Putri, L. A., Jahrizal, & Hamidi, W.
Analysis of The Advertising Industry’s Competition in Pekanbaru City. |
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Full Article: PDF
Scientific Object Identifier: http://s-o-i.org/1.1/TAS-10-114-47
DOI: https://dx.doi.org/10.15863/TAS.2022.10.114.47
Language: English
Citation: Putri, L. A., Jahrizal, & Hamidi, W. (2022). Analysis of The Advertising Industry’s Competition in Pekanbaru City. ISJ Theoretical & Applied Science, 10 (114), 409- 418. Soi: http://s-o-i.org/1.1/TAS-10-114-47 Doi: https://dx.doi.org/10.15863/TAS.2022.10.114.47 |
Pages: 409-418
Published: 30.10.2022
Abstract: This study aims to determine the competition in the advertising industry in Pekanbaru City. The data used are primary data and secondary data. The population and sample in this study were the advertising industry in Pekanbaru City, which amounted to 15 business units. This study uses quantitative descriptive analysis to determine the conditions of business competition in the advertising industry in Pekanbaru City. The analytical test tools used in this study are the market structure of CR4, IHH and Porter's Analysis. The results of the market structure research show that CR4 30.05% is a monopolistic market with a value approach of 0 < CR4 < 40 and a Herfindahl-Hirscman index value of 712.1 This means that competition in this industry is included in the monopolistic category with an IHH value approach of < 1,500. The results of Porter's analysis research can be seen that the competition in the advertising industry in Pekanbaru City is quite high, because the number of advertising industries is large, both licensed and unlicensed. From the supplier variable, it is quite strong coming from inside and outside the region. From the variables of new entrants, there are not too many obstacles to entering the business such as the amount of capital, the same type of business that has lasted a long time, as well as price competition and product quality. From the substitute product substitution variables that threaten the existence of advertising businesses in Pekanbaru City, namely the presence of posters, brochures and calendars with materials, sizes, designs at relatively low prices and good product quality.
Key words: industry competition, advertising, CR4, IHH, porter.
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