Abstract
This research aimed to analyze the development of shrimp industry in Indonesia. Porter’s Diamond Theory was used for analysis. The Porter’s Diamond theory is one of framework for industry analysis and business strategy development. The Porter’s Diamond theory has five forces that determine the competitive intensity in an industry, namely (1) the threat of substitute products, (2) the threat of competition, (3) the threat of new entrants, (4) bargaining power of suppliers, and (5) bargaining power of consumers. The development of Indonesian shrimp industry pretty good, explained by Porter Diamond Theory analysis. Analysis of Porter Diamond Theory through four main components namely factor conditions; demand condition; related and supporting industries; and firm strategy, structure and rivalry coupled with a two-component supporting (regulatory the government and the factor of chance). Based on the result of this research show that two-component supporting (regulatory the government and the factor of chance) have positive. Related and supporting industries have negative, firm and structure strategy have negative, rivalry has positive, factor condition have positive (except science and technology resources).
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