The Rise of Global Competition in the ASEAN Economic Community

Oct 13, 2025 by windailys.com 131 views

Business Planning and Development Strategy to Deal with the Free Trade of the ASEAN Economic Community: A Study at UD. Lutvi Pancur Batu Creation, Deli Serdang

Introduction

The Rise of Global Competition in the ASEAN Economic Community

In today's fast-paced business environment, competition is no longer limited to local markets but has expanded to the global stage, including within the framework of the ASEAN Economic Community (AEC). The AEC, which came into effect on December 31, 2015, has created a single market and production base, allowing for the free flow of goods, services, and investments among its member states. This has led to an increase in global competition, making it essential for businesses to adapt and improve their sustainable quality production.

The Importance of Business Planning and Development Strategy

In this context, business planning and development strategy play a crucial role in helping businesses navigate the complexities of the global market. A well-crafted strategy enables businesses to identify opportunities, mitigate risks, and stay ahead of the competition. This is particularly important for Small and Medium Enterprises (SMEs) like UD. Lutvi's creation, which has successfully penetrated the international market by becoming a Go-Export company since 2010.

Background of the Study

UD. Lutvi's Creation: A Success Story

UD. Lutvi's creation is a Small and Medium Enterprise (SME) that has made a name for itself in the international market. The business has focused on producing chips from sweet potatoes, which have been exported to countries such as Korea and Malaysia. Despite its success, the business faces stiff competition from similar products and companies. In this context, it is essential for UD. Lutvi's creation to implement the right business planning and development strategy to remain competitive and survive in the midst of increasing global competition.

Methodology

Qualitative Approach with Descriptive Design

This study employed a qualitative approach with a descriptive design to investigate the business planning and development strategy implemented by UD. Lutvi's creation. The method involved collecting data through observation and interviews with five informants, consisting of one key informant and four main informants. The data analysis technique chosen was SWOT analysis, which allowed researchers to evaluate the strengths, weaknesses, opportunities, and threats faced by the business.

Results

Business Planning and Development Strategy

The results of the analysis showed that UD. Lutvi's creation applies simple but effective planning, which serves as a strong foundation for the development of their business. The components analyzed in business planning include products, prices, promotions, locations, raw materials, competitors, and the role of government. In the context of business development, SWOT analysis showed an internal factor score of 2.79 and an external factor of 2.88, which positions this business in the quadrant I in the SWOT diagram. This indicates that the company is in a good position to implement an aggressive strategy by utilizing existing opportunities.

Discussion

Recommendations for Business Owners

Through the SWOT matrix, it is recommended that business owners take advantage of the Strength-Opportunity (SO) strategy and apply other relevant strategies to achieve competitive advantage. The use of the SO strategy will help UD. Lutvi's creation to explore further market potential and optimize existing resources, enabling the business to continue competing and developing.

Conclusion

Implications for Business Actors

This research provides important insights for business actors, especially SMEs, in developing effective strategies to adapt to changes in the global market, particularly within the framework of the ASEAN Economic Community. With proper planning and utilization of SWOT analysis, SMEs such as UD. Lutvi's creation can increase their competitiveness and sustainability in the global market.

Limitations of the Study

Future Research Directions

This study has several limitations, including the small sample size and the limited scope of the research. Future research should aim to investigate the business planning and development strategy of more SMEs in the ASEAN Economic Community to provide a more comprehensive understanding of the topic.

References

ASEAN Economic Community (2015). ASEAN Economic Community Blueprint 2025.
Lutvi Pancur Batu Creation (2010). Annual Report.
SWOT Analysis (2019). A Guide to SWOT Analysis.

Appendices

Interview Schedule
SWOT Matrix
Business Planning and Development Strategy of UD. Lutvi's Creation
Q&A: Business Planning and Development Strategy to Deal with the Free Trade of the ASEAN Economic Community

Frequently Asked Questions

Q: What is the ASEAN Economic Community (AEC)?

A: The ASEAN Economic Community (AEC) is a single market and production base that allows for the free flow of goods, services, and investments among its member states. It came into effect on December 31, 2015, and aims to create a highly competitive and integrated economy in the region.

Q: Why is business planning and development strategy important for SMEs in the AEC?

A: Business planning and development strategy is crucial for SMEs in the AEC as it enables them to adapt to the changing market conditions, identify opportunities, and mitigate risks. A well-crafted strategy helps SMEs to stay ahead of the competition and increase their competitiveness and sustainability in the global market.

Q: What are the key components of business planning and development strategy?

A: The key components of business planning and development strategy include products, prices, promotions, locations, raw materials, competitors, and the role of government. These components are essential in helping businesses to identify their strengths, weaknesses, opportunities, and threats.

Q: What is SWOT analysis, and how is it used in business planning and development strategy?

A: SWOT analysis is a technique used to evaluate the strengths, weaknesses, opportunities, and threats faced by a business. It helps businesses to identify their internal and external factors and develop strategies to leverage their strengths and opportunities while mitigating their weaknesses and threats.

Q: What is the Strength-Opportunity (SO) strategy, and how can it help SMEs in the AEC?

A: The Strength-Opportunity (SO) strategy involves leveraging a business's strengths to capitalize on opportunities in the market. This strategy can help SMEs in the AEC to explore further market potential and optimize existing resources, enabling them to continue competing and developing.

Q: What are the implications of this research for business actors in the AEC?

A: This research provides important insights for business actors, especially SMEs, in developing effective strategies to adapt to changes in the global market, particularly within the framework of the ASEAN Economic Community. With proper planning and utilization of SWOT analysis, SMEs can increase their competitiveness and sustainability in the global market.

Q: What are the limitations of this study, and what are the future research directions?

A: This study has several limitations, including the small sample size and the limited scope of the research. Future research should aim to investigate the business planning and development strategy of more SMEs in the ASEAN Economic Community to provide a more comprehensive understanding of the topic.

Additional Resources

ASEAN Economic Community (2015). ASEAN Economic Community Blueprint 2025.
Lutvi Pancur Batu Creation (2010). Annual Report.
SWOT Analysis (2019). A Guide to SWOT Analysis.

Conclusion

This Q&A article provides answers to frequently asked questions about business planning and development strategy to deal with the free trade of the ASEAN Economic Community. It highlights the importance of business planning and development strategy for SMEs in the AEC and provides insights into the key components of business planning and development strategy, including SWOT analysis and the Strength-Opportunity (SO) strategy.