Strategy Analysis of Laying Chicken Business Development in Semarang City

The business of laying hens has a strategic position in improving the quality of human resources through the provision of animal protein and improving the welfare of the farming community. This study aims to analysis the internal and external factors that must be faced by farmers in business development and competition in the city of Semarang and to formulate alternative strategies for developing laying hens that are appropriate to be implemented in the city of Semarang. This research is a descriptive study with a qualitative approach, the researcher analysis business strategies through a SWOT analysis which includes: strengths, weaknesses, opportunities and threats faced by entrepreneurs in increasing the competitiveness of laying hens breeders in Semarang City. The core strategy that can be applied by laying hens in the city of Semarang is the strategy Growth and Build (grow and develop) through an intensive strategy or an integration strategy. Based on the position, livestock in the city of Semarang is in quadrant I in the IE matrix, which illustrates that the livestock business in the city of Semarang is in an average internal condition and the response to external factors is high.


INTRODUCTION
. The laying hens business has a strategic position in improving the quality of human resources through the provision of animal protein and improving the welfare of the farming community.The laying hens sector is an important sector, because it is from this sector that some of the animal protein needs for humans are met, namely eggs and meat (Bernardo, 2014); (van Staaveren et al., 2018); (Gonzalez-Mora et al., 2021).Therefore, the laying hens farming sector must be handled seriously, so that it can provide benefits in accordance with human needs.The success of a laying hens farm is largely determined by marketing (Watnick, 2016;Hsu, 2011;Mohammed et al., 2013;Wilson and Wong, 2003).The main production of laying hens is eggs, while meat is a by-product in the form of rejected chickens (Memon et al., 2015;Swiatkiewicz et al., 2010).Rejected chickens are old chickens aged about 100 weeks and their production is not economically profitable (Hendrik, 2011); (Świaţkiewicz et al., 2010); (Hassan et al., 2018).
The global trade climate, which is starting to be felt at this time, is increasingly allowing broiler egg products from Indonesia to enter foreign markets, considering that broiler meat and egg products are elastic to changes in per capita income per year of a country (Sirajuddin & Hidayati, 2016).The business development of laying hens has profitable business prospects, because demand and prices tend to always increase.Of the many opportunities that exist, there are several obstacles and obstacles such as the provision of seeds, feed, medicines/vaccines and other production factors causing the agribusiness of laying hens to be developed by the community, especially in the city of Semarang.The unavailability of vital production factors such as seeds, feed and medicines/ vaccines at stable prices, makes it difficult for farmers to predict and calculate profitable businesses.
In the city of Semarang, laying hens have developed quite a bit, this can be seen from the presence of other laying hens.However, the development of laying hens in the city of Semarang is still less than the total production in other cities/ districts in Central Java.This becomes a potential and opportunity in the development of laying hens farming business.Apart from the potentials and opportunities mentioned above, there are also some major threats to entrepreneurs in the city of Semarang.Where there are several new entrants as suppliers of eggs with relatively cheaper prices.In addition, various other weaknesses that have not been able to be addressed properly include the number of egg production that has not been maximized, human resources, both quality and quantity that are less supportive and fluctuations in production input prices.
Of the many strengths and weaknesses as well as opportunities and threats that exist, only a few have been identified.For this reason, further research is needed, especially the strategy for developing the laying hens business and analysis of the competitiveness of the laying hens business from various factors both financially and which are the strengths, weaknesses, opportunities, and threats of the laying hens business which will later produce a strategy that appropriate and able to compete (Hidayati, 2017); (Kurniawan & Guntoro, 2011).The potential for the development of the laying hens market owned by Semarang City needs to be utilized properly by entrepreneurs to increase sales and dominate the market.Therefore, a mature business development strategy is needed and increases competitiveness among laying hens in Semarang City.
Several other problems that arise and are often faced by livestock include the price of duck feed which is increasingly expensive, the facilities or infrastructure in the cage are inadequate and tend to be traditional (Hegelund et al., 2006).The absence of license business also does not support farmers to freely market their eggs (Ekapriyatna et al., 2016).In addition, the erratic weather that cannot be predicted by farmers, competition between farmers within the village and outside the village can affect the income of farmers indirectly or indirectly (Fauzia et al., 2018).Based on the background that has been stated above, the author intends to conduct research on the analysis of farmer strategies in the city of Semarang.

RESEARCH METHOD
In carrying out this study, a descriptive research approach was used with a qualitative approach, researchers analyzed business strategies through SWOT analysis to identify and analyze the strengths, weaknesses, opportunities, and threats in the development of laying hens in the city of Semarang and formulate alternative development strategies.laying hens in the city of Semarang.The research data was collected using survey methods and data collection techniques using observation and interviews.The sample of this research was taken by purposive sampling based on three subdistricts that have the largest population of laying hens, namely Mijen sub-district on Lembu Suro Farm (Suwarno-54 years old), Ngaliyan on Bu Sari's farm (Ni Nengah Kartika Sari-51 years old), and Gunung Pati District on Maryanto's farm (Maryanto-48 years).
Data analysis was carried out using SWOT analysis of the internal environment (strengths and weaknesses) and the external environment (opportunities and threats).The results of the identification of the factors are then given weights and ratings.The weight value is multiplied by the rating value to obtain a score for all determinants (Rangkuti, 2008).According to Ommani (2011), Osita et al. (2014) and Abubakar (2013) that the analysis of internal factors and external factors can provide an overview of how the marketing strategy of livestock products (eggs).Internal analysis is to determine the factors that become the strengths (strengths) and factors that become the weaknesses (weaknesses) of the business.Furthermore, these internal factors were analyzed using the IFE (Internal Factor Evaluation) matrix.Likewise external factors, these factors can be opportunities (opportunities) and threats (threats).External factors will then be analyzed using the EFE (External Factor Evolution) matrix.
The stages of formulating alternative marketing strategies consist of the input stage, the matching stage, and the strategy/decision stage.The input stage is the stage of summarizing the basic input information needed to formulate a marketing strategy.The input obtained is then described in the EFE (External Factor Evaluation) matrix and the IFE (Internal Factor Evaluation) matrix.The matching stage is a stage that focuses on generating viable alternative strategies based on the company's external and internal factors.These factors have been described in the SWOT matrix (Strength, Weakness, Opportunities, Threats).Furthermore, the strategy/decision stage is carried out after obtaining alternative strategies through the SWOT matrix.After obtaining several alternative strategies through SWOT analysis and the I-E matrix, the next stage is the strategy selection stage using the QSPM (Quantitative Strategy Planning Matrix).This technique objectively shows the best alternative strategy.The selection of this priority strategy is carried out by the owner of the laying hens farming business through in-depth interviews so that a priority sequence of strategies that must be applied is produced.

RESULT AND DISCUSSION
The Analysis in research on the development strategy of laying hens agribusiness is used in several ways, namely matrix analysis of IFE and EFE (internal and external environment), and SWOT analysis.Internal factors are the environment that is within the scope of the company itself.The company's internal environment consists of human resources, capital and finance, production and operations aspects, and marketing aspects.Internal environmental analysis is very important for the company to find out its strengths and weaknesses.This can help companies to determine the right strategy in company development.The factors internal include: Human Resources, Production and Operation Aspects, Capital and Finance, Marketing Aspects.
While external factors are used to find the right livestock development strategy, it is necessary to analysis the external environment.The external environment is the environment outside the company.The external environment consists of the macro external environment and the micro or industrial external environment.External factors include: 1) Macro External Environment, namely the macro external environment consisting of economic, socio-cultural aspects, government and political policies, and technology.Changes in the environment can cause changes in consumer demand for products or services, both for industry and consumers.2) Micro External Environment, namely the company's micro external environment includes the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, the threat of new entrants, and competition among existing competitors.This environment includes: Threat of entry of new entrants, Threat of substitute products, Bargaining power of suppliers, Bargaining power of buyers, Competition among existing competitors.
The analysis of external and internal factors affects the commodities produced by laying hens which is a very good market prospect, because chicken eggs are a commodity that is quite easy to obtain or is a public good, easy to consume, rich in important nutrients needed by the body, such as protein, vitamins A, D, E and B, phosphorus and zinc and the price is relatively cheap, making this chicken egg commodity in great demand by the public.This condition is very good to be used by laying hens in Semarang City to further develop laying hens farms to be more optimal (Hedlund et al., 2019).While laying hens are chickens that are reared with the aim of being able to produce lots of eggs, so that potential development and resource management are needed to get good results (Faleiro et al., 2015).
Based on analysis of internal factors such as the strength (strength) and weakness (weakness), as well as the analysis of external factors such as opportunities(opportunities)and threats(threats), it will be identified to determine the factors key of strength, weaknesses, opportunities and threats.The identification results are used to compile the EFE (External Factor Evaluation) matrix and the IFE (matrix Internal Factor Evaluation).After identifying the internal factors of laying hens, then an IFE matrix that contains strengths and weaknesses is made.After that, the total factor value in each variable is divided by the total value of the identified factors so that the required weight is obtained, as presented in Table 1.
The results of the IFE matrix analysis show that internal factors in the form of forces that have a very important influence on the development of laying hens farms in the city of Semarang, milling feed itself streamlines production costs with a score of 0.403 and the factors that have the least influence are the company's relationship with consumers/customers and the company's image towards financial institutions is good.Meanwhile, the internal factor in the form of weakness that is very important is the company has not maximized technology the existing with a score of 0.407.Laying hens in the city of Semarang have a limited amount of funds to provide advanced technology that can meet operational needs in developing a livestock business.Meanwhile, based on the identification of the external factors of laying hens, opportunities and threats were obtained that affect the development of laying hens in the city of Semarang.Thereafter, weighted using pairwise comparisons (paired comparison) against the threat and opportunity factors to get the weight of each of the external variables, as presented in Table 2.The results of EFE matrix analysis showed that external factors such as a very important opportunity is market demand.The percentage of purebred chicken eggs is quite high but has not been fully met with a score of 0.384.According to statistical data in 2018, public egg consumption reached 833.9 thousand tons.Even though the total egg production during the year was only 741.6 thousand tons.This means that the demand for chicken eggs has not been met.Demand for chicken eggs is expected to continue to increase because it is still below the nutritional adequacy rate of the community.
Meanwhile, the external factor in the form of a very important threat is that newcomers are easy to enter the laying hens farming business with a score of 0.427.Currently, the demand for broiler egg products is increasing.This is due to the high public awareness of the importance of consuming nutritious food, chicken eggs as one example.However, the high demand has not been fully met by chicken farmers as producers, even though the profits obtained in laying hens are quite large.This causes the emergence of new breeders who can be a threat to the company, especially if they are able to provide products with better quality and service.
Based on the results of the analysis that has been done previously, the total value weighted on the IFE matrix is 3.452, which means that farms in Semarang City have internal factors that are above the average while the total value weighted.The EFE matrix is 3.536, which means the company's response to the external factors it faces are relatively high.The total value weighted in the IFE and EFE matrices is then assigned to the IE matrix, so that the current position of the business can be known, then an alternative strategy is formulated according to the business position in the IE matrix.If each total value weighted from internal and external factors is mapped in the IE matrix, then the company's current position is in the box in quadrant I, which illustrates that livestock in Semarang City are currently in an average internal condition and business response to factors -The external factors it faces are high.The core strategy that can be applied is a growth and development strategy.The strategy that is suitable for this area is an intensive strategy (market penetration, market development, product development) or an integrative strategy (integration backward, forward, horizontal) The complete matrix and position of livestock in Semarang City can be seen in Figure 1.Based on the IE Matrix analysis, it is said that livestock in Semarang City are in quadrant I which tends to concentrate through an intensive strategy, namely market penetration.In addition to market penetration, the strategy that can be implemented is a vertical integration strategy by means of backward integration (taking over the function of suppliers).Of the four strategies produced, those that can support an intensive strategy (market penetration) are a production strategy by increasing production capacity, a human resource strategy by increasing the number of employees, and a marketing strategy by using technology to carry out promotions.
Meanwhile, what can be classified as an integrative strategy is to differentiate business by selling feed and other livestock production facilities (backward integrative strategy).In developing a business, these internal and external factors are tabulated on matrix analysis SWOT.The SWOT analysis matrix in formulating the strategy for developing the laying hens farming business can be seen in Figure 4.2.The strategies are:

1) SO
Strategy This strategy is a strategy that uses strength to take the opportunities that exist.The strategy that can be done is to increase production capacity by adding cages, because farms still have vacant land that has not been utilized.This strategy is carried out to take the existing opportunities, namely that there is still a large market demand for broiler eggs, which is quite high but has not been fully fulfilled.If this strategy is properly implemented, it is necessary to pay attention to the husbandry regarding inadequate human resources both in terms of quantity and quality of work.

2) WO
Strategy This strategy aims to overcome the company's internal weaknesses by taking advantage of external opportunities.The resulting strategy is an increase in the number of employees, in the current condition it has very few employees.This will have an impact on the company's operational activities, both production and marketing.

3) Strategy ST
The strategy aims to avoid or reduce the impact of the threat of using force there.The strategy taken is to diversify the business.
Dependence on one product will affect the company's success because considering the increasing number of competitors in this industry, with differentiation it will reduce the risk of loss and dependence on one product.Other types of products that can be cultivated are chicken feed and medicines.This may be implemented because farms in the city of Semarang already have buildings that can function as shops.

4) WT
Strategy This strategy aims to minimize weaknesses and avoid the use of technology for promotion.So far, promotion can be said not to be carried out, but promotion is considered important considering the increase in production capacity and diversification of the product.With promotions, for example by using the internet, products produced by farms in the city of Semarang will be known by customers who are outside the area.

Figure 2. SWOT Matrix
The strategy selection stage is the third stage of the strategy management process.This stage is carried out after obtaining several alternative strategies through the IE and SWOT matrix.The analytical tool used at the strategic decision stage is the QSPM or quantitative strategic planning matrix.The QSPM matrix analysis aims to determine the relative attractiveness of the various strategies that have been chosen, and to determine which strategy is considered the best to implement based on the results of the analysis in the first stage (the input stage) and the second stage (the matching).stages).
After obtaining several alternative strategies through SWOT analysis and the IE matrix, the next stage is the strategy selection stage using QSPM (Quantitative Strategic Planning Matrix).This technique objectively determines the best strategy alternative.The selection of this priority strategy is carried out by the owner of the laying hens farming business through in-depth interviews so that a priority sequence of strategies that must be applied is produced.The results obtained are analyzed and described in Table 3. Efforts to develop a business certainly cannot be separated from the issue of investment interests that must be pursued (Rakonjac et al., 2014).Seeking an investment for a business needs to conduct a business feasibility study (Knierim, 2006).This is done to see the company's opportunities in the long term, given that future conditions are filled with uncertainty.The sustainability of the livestock business is determined by the knowledge of the breeder about the aspects of business feasibility.A business is said to be feasible if it meets requirements such as market aspects, marketing aspects, technical aspects, and financial aspects (Abadi & Taridala, 2018).Determination of the main strategy with three stages and the framework as the analysis model with a matrix.The tool or tool in the form of a matrix can be used to assist strategists in identifying, evaluating, and selecting the most appropriate strategies (Guinebretière et al., 2020).The first stage (input stage), which serves to convey the basic information needed to formulate a strategy.The strategy formulation framework used in this study consists of two kinds of matrices, namely the IFE (Internal factor evaluation) matrix which is used for the internal factors of the development of laying hens related to the strengths and weaknesses that are considered important and the EFE (External factor evaluation) matrix which is used to evaluate the external factors of the development of laying hens, regarding opportunities and threats) (Yuzaria et al., 2021).

CONCLUSSION
Based on the results of internal and external analysis, it is known that the factors of strengths, weaknesses, and threats of laying hens in the city of Semarang are: (1) Strengths, consisting of the following factors: milling Feed Itself streamlines production costs; The company owns a large area of land; The quality of the eggs produced is in accordance with good standards; The company's image towards financial institutions is good and the company's relationship with consumers/customers is very good.( 2) Weaknesses consist of factors: Production has not met customer demand; The system for recording financial statements is not yet tidy; The company has not maximized the existing technology; Promotion has not been maximized and the production process has not been efficient, due to unprofessional employees.
(3) Opportunities consist of factors: Market demand for broiler eggs is quite high but has not been fully fulfilled; Public awareness of nutritional needs is increasing: Government policies that support the poultry industry are very conducive; Ease of communication and information and the livestock/poultry is a sector that has survived in a state of crisis.(4) Threats consist of factors: price fluctuations, both the price of feed and the price of the eggs themselves; It is easy for new entrants to enter the laying hens business; The ease of customers to move to other breeders is quite high and the increase in fuel prices.
The core strategy that can be applied by laying hens in the city of Semarang is the strategy Growth and Build through an intensive strategy or an integration strategy.Based on the position, livestock in the city of Semarang is in quadrant I in the IE matrix, which illustrates that the livestock business in the city of Semarang is in an average internal condition and the response to external factors is high.The priority strategies that can be implemented are increasing production capacity, increasing the number of employees, diversifying business and utilizing technology for promotion.

Table 1 .
Internal Factor Score Internal

Table 2 .
External Factor Points