PESTLE Analysis
Politics
Political factors globally have a direct and deep impact on the hospitality industry. Whether it is the changing government regimes worldwide or terrorism, the effect is always direct on the industry. Political stability is always good for the hospitality industry. There are certainly other factors including political unrest, strikes and the traveling rules and regulations defined by each state and region government advisories. Political instability can create negative publicity, causes an inevitable decrease in tourist arrivals. Since travel and tourism brings investment in any country so political instability will bring serious consequences to the fun, comfort, safety and leisure of tourists.
Economics
Indonesia's economic growth is improving or improving according to World Bank estimates that Indonesia's economic growth could reach 5.3 percent in 2018. This projection is higher than the growth forecast in the 2017 year of 4.7 percent. World Bank Chief Economist for Indonesia estimates that growth will be supported by improving export performance, in line with better commodity prices in global markets. Similarly, government investment will increase this year. Government spending is expected to grow 3.2 percent in 2018, higher than 2017 year's forecast of 2.1 percent. Similarly, capital expenditures are believed to grow 5 percent compared to 3.7 percent expected in 2017. If government spending rises, Indonesia is optimistic that household consumption will also increase. The World Bank estimates that household consumption this year and this year is estimated to grow 4.7 percent and 5.2 percent. this can make a profit for the city travel agency which is a household consumption requirement if the world bank projected household consumption this year will increase will provide an opportunity for the city travel agency to be able to compete with competitors of its class. For city shuttle agencies a competitive advantage must be maintained, it is important to compete with competitive prices against competitors. the city travel agency gets into the business that the most important thing of their income depends on the income from consumers. If the growth rate of the economy is slow and customer purchasing power is having a negative impact, that will feel the impact of this decline mainly from the purchasing power of consumers. The economic trend has contributed greatly to the growth of the city travel agency. Because the economic trends for the city travel agencies include consumer income, prices, inflation and interest rates and other factors. the city travel agents have realized these factors have played a major role to keep employees and all consumers satisfied. For example, the city shuttle agents have tried carefully to avoid taking too much debt. Because, when interest rates are high this will make a big enough impact for future city shuttle agent companies.
Technology
This is the era of technology. The people here are now very much interested in the new technologies and always expect from good companies to adapt the latest trends of technology. Likewise, Travel agency city Industry has always been found adapting the new technological trends in its domain. Be it buses, trains, airlines and other modes of transport or be it hotels and casinos, every businesses included in transport industry has the best customer care services with the updated technology. While talking about inter city transportation business, it has all latest and up to the mark technology in the vehicle and on the board. The best use of technology has made the travel more comfortable. From ticketing services to the boarding services, the entire sphere has been made customer friendly with the use of technology. So technological factors are the major ingredient in chalking out the policies of city shuttle Industry.
Legal
The Travel inter city Industry has to follow certain legal laws and regulations. These factors are something which cannot be undermined. Negating these factors and its influence could be fatal. It has been incumbent on the Travel Industry to follow and respect not only the rules and regulations set by the government but also by the other states in which the Travel inter city Industry has been working. The Travel inter city Industry must always the rules and regulations of the states which are directly or indirectly linked with the whole process of traveling. For safe and sound traveling it is important to consider all the factors and to practically take initiatives to deal with the hurdles that came in the way of the success of the organization.
Environment
Five forces
Based on data from the Central Bureau of Statistics (BPS), the current development of inter-city transportation (JABODETABEK) is increasing from year to year this figure is obtained from the level of consumer price index prices are increasing. Data from Statista 2017 level increase of the number of travel users between cities from Jakarta to Bandung continue to increase from year to year with the number of users who reach more than 10,000 users who travel from Jakarta to Bandung and vice versa. It is also supported by the level of Indonesian society who increasingly likes to travel to refreshing. this is an opportunity for the city travel agency to be able to open a business as wide as possible and provide the needs needed by consumers.
Socio-cultural
The fundamental concerns pertaining to the environment are the best use of fuel and the wastage of oil in the traveling aspect. These certain environmental polluting factors are also one of the major concerns when it comes to the environmental factors. The preservation of the environment should always be the key concern of Travel inter city Industry in order to abide by the global concerns related to the environment of the earth. In order to maintain its position in the global market, it is essential for the policy makers of the company to formulate a look ahead policy in order to compete for the Travel inter city Industry.
Threat of new entrants : Moderate
Power of Suppliers : High
This is largely due to the high cost or capital requirements generated by the required components. Branding and corporate image of the largest industry in this cause some new players will have difficulty entering the market. Because the main players in this industry are well known by many people. A newcomer will have to spend a lot of money on marketing and advertising to be competitive with similar industries. However, it is possible to be able to compete with other existing travel shuttle earlier.
In this section Suppliers may impose a price increase on their products or reduce the quality of supplied products that may reduce the overall profitability of the company (Andriotis, 2004). This proves true in the shuttle service industry as their supplier is the gasoline that makes the shuttle service run. For example Pertamina does not want to supply gasoline to one of the shuttle companies. This may happen to the shuttle service company which is a highly dependent transportation industry to Pertamina that supplies gasoline to the shuttle service companies.
Power of Buyers : High
In this case we analyze how strong the position of consumers. In the industry, in this part of the consumer has a huge power where consumers who have a sense of Price Sensitive consumers can be free to choose the industry of the shuttle company what they will use depends on the type of price and benefits that the shuttle company can offer. This is very likely to happen in the company of the shuttle given the many competitions among the shuttle companies so that the shuttle companies have to compete to get consumers
Threats of Substitutes : High
When viewed from how the entry of replacement products that can be an alternative, especially that can serve consumers with cheaper cost and better quality. Therefore, the company must make a low fixed cost in order to compete with this replacement product for the shuttle service industry is very likely to move consumers using other services to be able to enjoy the services provided by other shuttle service companies or other transportation companies that provide transportation services from one place to another place.
Rivalry Among Existing Competitors : High
Viewed from other companies in the shuttle service industry makes the existence of existing shuttle service firms can be threatened. Because other companies that already have experience and have long known to the public make the public have the perception to use the services of the shuttle service from companies that have been there since the first. In addition, there are many methods for transportation in addition to using the existing shuttle service so this makes increasing competition there. Consumers can have several options to be able to enjoy the shuttle service you want to use, can use transportation such as bus, train and nebengers online application. Similar shuttle services can be found in various locations and the cost consumers spend switching from a very low shuttle service company and this makes the competition very fierce. The low level of difference or differentiation of products makes the competition increasing.
Key Success Factor
Retaining Customer
The biggest point goes to Cititrans with total 2.45
Resources, Capabilities
Fit Test