https://review.
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Vol.
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January Ae March 2025 DOI: https://doi.
org/10.
38035/sijse.
https://creativecommons.
org/licenses/by/4.
SWOT Analysis as an Innovation Strategy in Improving PT XYZ's Business Sustainability Bintang Afrina Putri1.
Hapzi Ali2 Bhayangkara University.
Jakarta Raya.
Jakarta.
Indonesia, bintangafrin4@gmail.
Bhayangkara University.
Jakarta Raya.
Jakarta.
Indonesia, hapzi.
ali@gmail.
Corresponding Author: Bintangafrin4@gmail.
Abstract:This study aims to create a sustainable fashion industry innovation strategy using a SWOT analysis approach to PT XYZ, a company that makes formal and casual clothing for sale domestically and abroad.
The object of this study is PT XYZ, a company that makes formal and casual clothing for sale domestically and abroad.
This company is facing challenges to maintain the sustainability of its business amidst increasingly dynamic competition in this The research method uses a qualitative descriptive approach based on literature SWOT analysis is an analysis of strengths, weaknesses, opportunities, and threats that can affect the sustainability of a company.
The results of the analysis show that PT XYZ has advantages in innovative product design and flexible production systems, but has weaknesses in terms of branding and digital distribution worldwide.
While opportunities come from environmentally friendly fashion trends and market digitalization, threats come from shifting trends, global fast fashion, and supply chain uncertainty.
The strategies made include increasing digital branding, investing in environmentally friendly materials, collaborating with local designers, and improving supply chain management.
Keywords: SWOT Analysis.
Innovation Strategy.
Business Sustainability INTRODUCTION PT XYZ is a local fashion business that makes formal and casual clothing.
The company's main market is teenagers and young adults in Indonesia and ASEAN countries.
With increasing competition in the fashion industry.
PT XYZ faces major challenges in maintaining its existence, especially in terms of product innovation, digital marketing, and meeting the sustainability demands of modern consumers.
The fashion industry is one of the most volatile and sensitive industries to changing This is due to rapid market changes, environmental laws, and consumer patterns that are increasingly concerned with morality and sustainability.
Fashion companies must respond to these changes by becoming more adaptive, creative, and responsive to market needs.
In addition, fashion companies such as PT XYZ must be able to integrate digital technology into all aspects of their business, from production, marketing, to customer service, because the digital revolution is changing consumer consumption patterns.
The ability to produce goods that are in demand by the market is not the only factor that determines the 103 | P a g e https://review.
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An effective strategy for managing resources, strengthening brand position, and responding to external changes is also important.
SWOT
analysis is one way to create a broad and flexible strategy.
The purpose of this study is to identify the strengths, weaknesses, opportunities, and threats (SWOT) of PT XYZ in the fashion industry and to create innovative strategies that will improve the competitiveness and sustainability of PT XYZ.
In addition, this study will provide relevant strategic recommendations for the development of PT XYZ's fashion business both in the short and long term.
Companies can useSWOT analysis on creating new strategies that are able to address current issues and increase the company's capacity to anticipate uncertain markets in the future.
In addition, it is expected that the designed strategies will help maintain sustainable excellence in the increasingly competitive fashion industry worldwide.
METHOD
The research method and data analysis in this study means reading and analyzing literature relevant to the research topic.
literature provides theoretical insights into research concepts that are useful for building a scientific and accountable framework for solving problems and compiling research results.
This study uses SWOT (Strengths.
Weaknesses.
Opportunities, and Threat.
analysis to create creative strategies that can improve the company's sustainability in the long term, four main strategies.
SO (Advantages-Opportunitie.
ST (Advantages-Threat.
WO (WeaknessesOpportunitie.
, and WT (Weaknesses-Threat.
, are combined to create new strategies.
RESULTS AND DISCUSSION
Results Based on the background, objectives, and methods discussed in this article, the following results were generated:
Innovation Strategy In modern business competition, innovation strategy theory emphasizes the importance of being unique, creative, and able to adapt to changes inside and outside the company.
maintain added value and sustainable competitive advantage, innovation becomes the main Therefore, innovation strategy must be adjusted to all company operations.
To maximize the impact of innovation strategy on company performance, accurate and comprehensive planning, coordination, implementation, and evaluation are required.
PT XYZ creates an innovation strategy that combines digital transformation and product development, following changes in consumer preferences and global design trends.
This strategy also adapts to the company's internal strengths, such as product quality and production capacity, and takes advantage of opportunities from the growth of e-commerce and increasing awareness of multifunctional and ergonomic design.
Previous researchers have studied this innovation strategy thoroughly.
Ulfa.
, & Ali, .
Candana.
D .
Ali.
, & Zefriyenni.
, and Wahono.
, & Ali.
PT.
XYZ Business Sustainability Innovation Strategy PT XYZ not only focuses on innovation in product manufacturing and production systems, but also places sustainability as an important part of its business strategy.
PT XYZ's business sustainability innovation strategy ensures that the business will continue to operate in the long term by balancing economic goals, social concerns, and environmental This strategy is implemented through systematic and integrative steps throughout the company's operational processes.
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PT XYZ has started to use a design approach that supports sustainability principles such as raw material efficiency, use of recycled materials, and durable and multifunctional designs.
These products are not only made to meet functional and aesthetic aspects, but also to demonstrate the company's commitment to environmental preservation.
This is in line with increasing consumer awareness of environmental issues around the world, which increases the added value of sustainability.
PT XYZ has built a digital-based supply chain management system in addition to The goal is to increase transparency in the logistics process and improve distribution This system allows businesses to respond to fluctuations in demand and supply in real time and reduce the risk of distribution disruptions caused by international trade policies or global crises.
In addition, the business has established strategic partnerships with key raw material suppliers to maintain price stability and supply continuity, which are essential for the sustainability of the company's operations.
PT XYZ realizes that business sustainability cannot be achieved without the active participation of all levels of the organization, especially in building an innovative, effective, and socially responsible work culture.
The company realizes the importance of continuous training for the workforce to align with advances in industrial technology and green management principles.
A more inclusive and educational marketing approach supports this sustainability innovation strategy.
PT XYZ began using digital marketing campaigns to inform consumers about their sustainability values and emphasize the importance of responsible consumption.
building an emotional connection between the brand and environmental values, the company hopes to increase consumer loyalty and strengthen the brand's position as a pioneer in the sustainable furniture industry.
This strategy has been studied and supported by various previous studies, as stated by Yeni.
Erwin.
, and Ali.
Maisharoh.
, and Ali.
, and Mirzai.
, and Ali.
Strengths To maintain and expand its competitiveness in the product market.
PT XYZ has a number of strategic strengths, one of which is superior product quality that consistently meets customer expectations and satisfaction.
The use of high-quality raw materials supports product quality and aesthetics.
In addition, a diverse product portfolio allows the business to reach various market segments and meet the growing needs of consumers.
The company can continue to increase its market share through a wide distribution network, both in the domestic and export PT XYZ can maintain timely delivery and expand its marketing coverage strategically with the support of efficient logistics infrastructure.
The company has gained a competitive position in the global market due to these strengths, as discussed in previous studies by Praitamai & Ali .
Raimaidhainitya & Ali .
, and Agustina & Ali .
Weaknesses PT XYZ still faces a number of internal weaknesses that must be fixed immediately, even though the company has many strengths.
One of the most important weaknesses is the low use of digital technology, which has an impact on the company's operational efficiency and competitiveness in the current era of digital transformation.
The production process still uses a manual system, which hinders productivity and increases dependence on human labor.
PT XYZ's low brand recognition in the global market prevents the company from expanding worldwide.
The absence of innovation in product design causes the company to lag behind changing consumer trends and preferences.
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Studies by Sairi & Ali .
Ernaiwati & Ali .
, and Sailsabilla & Ali .
Opportunities With the increasing demand for high-quality and innovative products worldwide.
PT XYZ has many opportunities to grow.
This is due to the ever-evolving design trends, which allow the company to innovate and create products that suit the tastes of modern consumers.
In addition, increasing public awareness of environmental issues allows the development of sustainable and environmentally friendly products.
The rapid growth of e-commerce and the advancement of digital technology allow PT XYZ to reach customers directly anywhere and This also allows PT XYZ to better optimize its digital marketing strategy.
This advancement enables companies to build stronger customer relationships and increase their market share.
In the literature.
Mulyani.
Ridwan, and Ali .
and Shobirin.
Ali .
discuss these opportunities.
Threats PT XYZ faces various external threats that can affect its business and its stability.
remain competitive, businesses must continue to innovate and maintain the quality of their products due to increasingly fierce competition from local and international industry players.
Because fluctuations in raw material prices directly impact a company's production costs and profit margins, it is a unique problem.
In addition, marketing designs and strategies must always change because consumer preferences change rapidly.
Economic globalization carries risks, such as international market uncertainty or changes in trade policies, which make longterm business management more difficult.
The studies of Yeni.
Erwin, and Ali .
Maisharoh, and Ali .
, and Mirzai.
Ali .
discuss these threats thoroughly.
These studies emphasize how important it is to be flexible and resilient to external pressures.
Based on the background and results of the SWOT analysis that has been conducted.
PT XYZ has the main advantages in terms of high product quality and design flexibility that is responsive to market trends.
However, the company still faces obstacles in the digitalization of distribution and brand recognition elements in the international market.
Technological developments, especially digitalization and e-commerce, open up great opportunities that can be utilized to improve marketing efficiency and expand market reach.
Table 1 below summarizes the results of the SWOT analysis and strategies that can be implemented by PT XYZ in improving the sustainability of its business amidst the dynamics of the ever-growing fashion industry.
Table 1 SWOT Analysis Internal / External Opportunities Threats - Eco-friendly fashion trends- Competition with global Factors Development of digital technology & AI- Growth of e-commerce & social mediaAwareness of local productsCross-sector collaboration brands- Changes in fast fashion trends- Economic crisis & low purchasing power- Dependence on third party platforms- Limited supply of raw materials- Risk of design plagiarism 106 | P a g e https://review.
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Strengths - Innovative designFlexible productionQuality local materialsAdaptive creative team Weaknesses - Low brand recognitionWeak digital distributionMinimal technological A A A A Vol.
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- Sustainable collectionsLocal designer collaborations- Ecommerce- Social media WO Strategy:
- Digital training- Platform development- AI optimization- Management ST Strategy:
- Product diversificationTechnology investmentPersonalization- Local WT Strategy:
- Production restructuringQuality control- Aggressive branding- Supplier SO Strategy (Strength - Opportuinit.
To respond to external opportunities, such as sustainable fashion trends and ecommerce growth, this approach leverages internal strengths such as product quality and creative design.
PT XYZ has the ability to develop environmentally friendly products and develop a digital distribution network.
ST (Strength Ae Threait.
Strategy:
As part of this strategy, companies use their strengths to combat industry threats such as fast fashion competition and changing raw materials.
They do this by investing in technology and strengthening their brand identity.
WO Strategy (Weaknesses Ae Opportuinitie.
The focus of the strategy is to address weaknesses such as weak digital distribution by leveraging digitalization opportunities through team training, innovation, and sales platform development.
WT (Weaknesses Ae Threait.
Strategy:
This method aims to reduce weaknesses and address threats through process reorganization, improving quality control, and diversifying the supply chain.
Discussion SWOT (Strengths.
Weaknesses.
Opportunities, and Threat.
analysis is based on theoretical research and related literature.
By using this analysis, which shows the company's strengths, weaknesses, opportunities, and threats, companies can make the right strategic decisions and improve their competitiveness.
SWOT Analysis SWOT (Strengths.
Weaknesses.
Opportunities, and Threat.
analysis is the best way to find out everything needed to create a business plan is to do a SWOT analysis, which stands for Strengths.
Weaknesses.
Opportunities, and Threats.
A SWOT analysis can also provide an overview of how a company should view its internal and external environment.
The company's internal environment consists of weaknesses and strengths, while the company's external environment consists of opportunities.
Strength (Strengt.
is a strong or dominant condition in a company.
This factor creates added value or superiority for the company.
If the company excels over other companies and can meet customer needs, their contribution can show this added value.
This is the main strength of the company in creating high quality.
Weaknessesis a situation that shows the weaknesses or shortcomings of a company.
company's situation can be considered good if the company can reduce or eliminate its Opportunitiesis a condition outside the company that can benefit the company.
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is an external situation that disrupts the smooth running of a These threats are usually detrimental to the business and can have long-term impacts, preventing the company from achieving its goals and vision.
Previous researchers have studied SWOT analysis thoroughly.
Muilyaini.
SR.
Ridwain, and Ali.
and Shobirin.
, and Ali.
Table 2 SWOT Strategy Strength Superior product Utilization of quality materials Diverse product Domestic and export distribution network Weakness Internal Factors Lack of use of digital technology 2.
Brands are less wellknown in the international market Relatively manual production process 4.
Limited product design innovation External Growth of the Strength Ae FactorsOpportunities global furniture Opportunity (SO) Evolving Strategy design trends3.
Optimizing Increasing product quality in penetrating the export market 2.
Digitalization and e- Developing products based on modern, friendly design trends Expanding sales through digital platforms and ecommerce 4.
Collaborating with designers and External Tight competition Strength Ae Threat FactorsThreats Fluctuations in raw (ST) Strategy material prices 3.
Investment in Changes in consumer production Global technology to economic risks increase efficiency 2.
Product diversification to reduce market risk 3.
Establishing strategic partnerships in the supply chain 4.
Monitoring and adjusting strategy Weakness Ae Opportunity (WO) Strategy Investment in production technology to increase Team training and development to increase innovation 3.
Increased use of digital platforms for marketing 4.
Strengthening internal management systems and Weaknesses Ae Threats (WT) Strategy Restructuring the production process to reduce dependence on manual labor.
Increasing brand awareness through aggressive marketing.
Supply chain risk Developing a strict quality control system.
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SO Strategy (Strength Ae Opportunit.
Optimizing product quality in penetrating the export market: PT XYZ can penetrate the export market to countries with high demand for premium fashion products thanks to the strength of high quality standards for fashion products.
Product development based on contemporary and environmentally friendly design trends: Utilizing resources and production capabilities to create fashion products that follow global trends and use environmentally friendly materials that are in demand in the market.
Sales expansion through digital platforms and e-commerce: Using existing distribution networks supported by digital technology to increase online market penetration, reach new customers, and increase sales volume.
Collaboration with designers and influencers: Engaging creative industry players and influencers through a visual and emotional approach to increase brand awareness and appeal to a wider fashion market.
ST Strategy (Strengths-Threat.
Strengthening product differentiation and customer service: Amidst increasingly fierce competition, demonstrate product excellence and unique customer experience to differentiate yourself from competitors.
Reduce market risk by developing product variety: Create product variety such as seasonal collections, capsules, and limited editions to make the business more flexible to address changes in customer demand and tastes.
Establish strategic collaboration in the supply chain: Work closely with key suppliers to maintain stable prices and raw material supplies, especially during times of global economic volatility.
To monitor and adjust market analysis-based strategies, companies must conduct market analysis periodically.
This allows companies to adjust their strategies according to evolving trends and challenges.
WO Strategy (Weakness Ae Opportunit.
Investing in production technology to increase efficiency: Digitalization and automation overcome the shortcomings of manual processes and increase production efficiency and quality.
Team training and development to enhance innovation: Leverage human resource advancement programs and government programs to encourage design innovation and market response capabilities.
Increasing the use of digital platforms for marketing: Addressing e-commerce market opportunities by improving digital marketing strategies to effectively reach domestic and international markets.
Strengthening internal management systems and processes: Restructuring the organizational structure and internal procedures to be more flexible and facilitate faster decision-making and better operational performance.
WT Strategy (Weakness Ae Threa.
Reorganization of production processes to reduce dependence on manual labor:
Modernization of work processes to reduce production costs and improve product quality consistency amidst the tight competition in the fashion industry.
Increasing brand awareness through aggressive marketing: Increasing brand recognition with active marketing campaigns and expanding distribution networks widely, especially in export markets.
Supply chain risk management means reducing the impact of price fluctuations and supply constraints by providing multiple sources of raw materials and working with multiple suppliers.
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January Ae March 2025 Developing a strict quality control system: ensuring that all products manufactured meet consistent high quality standards to maintain reputation and market trust.
Previous researchers used SWOT strategy in their research.
Sairi.
VN.
Ali.
Mulyani.
AP, and Ali.
Innovation Strategy based on SWOT Analysis SWOT analysis is an important tool to identify the strengths, weaknesses, and threats of PT XYZ when running a business.
The results can be used as a basis for creating the right innovation strategy for the company.
According to Hapzi Ali .
, the results of the SWOT analysis can be divided into four categories of innovation strategies:
SO Strategy (Strengths-Opportunitie.
:Using the organization's own strengths to capture external opportunities by creating new products, procedures, or business One example is innovation in production technology that increases efficiency while opening up new markets.
WO (Weakness Ae Opportunit.
Strategy: Overcoming internal weaknesses through innovation.
enables companies to take advantage of market opportunities.
One example is creating a new management system that improves internal processes to meet evolving customer needs.
ST Strategy (Strengths-Threat.
:Using existing strengths to confront or reduce external threats.
For example, developing a variety of products to avoid relying on one market segment that is vulnerable to regulatory changes.
WT Strategy (Weaknesses-Threat.
:a defense strategy that exploits a person's weaknesses with innovation so that they can survive threats.
An example is innovation in human resource development to improve employee capabilities in facing intense Innovation methods based on SWOT greatly assist businesses in increasing competitiveness, directing appropriate resources, and achieving sustainability goals (Hapzi Ali.
Pratiwi & Ali, 2.
Innovation Strategy to Improve Business Sustainability Business sustainability refers to a companyAos ability to sustain operations and growth in the long term while considering social, economic, and environmental factors.
In the case of PT XYZ, innovation strategy is essential to enhance business sustainability.
According to Hapzi Ali .
, the following are some innovation focuses that PT XYZ can use to achieve corporate sustainability:
Sustainable Product Innovation:to meet the increasingly sustainability-conscious market demand by developing more energy-efficient or environmentally friendly Examples include the use of recyclable raw materials and product designs.
Production Process Innovation:Technology can improve the efficiency of production processes by reducing energy consumption and waste and optimal use of resources.
This reduces costs and has a positive effect on the environment.
Business Model Innovation:Circular business models or sharing economy help reduce resource waste and extend product life cycles.
They also open up new opportunities for marketing and customer relations.
Social Innovation:Incorporating social elements into business strategies, such as supporting local communities and developing innovative CSR programs, will result in increased customer trust.
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This strategy will help the company maintain its competitiveness and meet stakeholder expectations and corporate social responsibility (Hapzi Ali, 2024.
Wijaya & Ali.
CONCLUSION According to this research, one of the strategic tools that companies can use to create and implement the right innovation strategy is SWOT analysis.
This analysis will help PT XYZ find strengths, weaknesses, opportunities, and threats .
It will also be the basis for determining what innovations you can do to become more competitive.
PT XYZ can strengthen its position in the market by creating relevant and competitive innovations by identifying its internal strengths, such as product excellence, human resources, and technological capabilities.
Meanwhile, internal weaknesses, such as distribution limitations or lack of product diversification, can be overcome by designing creative strategies for product development and process efficiency.
External threats such as intense competition and regulatory changes can also be anticipated through an adaptive and sustainable innovative approach.
Opportunities such as digitalization trends, consumer preferences for environmentally friendly products, and growing markets can also be utilized to produce innovations that support business growth.
Therefore.
PT XYZ greatly benefits from using an innovation strategy based on SWOT analysis because it helps them stay relevant in a competitive industry.
By considering the three main dimensions of businessAieconomic .
, social .
, and environmental .
Aithis strategy supports the principle of business sustainability.
Companies that can continue to adapt and innovate strategically will be more resilient to change and can generate long-term value for all stakeholders.
As a result.
SWOT analysis is very important as a tool to assess the condition of the company and as a basis for making decisions about directed and sustainable innovation.
XYZ can use the results of the SWOT analysis as a basis for making decisions about their innovation strategy regularly, which allows the company to survive, grow, and contribute to the formation of a healthy and sustainable business environment in the future.
REFERENCE