STRATEGIC PLANNING OF INDONESIAN SKINCARE CLINICS.

Author:Fajartriyani, Aulia Putri
 
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INTRODUCTION

Small and medium enterprises are always faced with uncertain market conditions, always growing rapidly to make the competition very competitive. One form of small and medium enterprises that are growing rapidly now is the beauty clinic business. Some beauty clinics that are now often found in big cities are beauty clinics that combine facial and body beauty services, and skin health consultations. Bandung is a city with a large beauty product market, based on data from the data (Bandung City Central Bureau of Statistics, 2017) also seen from the population of women aged 15-64 years, as many as 887,456 people or 49% of the population of Bandung in 2018 , which is the target market of the beauty industry. This situation becomes a great potential that is utilized by the beauty industry services in the city of Bandung. The tendency of women to beautify themselves is closely related to the needs of women to come to beauty clinics.

The beauty clinic offers services by combining facial and body beauty services, and skin health consultations. Seen in Figure 1 several beauty clinic practitioners in Bandung:

Based on Figure 1 above, it appears that several skin care industry players in the city of Bandung have two to four branches. Alana skincare is a market leader in beauty clinics in the city of Bandung with the most branches, which has four branches viewed from the number of branches, length of stay, results of care, and market share. Competition between beauty clinics is getting tighter because it raises an innovation in the world of beauty in the city of Bandung. The innovations include several beauty clinics that have used sophisticated and modern tools to be used in dealing with facial problems and beautifying their consumers. Among the skincare clinics above, Rafa clinic is one of the techniques that have more than one branch, namely two branches in the city of Bandung. At present one of the cities that have become a trend in the beauty industry is the city of Bandung. Competition between beauties clinics in the city of Bandung is very strict accompanied by fashion trends among women is increasing.

Rafa beauty clinic is located in the city of Bandung, there since 2005. Currently, Rafa clinic has 3 branches spread in Bandung and Garut. Rafa clinic is engaged in the field of aesthetic medicine, anti-aging medicine, and herbal aesthetic. The clinic is currently supported by high-tech equipment that is always the foremost, innovative and complete in overcoming all health and beauty problems. The Rafa clinic has a complete range of treatments ranging from toe to head. Available medical and non-medical treatments as well as safe and clinically tested care products that are tailored to the type and problem of the skin. Accompanied by doctors, pharmacists, pharmacy and beauty therapists who are trained, professional, experienced and certified. With the motto "Beauty Aesthetics with Smart Way", Rafa is very following the times in terms of skincare, slimming and more.

Consumers will be more selective in choosing a beauty clinic that will be a place to subscribe, by looking at the services provided. Because, good service is also an important thing in the success of the beauty business. Rafa clinic always strives to provide the best service for its consumers, but more and more competitors also provide different services for their customers. Also, consumers will choose beauty clinics that can provide cheaper prices with services that are not reduced at all. There is a problem with the Rafa clinic compared to other skin care clinics that is, every consumer is charged a fee when consulting a beauty doctor, but at several other beauty clinics, the consultation process is free. Consumers also become more selective in choosing cheaper prices with the same quality products and services, because consumers prefer services and products at the lowest possible prices.

Every company will try to compete with other companies that produce replacement products. With its ability to satisfy needs that are not much different from consumers, but with different characteristics, the price of a substitute product can be the highest limit of the price set by a company. Thus, a replacement product performs the same or similar function or service. This is certainly a pretty heavy problem faced by the Rafa clinic. Some examples of beauty products that can replace Rafa clinic products are Ashanty beauty skincare, Ertos facial treatment, Helwa beauty, EMK beverly hills, and Dissy cosmetics.

If you look at the problems faced, there is a need for a strategic planning analysis that will certainly strengthen the existence of the Rafa clinic to keep attracting public attention. The identification is in line with what was revealed (Porter, 1980: 1996: 1997; Rulmet, 1984) there are five competitive forces in an industry, namely the threat of the entry of new entrants, the threat of substitute products, the bargaining power of buyers, the strength of supplier bargaining power, competition among competitors. These five competitive forces determine the intensity of competition and profitability in the industry and will be very important in the formulation of the company's strategy. The state of competition in an industry depends on the five competitive forces.

This research was conducted by analyzing the strategic planning that will be carried out by the Beauty clinic by using the analysis of Five Forces Porter and 7S McKinsey, and then analyzed through External Factor Analysis Strategy (EFAS) And Internal Factor Analysis Strategy (IFAS) with approaches to Strengths, Weakness, Opportunities and Threats (SWOT) analysis. With this analysis, it is hoped that it will produce further identification of the formulation of competitive strategies that can be done by the Rafa clinic to continue to exist in a society that has cared a lot about appearance, especially skin and body beauty.

LITERATURE REVIEW

Strategic Planning

Business strategy is a comprehensive planning formula on how the company will achieve its objectives, taking into account its internal and external environment to maximize competitive advantage and minimize competing limitations (Rumelt et al., 1991; Teece, 2010). Strategic planning is part of strategic management. Strategic planning focuses on how top management determines the company's strategy to achieve company goals in the long run (Thune & House, 1970; Wheelen & Hunger, 2010). Strategic planning is a systematic effort something formal from the company, to describe the main form of the company, objectives, policies, and strategies, to achieve the target and the main form of the company concerned in managing the company today to do future projections (Kerzner, 2001: 2004).

Strategic planning is an effort made by a company to develop the company's vision and mission, culture, and business strategies needed to be implemented to achieve the company's targets (Haines, 2010). Strategic planning as a way to determine fundamental decisions to form and guide an organization with the aim of what must be done (Bryson, 1988).

In preparing strategic planning, it is necessary to formulate the goals and objectives to be achieved by the company. The essence of strategic planning is knowing the opportunities and threats in the future, with the choice of steps needed and more appropriate to achieve the desired situation explicitly related to management of change and includes a series of innovations and changing companies (Ansoff, 1965: 1968: 2005; Simons, 1994; Rulmet, 1984; Ginsberg & Venkatraman, 2011; Nickols, 2016; Dey et al., 2010).

7S McKinsey Framework

The 7S framework was developed in the early 1980s by Tom Peters and Robert Waterman. There are 7 factors which are interdependent, each grouped into soft & hard elements. Soft elements are more difficult to describe, less tangible and influenced by culture, namely: shared values, skills, style, and staff. Hard elements are easier to define and determine and management can directly influence it, namely: strategy, structure, systems. 7S from McKinsey or better known as McKinsey 7S Framework is a management model to see how effective the organization is in achieving its desired goals (Savkin, 2015; Kaplan, 2005).

Five Forces Porter

According to Porter (2008a: 2008b) there are five competitive forces in an industry, namely the threat of the entry of new entrants, the threat of substitute products, the bargaining power of buyers, the strength of supplier bargaining power, competition among competitors. These five competitive forces determine the intensity of competition and profitability in the industry and will be very important in the formulation of the company's strategy.

IFAS and EFAS

According David & David (2016) the steps taken in the formulation of the strategy for the main stage are the formulation of a strategy consisting of IFAS (Internal Factor Analysis Strategy) is a strategy formulation tool used to summarize and evaluate the main strengths and weaknesses in the scope of business functions, and also becomes the basis for identifying and evaluating the relationships between...

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