Unlocking the Competitive Advantage: An Internal and External Analyses of PTIDM as a Small Enterprise in Indonesia

Abstract

This study analyzes the internal and external factors affecting a small enterprise in Indonesia that distributes information technology (IT) products and services. Utilizing qualitative research methods, the authors collected primary data through interviews with the owners and employees of the company and secondary data through the library and online sources. The internal analysis found that the company's resources can be categorized as intangible and tangible, including skills and knowledge of IT, high-quality products, free consultation services, a loyal customer base, financial resources, and a dedicated physical office. The external analysis applied Porter's Five Forces framework and revealed high threats of new entrants, substitutes, and buyers' bargaining power, as well as a high rivalry among competitors. Recommendations to improve the company's competitiveness and profitability include focusing on intangible resources, diversifying the supplier base, pursuing growth opportunities, and seeking external funding. This study provides valuable insights for small enterprises operating in the highly competitive IT industry in Indonesia.