.Production will increase 0.28 percent from 2020.In 2022 it was estimated to reach 5.3 million tons with an increase of 5.4 percent from 2021 (Dawami, 2022).
To meet egg production in farmers must be supported by good feed.Good animal feed nutrition was obtained by making it yourself or buying it directly from the feed industry (Surya, 2021).The animal feed industry in Indonesia comes from domestic and foreign companies.Figure 2 shows the market share of each company in 2020.
PT ABC only controls 2.13 percent of the Indonesian market share.As a profit-oriented company, PT ABC needs to have the right strategy to increase market share in the animal feed industry in Indonesia.PT ABC from 2017 has a downward trend in terms of national market share, which was from 2.94 percent to 1.92 percent.The expected target of the company was 3.10 percent market share.The decline in market share was shown in Figure 3.One of the goals in increasing sales was to maximize the production capacity of the company.
The right strategy to increase competitive advantage was needed to increase sales.The analysis begins by identifying the problems that exist in PT ABC.After knowing the problems faced, it was continued to review the current conditions of PT ABC using the IFE and EFE matrices.Alternative strategies will be formulated with QSPM to determine strategic priorities with questionnaires with experts in their fields.Then determine the priority strategy to be implemented.
Strategy can also be interpreted as a plan for the distribution and use of military power in certain areas to achieve certain goals (Tjiptono, 2006).Strategy is a large-scale plan, with a future orientation that was useful for interacting with competitive conditions to achieve goals (Pearce and Robinson, 2008).Strategy was also an action or activity carried out by a person or company to achieve the goals or objectives that have been set.(David and Fred, 2011).Competitive advantage strategies can be carried out using the Value Chain analysis (VCA) tool and using the VRIO approach to formulate corporate strategy (Arfiyunanto, 2019).These factors of competitive advantage were consistent with the opinion of Bharadwaj et al. (1993) regarding price and product trust.Diab (2014) also states the factors of competitive advantage in terms of price, flexibility, quality.After-sales service was a factor of competitive advantage supported by Vernando's research (2020).To determine strategies for increasing competitive advantage, it was necessary to approach the AHP method (Bijaksana, 2019).

METHODS
Research was conducted at PT ABC where it focused on consumer farmers in West Java and internal parties from the company.Data collection and processing was carried out in December 2022 -January 2023.The approach taken was a qualitative approach, where data collection was carried out using a questionnaire survey method of pre-determined sources.
This research uses primary and secondary data.Primary data was obtained from questionnaires with PT ABC and customers.Secondary data comes from the company's vision and mission and various literature.
To determine the respondents for this study, expert judgment was used.
Data collection was carried out by questionnaires, literature studies and interviews.Questionnaires were conducted with company management, consumers, and external parties such as breeders, animal feed observers, etc.This questionnaire uses a 1-4 Likert scale.Literature study was carried out by reading and studying books, theses, journals, and so on related to the problem being researched.An interview was a conversation between two or more people and takes place between the source and the interviewer.The data collection and analysis process was carried out simultaneously and dynamic.Data processing and analysis techniques were summarized in Table 1.
The sampling technique was carried out using purposive sampling because the respondents needed were people who had experience in this field so that the data obtained was accurate and useful for this research.Respondent data in this research can be seen in Table 2. Sugiyono (2009) stated that descriptive analysis was a statistical analysis method that aims to analyze data by describing the data that has been collected and processed.The Internal Factor Evaluation (IFE) matrix was a strategy formulation tool for evaluating and summarizing the main strengths Meanwhile, according to Kurtz (2008), the notion of marketing strategy was the entire company's program in determining target markets and satisfying consumers by building a combination of elements from the marketing mix of products, distribution, promotion, and price.Kastoyo (2013) states that an analysis of agro-tourism development strategies can use the QSPM method with results through promotion and government cooperation.Mandang (2013) in his research found a market penetration strategy with the QSPM method can create an effective business strategy for companies.According to Kotler and Armstrong (2012), a marketing strategy is a plan that outlines a company's expectations of the impact of various marketing activities or programs on the demand for its products or product lines in certain target markets.Assauri (2012) states that marketing strategy is a set of goals and objectives, policies, and rules that give direction to a company's marketing efforts from time to time.Setroyini et al. (2016) with their research entitled marketing strategy analysis using the SWOT matrix and QSPM.
Market share was a measurement of marketing performance or operational performance that can differentiate between winners and losers (Kotler, 1997).strategy (WT).According to David and David (2019) the QSPM analysis tool has the goal of formulating the best company priority strategy, where the highest score indicates the top priority strategy to be implemented in the company's business development.
This analysis focuses on increasing the competitive advantage of PT ABC's laying chicken animal feed products.The right strategy to increase competitive advantage was very necessary to increase sales.The analysis begins by identifying the problems that exist at PT ABC.After knowing the problems faced, we continued reviewing the current conditions of PT ABC using the IFE and EFE matrices.Alternative strategies will be formulated using QSPM and determining strategic priorities using a questionnaire with experts in the field.Then the strategic priorities to be implemented were determined.The framework of thinking can be seen in Figure 4.
and weaknesses of company functions (David and David, 2019).The External Factor Evaluation (EFE) matrix was a strategy formulation tool for evaluating and summarizing opportunities and threats from external factors such as economic, social, cultural, demographic, environmental, political, government, legal, technological, and competition (David and David, 2019).A competitive analysis approach known as Porter's Five Forces Model was often used in various industries to develop strategies (David and David, 2019).The most common methods and ways used to consider the external business environment were political, economic, social, technological, legal, environmental or PESTLE analysis (Gupta, 2013).
According to David and David (2019)   that improving service quality to understand customer needs can increase sustainable economic growth and competitive advantage through a marketing mix strategy.After-sales service can also increase market share because it influences buyer decisions (Ramadani, 2022).
Furthermore, the consistency of the physical quality of the feed in feed quality (3.5) and the consistency of the quality of feed performance for livestock (3.45).These results were supported by research by Asyari et al. (2018) where product quality in business strategy and ethical behavior of sellers has a partially positive effect on competitive advantage.Suparyadi (2003) states product quality in terms of taste, color and durability can affect the competitive advantage of a product.Product quality can increase product returns through market share relationships (Kroll et al. 1999).Balachander et al. (1994) also stated that when product quality increases, competitive advantage increases as well.Regarding increasing market share, Nurhasanah (2006) stated in his research that maintaining product quality was a good marketing strategy to increase market share.

Factor Analysis of PT ABC's Competitive Advantage in the Animal Feed Industry in Indonesia
Factors that influence competitive advantage were taken from the opinion of Hayes and Schmenner (1978) were price, feed quality, product confidence, product flexibility, flexibility in the amount purchased and aftersales service.Below factors competitive advantage of PT ABC shown on Table 3.Based on all the assessments above, the factor that influences PT ABC's competitive advantage with the highest score was service facilities to customers (3.6).In line with Barusman and Ramlee (2021) optimizing the marketing sector, one of which was service, can achieve a sustainable competitive advantage.Millet (2008) states that after-sales service was an important element in expanding the product life cycle and was an integral part of the product definition life cycle, utilizing the latest information for maximum efficiency and effectively providing knowledge about customer needs and serviceability for new products.Rigopoulou et al. (2008) also stated that after-sales service influences customer satisfaction and repurchase intention.Syapsan (2019)  the provision of feed prices to customers (2.95), and the provision of promos or discounts on feed prices to customers (2.85).

Analysis of Internal Environmental Factors
The company's internal environmental factors were analyzed by looking at human resources, marketing, company policies, infrastructure, and product development.Result of analysis of internal enviromental factors shown on Table 4. From the analysis of internal environmental factors, three strengths can be seen from the weighted score, namely after-sales facilities for customers (0.411), product trust by consumers (0.401), and consistency of feed performance quality for livestock (0.372).
For product trust by consumers (3.35), previous research by Nursya'bani and Setiawan (2003) states that a company's product reputation was the most important source of competitive advantage.Algame and Pirzad (2017) also stated in their research results that product reputation responsibility plays a key role in organizational variables and achieving competitive advantage.Mai et al. ( 2021) also stated that building a strong reputation in product trust creates a source of competitive advantage for companies.Product trust also influences the buyer's decision (Febrianti 2013) so that it affects the company's market share.
On the flexibility of specifications for the form of feed to customers (3.10), the flexibility of specifications for the nutrition of feed for customers (3.05), the flexibility of specifications for the amount of feed ordered (3.05), competition (Dominique & Antunes, 2019).In Table 4 in the EFE matrix a total score of 2.81 was obtained.The score was above the average, which shows the company has a strong internal position.

Analysis of External Environmental Factors
External environmental factors from the company were observed using the Porters five models and PESTLE methods.The PESTLE criterion was an external analysis in terms of political, economic, social, technological, legal and environmental factors.The criteria for porter five porters include new business actors, threat of substitute products, bargaining power of buyers, bargaining power of suppliers, and competition in the industry.Result of analysis of enviromental factors shown on Table 5.
In previous research it was stated that good raw material control strength can reduce contamination in animal products that will be consumed by humans (Nakavuma et al. 2020).The quality of feed performance was greatly influenced by factory process control and product control programs (Lachapelle et al. 2021).
The quality of after-sales service was also a major force in maintaining customer relationships in strategy development (Rachmani et al. 2019).
There were three weaknesses, namely providing promotions or discounts on feed prices to customers (0.191), providing feed prices to customers (0.209), and flexibility in specifications for feed ordered (0.226).This becomes the company's input regarding the strategy that will be implemented.Buyers were more dependent on sellers who have long credit (Brandon, 2018), and also prices become sensitive in purchasing  6.
PT ABC has IFE and EFE values of 2.81 and 2.84 and then the company's position was obtained in matrix V, which means that the company's position was in guarding and defense.The strategy implications that can be used in this position were market penetration, product development in market development (David, 2009).According to Alamanda et al. (2019) market penetration strategy can increase the product's market share.New product development to attain greater market share and tries to motivate industry (Yousefi et al. 2016).
The strategies from the SWOT matrix can be grouped according to the strategy proposed by David (2019) through the IE matrix.Product development strategies can be organized into six strategies and market penetration strategies can be arranged into five strategies in the following Table 6.

Priority Strategy (QSPM)
Analysis using the QSPM matrix was the final stage in this study, namely determining strategic priorities.In this stage, all the strategies that have been formulated using the SWOT Matrix will be sorted according to the level of needs of PT ABC where all weights in the calculations for ranking these strategies were obtained through interviews with the respondents concerned and experts in PT ABC's business.
The strategies from the SWOT matrix can be grouped according to the strategy proposed by David (2009) through the IE matrix.Product development strategies can be arranged into six strategies and market penetration strategies can be arranged into five strategies in the following Table 7.
There were three highest opportunities seen from the weighted score on the EFE matrix, including the increasing price of eggs (0.168), the influence of the environment or nature on feed (0.161) and the efficiency of the production process in the company (0.160).The three threats include slow feed registration (0.077), weakening of the rupiah exchange rate (0.088) and the effect of elections on feed purchases (0.098).
Previous research stated that the opportunity for increasing egg prices resulted in breeders having the option to add more chickens rather than selling the existing chicken stock (Auler et al. 2009).Mani et al. (2000) stated that producers were very sensitive to feed and egg prices.In Table 5 in the EFE matrix a total score of 2.84 was obtained.The score was above the average, which shows the company was currently able to respond to opportunities and threats that exist.

Internal and External Matrix Analysis
Internal and external matrix analysis (IE Matrix) was carried out to see the company's position in a matrix consisting of nine cells and divided into three company conditions, namely strong, medium, weak or high, medium and low.Each condition has different strategy Figure 5. IE Matrix PT ABC The results of the QSPM analysis show that the highest TAS (Total Attractive Score) score was for product development strategy was Increase feed production while maintaining quality with a TAS score of 5.33.The strategy was to increase feed production while maintaining quality.This strategy was needed by the company for market growth which results in increasing market share for PT ABC.For market penetration strategy was Sales segmentation to retail traders and direct breeders with a score of 5.23.

Managerial Implication
Strategy implementation can be described in the form of a five-year long-term strategy activity.There were two priority strategies with the highest TAS scores chosen by management with four activities to improve the company in the future.Firstly, increasing feed production while maintaining quality.This strategy can support competitive advantages in maintaining feed quality and product confidence according to those obtained from previous data.

Conclusions
Factors that influence competitive advantage to increase sales of animal feed for PT ABC's laying hens were aftersales facilities to customers, followed by consistency in the physical quality of feed in feed quality, consistency in the quality of feed performance for livestock, product trust by consumers, flexibility in feed form specifications to customers, flexibility in feed nutrition specifications for customers, flexibility in specifications for the quantity of feed ordered, providing feed prices to customers, and providing promotions or discounts on feed prices to customers.
Internal factors regarding PT ABC's strengths were aftersales facilities for customers, consistent physical quality of feed, and consistent quality of feed performance for livestock.The weaknesses were the high price of feed to customers, the difficulty of flexibility in specifications for feed ordered and the lack of providing promotions or discounts on feed prices to customers.Of the external factors, there were three highest opportunities, namely the increasingly expensive price of eggs, the influence of the environment or nature on increasing feed consumption and the innovation of finding efficient production process tools in companies.The threat of slow feed registration, the weakening of the rupiah exchange rate and the effect of the election on feed purchases.
The formulation of alternative strategies resulted in eleven strategies, namely increasing feed production while maintaining quality, increasing promotion and training for breeders, company cost efficiency, targeting sellers to small breeders of at least 1000 heads, increasing collaboration with partners for research, increasing the use of local raw materials, strengthening cooperation with third parties to make business easier, use of Anti-Growth Promoter (AGP) with veterinary supervision, feed registration two years before the feed name expires, sales segmentation to retail traders and direct breeders, determining sales positioning by customizing.
There were two priority strategies that PT ABC can apply to increase sales, which were product development strategies, namely increasing feed production while maintaining quality.The priority strategy in market penetration was sales segmentation to retail traders and direct breeders.

Recommendations
Suggestions for the management of PT ABC was the need to consider adding an after-sales team to accompany feed sales.and also needs support from the production department in providing good feed in large quantities.
After the implementation of the activity strategy was carried out, further research was needed to find out how big the impact of the implementation was on the resulting market share.
FUNDING STATEMENT: This research did not receive any specific grant from funding agencies in the public, commercial, or not -for -profit sectors.

CONFLICTS OF INTEREST:
The authors declare no conflict of interest.

Figure 1 .
Figure 1.Production and demand for purebred chickens in Indonesia in 2017-2021

Table 2 .
Respondent of analysis the SWOT matrix was a matching tool that managers can develop with four types of strategies, namely strength-opportunity (SO) strategy, weakness-opportunity strategy (WO), strength-threat strategy (ST), and weaknesses-threats Tabel 1. Stages of data processing and analysis in his research results states Chicken egg production increases every year PT ABC only controls 1.92% of the national market share (target 3.10%) Analysis of competitive advantage factors(Hayes and Schmenner,1978) Indonesian Journal of Business and Entrepreneurship,

Table 3 .
PT ABC's competitive advantage factor data

Table 5 .
Internal environmental factors matrix

Table 6 .
Alternative strategy