Analysis of the Competition Structure of Scrap Iron Buying and Selling Businesses (A Case Study in Kuin Cerucuk, Banjarmasin)

Abstract

This research project aims to analyze and identify the competitive structure that influences competitive advantage in the scrap metal sales market and formulates key success factors, or KSFs. This study seeks to explain the causal relationship between one variable and another, which is known as explanatory (causality) research (Sekaran & Bougie, 2017). Primary data was gathered through questionnaire instruments and in-person interviews with business owners, managers, employees, and customers who bought or sold scrap metal. Secondary data was gathered from publications, journals, the internet, libraries, and associated organizations like the Ministry of Industry and Trade and Indonesian Central Bureau of Statistics. Through the use of observation, interview, and literature study methodologies, data gathering procedures were obtained. Competitive industry analysis with models from Five Porces Porter, competitive advantage, and descriptive analysis with company profile analysis are the analysis methodologies employed in this study. The findings show that: substitute products in the market lessen the threat of replacement products for scrap metal; the level of rivalry among competitors in the scrap metal buying and selling industry is strong; the threat of new entrants into the used buying and selling industry is weak; suppliers have strong bargaining power; and buyers have strong bargaining positions. Key success factors are economies of scale, marketing systems and capacities, financial availability, raw material and technological access.