Indonesian Footwear Industry Analysis
ANALYSIS OF INDONESIAN FOOTWEAR INDUSTRY COMPETITIVE ADVANTAGE WITH PORTER’S DIAMOND THEORY
Emir Hanniverano Sediadi
Nicky Giftano Mugonarendro
Trisakti University Faculty of Economics International Class
Introduction
Footwear was invented thousand years ago. It was originally comes from the necessity to provide protection when moving over rough terrain in varying weather conditions. Later, more inventions come to the industry. Rubber and leather made shoes was introduced in the 19th century. Nowadays, Footwear industry manufacture shoes more than just leather and rubber. It manufactures plastic shoes, canvas, or even combinations of both as well as occupation-based footwear, such as Outdoors work footwear, Sports footwear, and Military footwear. Footwear manufacturing industry involves all kinds of footwear manufacturing, including: Athletic Footwear, Infants & Children Footwear, Men’s and Women’s Footwear (Except athletic footwear), Cleats Athletic Footwear (For Football, Baseball, etc), and House Slipper Manufacturing.
Footwear plays an important role in a person’s wardrobe, so does in the country’s economy. It is a labor-intensive industry. Most developing countries benefits in the industry as it serve relatively low cheap labor, and large availability of cheap raw material. Indonesia is with no exception one of these countries.
Indonesian Footwear is one of the fast growing industry, and one of the most contributors of the Indonesian economy. It’s been rapidly developed since the first time it was introduced in the country. It was also the first group among non-oil products that successfully reached export value exceeding USS 1 billion (Export Indonesia, 2007). Footwear industry history in Indonesia starts when Bata, a Czechoslovakian footwear manufacturer established its factory in the area of Jakarta known as Kalibata in 1940s. The industry continuously growing, and by the year in 1970, Indonesia starts to implement the mass production of
Emir Hanniverano Sediadi
Nicky Giftano Mugonarendro
Trisakti University Faculty of Economics International Class
Introduction
Footwear was invented thousand years ago. It was originally comes from the necessity to provide protection when moving over rough terrain in varying weather conditions. Later, more inventions come to the industry. Rubber and leather made shoes was introduced in the 19th century. Nowadays, Footwear industry manufacture shoes more than just leather and rubber. It manufactures plastic shoes, canvas, or even combinations of both as well as occupation-based footwear, such as Outdoors work footwear, Sports footwear, and Military footwear. Footwear manufacturing industry involves all kinds of footwear manufacturing, including: Athletic Footwear, Infants & Children Footwear, Men’s and Women’s Footwear (Except athletic footwear), Cleats Athletic Footwear (For Football, Baseball, etc), and House Slipper Manufacturing.
Footwear plays an important role in a person’s wardrobe, so does in the country’s economy. It is a labor-intensive industry. Most developing countries benefits in the industry as it serve relatively low cheap labor, and large availability of cheap raw material. Indonesia is with no exception one of these countries.
Indonesian Footwear is one of the fast growing industry, and one of the most contributors of the Indonesian economy. It’s been rapidly developed since the first time it was introduced in the country. It was also the first group among non-oil products that successfully reached export value exceeding USS 1 billion (Export Indonesia, 2007). Footwear industry history in Indonesia starts when Bata, a Czechoslovakian footwear manufacturer established its factory in the area of Jakarta known as Kalibata in 1940s. The industry continuously growing, and by the year in 1970, Indonesia starts to implement the mass production of