Jurnal Pemasaran

Jurnal Aplikasi Manajemen dan Bisnis, Vol. 10 No.
1, January 2024 Available online

Permalink/DOI: http://dx.doi.org/10.17358/jabm.10.1.162 http://journal.ipb.ac.id/index.php/jabm
THE RISE OF DIGITAL MARKETING AGENCIES:

TRANSFORMING DIGITAL BUSINESS TRENDS
Chairani Putri Pratiwi*)1, Rizka Astari Rahmatika*), Rafki Chandra Wibawa*)

Lorio Purnomo*), Hasna Larasati*), Siti Jahroh**), Fadhilla Izzaty Syaukat***)
*)
BINUS Entrepreneurship Center, Management Department, BINUS Business School Undergraduate Program,
Bina Nusantara University
Jl. Kebon Jeruk Raya No. 27 Kebon Jeruk Jakarta Barat 11530, Indonesia
**)
School of Business, IPB University
Jl. Raya Pajajaran, Bogor 16151, Indonesia
***)
Graduate School of International Food and Agriculture Studies, Tokyo University of Agriculture
1-1-1 Sakuragaoka, Setagaya-ku, Tokyo 156-8502, Japan
Abstract: In recent years, Indonesia has emerged as a powerhouse in the digital

economy, aiming to become the leading force in South East Asia. In this digital era, the
promotion of products and services has become a fundamental factor for businesses,
largely attributed to the advent of digital marketing. The primary objectives of this
study are to explore the reliance of digital marketing agencies on digital marketing and
assess the success rate of this strategy, particularly during the COVID-19 pandemic,
which has significantly increased productivity and sales. Additionally, the study aims
Article history: to evaluate the effectiveness of digital marketing strategies for business sustainability
Received and discuss future trends. To shed light on this phenomenon, this study employs
2 August 2023 qualitative methods, including interviews and observations, to collect data. Various
analysis techniques such as EFE, IFE, CPM, IE, SWOT, and QSPM are employed.
Revised Based on the findings, this research demonstrates that digital marketing strategies
27 November 2023 have proven highly effective, particularly in terms of the promotional and advertising
techniques employed. Based on the findings, SKI Digital Marketing's strategic focus
Accepted on Instagram as its primary marketing platform, coupled with a commitment to content
4 December 2023 marketing, reflects a purposeful approach to engaging a broad audience and enhancing
brand visibility. The adoption of a market penetration strategy underscores the agency's
Available online determination to thrive amid intense competition.
31 January 2024
Keywords: business strategy, digital business, digital communication, digital economy,
This is an open access digital marketing
article under the CC BY
license (https:// Abstrak: Indonesia memiliki ekonomi digital terbesar pada beberapa tahun terakhir
creativecommons.org/ dan menuju untuk menjadi yang terbesar di Asia Tenggara. Pada era digital, promosi
licenses/by/4.0/) produk dan jasa menjadi faktor fundamental penting melalui pemasaran digital. Tujuan
dari penelitian ini adalah untuk menjelaskan bagaimana agen pemasaran digital
bergantung pada pemasaran digital dan tingkat keberhasilan strategi pemasaran
ini, karena pemasaran digital telah meningkatkan produktivitas dan penjualan,
terutama selama pandemi COVID-19, untuk mengidentifikasi efektivitas strategi
pemasaran digital untuk keberlanjutan bisnis, dan untuk membahas tren masa depan.
Penelitian ini menggunakan metode kualitatif, melakukan wawancara, dan observasi
untuk mengumpulkan data. Beberapa metode analisis digunakan dalam penelitian
ini, termasuk EFE, IFE, CPM, IE, SWOT, dan QSPM. Berdasarkan studi yang telah
dilakukan strategi pemasaran digital sangat efektif dalam hal teknik promosi dan
periklanan yang diterapkan pada bisnis di era saat ini. Berdasarkan hasil studi,
fokus strategis SKI Digital Marketing pada Instagram sebagai platform pemasaran
utamanya, ditambah dengan komitmen terhadap pemasaran konten, bertujuan untuk
meluaskan pasar dan meningkatkan visibilitas merek. Penerapan strategi penetrasi
pasar diterapkan untuk berkembang di tengah persaingan yang ketat.
Kata kunci: strategi bisnis, bisnis digital, komunikasi digital, ekonomi digital,
pemasaran digital
1
Alamat Korespondensi:
Email: [email protected]
162 Copyright © 2024, ISSN: 2528-5149/EISSN: 2460-7819

P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 10 No. 1, January 2024
Accredited by Ministry of RTHE Number 32a/E/KPT/2017
INTRODUCTION Moreover, digital agencies bring specialized skills and

knowledge to the table, enabling businesses to navigate
The implementation of large-scale social restrictions the complexities of the digital world effectively. They
(PSBB) or the enforcement of community activity have a deep understanding of consumer behavior, digital
restrictions (PPKM) program necessitates individuals analytics, and online marketing channels, allowing
to reduce their activities outside their homes. Industries them to develop targeted and impactful campaigns. By
that heavily rely on crowds, such as restaurants, shopping partnering with a digital agency, businesses can tap into
centers, and wedding planners, have been significantly their expertise and experience to develop a strong digital
impacted. The COVID-19 pandemic has negatively presence and drive growth in the digital era.
affected businesses in various sectors. However, this
situation has also presented an opportunity for people As a result of unforeseen circumstances in recent years,
to adapt to technology. Many sectors, including digital marketing has emerged as an effective approach
companies, education, retail markets, and tourism, for businesses seeking to adopt new methods of marketing
have transitioned their systems to accommodate the through digital platforms. Digital marketing can be
changing circumstances (Chamboko et al. 2021). described as a marketing system that utilizes various
digital media channels. Video marketing and social media
The emergence of digital agencies has been a significant content have gained significant popularity in the realm
trend in recent years, as businesses increasingly of digital content marketing, evident from the growing
recognize the importance of digital marketing and number of businesses utilizing platforms like Instagram
online presence. These digital agencies specialize in or TikTok to quickly and directly engage customers on an
providing a wide range of digital services, including emotional level (Vicente et al. 2022; Santoso et al. 2022).
website development, social media management,
search engine optimization, content creation, and The digital marketing agency business has gained
online advertising. Their expertise lies in leveraging significant popularity among young individuals in
digital platforms and technologies to help businesses Indonesia. There is a growing inclination towards
establish a strong online presence, engage with their offering goods and services through online platforms.
target audience, and achieve their marketing goals. With the advent of the digital era, leveraging technology
has become the most effective method for sales and
In today's era, digital marketing has become marketing. The approach is rather straightforward,
indispensable, and strategies associated with this form involving the promotion of products or services to
of marketing are highly effective for organizations consumers through popular social media platforms such
and businesses. According to Ningrum et al. (2023) as Instagram, Facebook, Twitter, LinkedIn, and the
the optimizing of digital marketing could increase TikTok app (Olbrich et al. 2019; Vinerean, 2017). This
brand awareness of business. When it comes to digital promotional strategy is widely adopted by micro, small,
marketing, the key to success lies in its implementation and medium enterprises (MSMEs) (Noviaristanti et al.
and execution within a business. Social media, as an 2023). Furthermore, developing dedicated websites that
integral component of digital marketing, is particularly showcase all the products or services has also become a
accessible and straightforward to incorporate into crucial marketing and promotional tool (Vicente & Cano,
marketing strategies (Kotler et al. 2019; Mahboub, 2022).
2018).
Sinergi Kreatif Indonesia (SKI) Digital Marketing Digital
Digital agencies offer a comprehensive suite of services Marketing is a digital marketing agency that incorporates
tailored to meet the specific needs and objectives innovative concepts and provides digital marketing
of businesses in the digital era. They keep up with services along with community-focused training. Despite
the latest trends and advancements in the digital operating amidst the pandemic, this company recognizes
landscape, ensuring that their clients stay ahead of the the evolving conditions and trends in digital services
competition. From developing visually appealing and as an opportunity to enhance business revenue. In light
user-friendly websites to implementing data-driven of these circumstances, this study aims to analyze the
marketing strategies, these agencies play a crucial digital marketing strategy implemented by SKI Digital
role in maximizing the online visibility and success of Marketing, as it is one of the agencies that has thrived
businesses. during the COVID-19 pandemic.
Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 163
Digitalization involves approaching challenges in a implemented by SKI Digital Marketing and (2) to
novel way and creating innovative business models by analyze the potential strategies that can be employed to
harnessing digital technologies (Faizurrohman et al. maximize business optimization. The expected result
2021). It entails expediting the process of integrating from this study (1) It is anticipated that the analysis of
digital elements into corporate operations. Digital digital marketing strategies implemented by SKI Digital
marketing, on the other hand, utilizes data, technology Marketing will reveal a comprehensive understanding
rooted in information and communication technology of the approaches employed by the agency. Insights
(ICT), media platforms, and various tools to expand into the specific channels, tools, and tactics utilized
the scope and impact of marketing efforts. Its primary are expected to contribute to a clearer picture of the
objective is to promote products/services, stimulate agency's overall digital marketing strategy and (2) The
interest in purchases, and engage customers. The analysis of potential strategies for business optimization
widespread accessibility of the internet and mobile is expected to uncover actionable insights that can
devices has made the recent effects of digital marketing enhance SKI Digital Marketing's overall performance.
highly advantageous for businesses (Krishen et al. Anticipated results include the identification of key
2021). areas for improvement, innovative approaches to
maximize efficiency, and strategic initiatives that align
Digital marketing encompasses a range of business with the agency's objectives.
strategies that are implemented through online media
and platforms. It is recognized as a means to establish
connections with customers and effectively address METHODS
their needs. Furthermore, digital marketing serves as a
marketing strategy that drives the evolution of a digital This study employs a qualitative research method
ecosystem, ultimately influencing customer habits and utilizing descriptive analysis. The qualitative approach
behaviors (Ramon, 2020). allows for a focused examination with a limited
number of samples and a relatively short timeframe,
Digital marketing employs diverse technologies such while ensuring the accuracy of the process to gain
as artificial intelligence and the internet of things to comprehensive insights. The objective of the study is to
accomplish marketing objectives in both consumer-to- identify and develop appropriate marketing strategies
consumer and business-to-consumer contexts. Allowing for Sinergi Kreatif Indonesia (SKI) Digital Marketing
businesses the flexibility to adapt is crucial as they to effectively operate their business. To achieve this,
recognize that digital marketing and communication the study will initially conduct a Porter Five Forces
share the common objective of comprehending and Analysis within the given context.
addressing consumer needs effectively. The ultimate
goal remains to cultivate customer satisfaction, loyalty, SKI Digital Marketing was deliberately selected as the
and happiness. To achieve this, businesses must utilize focal point of this study using a snowball sampling
various digital marketing tools, tactics, and strategies technique, as it serves as a prime example of a digital
tailored to their specific target audience (Bala, 2018; marketing agency that has experienced significant
Putro, 2021). growth over the past year. By obtaining information
and testimonials from clients who have utilized the
Digital marketing is a comprehensive procedure in services of SKI Digital Marketing, it is evident that this
which a company delivers a marketing message to agency excels in delivering exceptional services within
a specific target audience through the utilization of the digital marketing industry.
the Internet and various other digital marketing tools
(Labanauskaite et al. 2020). Digital marketing can be SKI Digital Marketing was chosen as a representative
defined as the utilization of digital media, including case due to its noteworthy track record and successful
information and communication technologies, to collaborations with multinational companies. The
convey marketing messages (Haneef, 2017). primary objective of this study is to investigate the
implementation of digital marketing strategies by SKI
Based on the research problem the objectives of this Digital Marketing during the challenging circumstances
study are (1) to identify how digital marketing strategy of the Covid-19 pandemic.
164 Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017
The research methodology comprises several stages, mold each industry, offering a nuanced comprehension
including topic selection, data collection, data analysis, of its strengths and vulnerabilities. The five-force model
and drawing conclusions and recommendations. proves to be a valuable instrument for conducting
To ensure the validity and reliability of the study, comprehensive technical analysis. A closer examination
various tests have been conducted, such as credibility, of this methodology reveals its capability to furnish
transferability, dependability, and confirmability businesses with crucial insights into the distribution
(Myers, 2020) The credibility test involves expanding of revenue among the five forces within a particular
observations and utilizing triangulation techniques. industry. Furthermore, it enriches the understanding of
The transferability test allows for the application of industry dynamics and facilitates informed predictions
digital marketing strategies by creative consultants in about future developments (Sugiyono, 2018). Based
circumstances similar to SKI Digital Marketing. The on Figure 2, Sinergi Kreatif Inovasi (SKI) Digital
dependability test involves a continuous research audit Marketing confronts various conditions.
process, documenting the interview and observation
procedures from start to finish. The confirmability
test is conducted by ensuring that interviews and
observations adhere to the established study protocols. Stage 1
Input Stage: EFE, IFE,CPM Matrix
There are three phases for decision making prosesses
that will be used as research framework. Figure 1
presents a research methodology aimed at formulating Stage 2
a comprehensive approach. Matching Stage: IE, SWOT, and Grand Strategy Matrix
Porter Five Forces Analysis is the first phase to identify

Stage 1
and evaluate the five competitive forces that shape each Decision Stage: QSPM
industry, enabling a better understanding of its strengths
and weaknesses. The five-force framework serves as a
valuable tool for conducting in-depth technical analysis. Figure 1. Research methodology
By further examining this approach, it becomes evident
that it provides businesses with valuable insights into
how revenue is distributed among the five forces within
a specific industry. Low
Potential Entry of
During the input stage, decision-makers gather New Competitors
information and data relevant to the decision. In the
matching stage, decision-makers compare and evaluate
different alternatives or options. In the decision stage, High High
Low
decision-makers make the final choice. In the decision- Bargaining
Bargaining Rivalry among
making process, organizations can systematically power of power of
existing competitors
analyze their internal and external environments, suppliers buyers
identify strategic alternatives, and ultimately make
well-informed decisions that align with the objectives
and competitive position.
Potential Development
of Substitutes Product
RESULTS Medium
Porter Five Forces Analysis Figure 2. Porter five forces analysis
In this section, the results are presented, employing the

application of Porter’s Five Forces Analysis. Utilizing
this analytical framework, the study successfully
identified and assessed the five competitive forces that
Rivalry among Existing Firms The greater the buyer’s negotiating power, the more
they can demand lower prices or higher product quality,
Sinergi Kreatif Indonesia (SKI) Digital Marketing potentially impacting the profit margin or earnings of
operates in a highly competitive landscape, characterized SKI Digital Marketing.
by a significant number of businesses in the industry.
Competitors exhibit a range of styles or ideologies as Potential Entry of New Competitors
their main strengths. However, these competitors also
have their weaknesses, including the absence of a well- While the existence of new competitors within the same
defined framework. In order to effectively compete with industry as SKI Digital Marketing is acknowledged,
similar firms, SKI Digital Marketing employs various their presence does not directly affect the company.
strategies to enhance customer relationships, promote Initiating a business in the identical service sector as
and strengthen the agency’s image and branding, and SKI Digital Marketing necessitates skills that cannot
attract clients to engage with their services. Table 1 be swiftly acquired, and consumer preferences lean
show a comparison of the profiles of competitors SKI towards experienced companies. Consequently, the
Digital Marketing. Sinergi Kreatif Indonesia (SKI) entry of fresh competitors into the same field does
Digital Marketing faces direct competition from Digital not exert a direct influence on SKI Digital Marketing.
Marketing Agency X and Digital Marketing Agency Y However, if a new competitor possesses superior
in the same industry. However, interviews reveal that technology, such as advanced computers, cameras,
SKI Digital Marketing also encounters competition or applications, it may pose a challenge, requiring a
from numerous other competitors. Table 1 provides substantial capital investment. New competitors can
insights into how each agency brings innovation and potentially attract clients from the same sector as SKI
creativity to their respective services, particularly Digital Marketing. SKI Digital Marketing’s advantage
in the areas of social media for business branding lies in its accumulated brand experience, surpassing
and promotional media, as part of their competitive that of new competitors. This is attributed to the
strategies. company’s developed expertise and skills over time,
which cannot be rapidly acquired. Consequently, the
Bargaining Power of Supplier impact of new competitors on SKI Digital Marketing
remains minimal. Nevertheless, the industry’s influx
Suppliers play a vital role in the functioning of any of new competitors serves as a motivational factor for
business, and this holds true for SKI Digital Marketing. SKI Digital Marketing to consistently prioritize and
In the context of SKI Digital Marketing, investors play elevate its quality.
a pivotal role as essential suppliers. The incorporation
and potential sale of intellectual property to investors Potential Development of Substitutes Product
significantly contribute to the company’s advancement.
Leveraging activities related to intellectual property Substitute threats to SKI Digital Marketing, particularly
becomes a valuable asset for SKI Digital Marketing, in the domain of e-course authorizations, emanate
fortifying its overall strategy and competitive position. from webinars and online courses that provide similar
content. Additionally, the landscape is susceptible
Bargaining Power of Buyers to new substitute threats with ongoing technological
progress. Another substitute threat materializes when
In the digital era, businesses recognize the significance businesses cease operations, a situation accentuated
of promotional efforts as a crucial component of by the impacts of the COVID-19 pandemic. The
their overall strategy, given the intense competition. pandemic has led numerous companies to witness
Consequently, the demand for services such as digital substantial drops in revenue, even facing bankruptcy,
marketing, video production, content development, and consequently reducing the demand for services akin to
branding services has increased, as digital promotional those offered by SKI Digital Marketing. This scenario
activities have become integral to a company’s has significantly affected SKI Digital Marketing. In
marketing approach. With a multitude of companies response to this challenge, the company has adjusted
offering these services, buyers possess substantial its offerings by identifying the specific needs of
bargaining power and can easily switch between service businesses seeking knowledge enhancement through
providers, including ones like SKI Digital Marketing. SKI Digital Marketing courses. In addressing these
needs, SKI Digital Marketing has introduced public effective strategy is one where analytical skills and
workshops tailored specifically for micro, small, and intuitions are harmoniously aligned with the potential
medium enterprises (MSMEs). This strategic approach of the chosen approach.
enables businesses from the lower middle class to
access valuable knowledge and nurtures a community EFE Matrix Analysis
atmosphere where participants can exchange ideas and
support one another. By concentrating on community- The EFE matrix is used to measure external factors
based activities, SKI Digital Marketing aims to amplify of SKI Digital Marketing. Total weighted values on
promotional initiatives and provide networking the matrix this is the result of the total sum of the
opportunities for its clients. multiplication of weights and ratings of each external
strategic factors of SKI Digital Marketing.
Business Strategy Analysis
IFE Matrix Analysis
The input stage generated by the EFE Matrix, IFE
Matrix, and Competitive Profile Matrix (CPM) is used The IFE matrix is used to measure influence’s internal
in the next strategy development step. The process factors of SKI Digital Marketing. Total weighted values
of developing a strategy will be far more effective if on the matrix this is the result of the total sum of the
the components chosen are relevant and selective to multiplication of weights and ratings of each internal
internal and external factors. The matching phase is strategic factors of SKI Digital Marketing.
characterized by the alignment of an organization
with both internal and external factors. Matching Internal-External Matrix Analysis (IE)
techniques, including the SWOT Matrix, SPACE
Matrix, IE Matrix, and Grand Strategy Matrix, Based on IFE and EFE matrix analysis, internal factors
leverage information obtained during the input stage scored for SKI Digital Marketing was 2.85 and external
to align external opportunities and threats with internal factors scored was 2.7. This score showed that the
strengths and weaknesses. The decision phase entails internal and external factors are in an average position.
a combination of analytical examination and intuitive Which means that the internal-external matrix (IE) is in
judgment, forming a framework for crucial decisions quadrant V or is in a hold and maintain state (Figure 3).
regarding the strategy to be executed. The most
Table 1. Competitors analysis

Description SKI Digital Marketing Digital Marketing Agency X Digital Marketing Agency Y
Types of Services Webinar Content Marketing Content creative
E-Course Digital Ads Digital Ads
Content Creative Digital Branding SEO Opt
Web Development Web Development Web Development
Consultantion Multimedia Content UI/UX
Digital Branding Consultantion
Workshop Workshop
Location Bogor, West Java Bandung, West Java Jakarta
Social Media Instagram , Website, Instagram , Website, Twitter, Instagram , Website, Youtube,
Youtube, Facebook, Tik Tok Facebook Facebook, LinkedIn
Promotion Instagram , Website, Instagram , Website, Twitter, Instagram , Website, Youtube,
Youtube, Facebook, Tik Tok Facebook Facebook, LinkedIn
SWOT Matrix Analysis promoting innovation by integrating creative teams

and conducting research in business development and
According to the analysis in the SWOT Matrix (Table marketing would be beneficial.
2), recommended strategies leveraging strengths and
opportunities include (1) forming partnerships with TOTAL IFE
brands and companies for product launches and (2)
Strong Medium Weak
enhancing customer service skills to elevate overall
TOTAL EFE 3.0 - 4.0 2.0 - 2.99 1.0 -1.99
service quality. Strategies derived from addressing
Strong 3.0 - 4.0 I II III
weaknesses and capitalizing on opportunities
Medium 2.0 - 2.99 IV V VI
involve extending business reach through social
Weak 1.0 -1.99 VII VIII IX
media networking to acquire fresh connections and
understand customer needs. Additionally, optimizing Figure 3. IE Matrix
technology for efficient workflow management and
Table 2. IFE Matrix Analysis

Strength Weakness
1. Establish a clearly outlined organizational 1. Restricted networking capabilities
framework. 2. Insufficient funds for technological
2. Foster an adaptable work atmosphere. investments
3. Cultivate a workforce characterized by creativity 3. Service type with limitations
and innovation.
Opportunity Strategy SO (O1, O2, S3,) Strategy WO (W1, W3, O1, O2)
1. The digital marketing 1. Conduct product launches through collaborations 1. Broaden your business reach via
sector experiences with brands or companies. Examples networking, acquiring business
growth due to include partnering with influencers, culinary connections on social media. Apart
the impact of the establishments, and fashion entities. This from gaining fresh perspectives
COVID-19 pandemic. approach aims to establish connections, on the business, this enables
2. Ongoing advancements merging companies to broaden reach, attract understanding the desires and
in technology and fresh audiences, and explore new markets and requirements of the target clientele.
expertise contribute to innovations. 2. Develop technologies for
the evolution of digital 2. Elevate service excellence by refining customer streamlining work processes through
content marketing service skills. Strengthening connections with effective task management. Utilize
production. clients and enhancing service strategies can various software and programs, for
3. Introduce a novel contribute to an improvement in customer loyalty. instance.
product or service. 3. Integrate creative teams, research
(business development), or
marketing to foster innovation and
generate ideas, thereby enhancing
the variety of services and products.
Threat Strategy ST (S3, T1) Strategy WT (S3, T1)
1. Rival entities in 1. Given the considerable competition, SKI Digital 1. Enhance promotional efforts
comparable industries Marketing has the opportunity to enhance its to extend outreach to a broader
2. Inadequate employees' skills through training initiatives. customer base or increase market
comprehension of Additionally, it can engage in benchmarking share.
consumer product activities to fortify the brand, assess and refine 2. Maximize resource utilization
information service offerings, and enhance the overall in identifying potential customer
3. Deteriorating business performance of SKI Digital Marketing or its segments, allowing SKI Digital
dynamics in the production processes. Marketing to accurately discern
corporate realm 2. SKI Digital Marketing has the option to organize opportunities and comprehend the
or participate in various marketing events, such needs of potential target clients.
as exhibitions, partnerships, and workshops. For
instance, SKI Digital Marketing could collaborate
with educational institutions, participating as
organizers and speakers in events like training
sessions for university faculty. This participation
not only contributes to heightened brand visibility
but also facilitates the expansion of the company's
network.
Facing intense competition, SKI Digital Marketing can QSPM Matrix Analysis
strengthen its workforce through training initiatives
and benchmarking, aiming to enhance the brand, Once the alternative strategies have been derived
refine services, and overall performance. Moreover, from the outcomes of the Grand Strategy Matrix, the
the company can increase visibility and network subsequent step involves utilizing the Quantitative
presence by actively participating in diverse marketing Strategic Planning Matrix (QSPM) analysis to
events like exhibitions and partnerships, collaborating aid companies in selecting the most advantageous
with educational institutions for training sessions and alternative strategies. This analysis serves the purpose
speaking engagements. To address weaknesses and of evaluating and comparing the identified strategic
counter threats, SKI Digital Marketing should enhance alternatives, prior to making final strategy decisions.
promotional strategies for broader customer outreach
and increased market share. Additionally, optimizing In the case of this study, the alternative strategies
resource allocation is crucial for accurately identifying derived from the Grand Strategy Matrix were market
potential customer segments and better comprehending penetration strategies and product development
their needs strategies. The QSPM analysis would further assess
these alternatives in a quantitative manner, considering
Grand Strategy Matrix Analysis various factors and their respective weights. By
assigning weights to key internal and external factors,
Based on Grand Strategy Matrix, SKI Digital Marketing the analysis determines the attractiveness and viability
is in Quadran 1 because SKI Digital Marketing has a of each strategic alternative.
strong competitive position along with a rapid market
growth rate (Figure 4). In this case, SKI Digital The QSPM analysis is beneficial as it provides a
Marketing is in a strategic position because it is in a structured and objective approach to decision-making.
market that has strong competition and fast movement. It assists decision-makers in prioritizing strategic
Since SKI Digital Marketing is in quadran 1 position, alternatives and selecting the best course of action. By
for the company in that position continue to concentrate considering the inputs from both the Grand Strategy
on the current market, namely market penetration Matrix and the QSPM analysis, companies can gain
strategy and product development is the right strategy. valuable insights into which alternative strategies are
most likely to lead to success.
Ultimately, this integrated approach, incorporating the

Grand Strategy Matrix and the QSPM analysis, aids
companies in making informed decisions regarding
their strategic direction. It enables them to choose
the most promising strategies that align with their
organizational goals, competitive position, and external
market conditions.In this QSPM analysis, compare two
alternative strategies that can be described in Table 3.
Based on interviews with the owner of SKI Digital

Marketing, the QSPM analysis revealed a score of 6.45
for the market penetration strategy, surpassing the total
score of 5.9 for the product development strategy. This
suggests a clear preference on the part of the founder
Figure 4. Grand strategy matrix
of SKI Digital Marketing for the market penetration
strategy over the product development approach.
Table 3. QSPM Analysis

Alternative Strategies Market Penetration Product Development
Attractiveness Total Attractive Attractiveness Total Attractive
Strengths Weights
Score (AS) Score (TAS) Score (AS) Score (TAS)
Establish a clearly outlined organizational 0.2 3 0.6 3 0.6
framework
Foster an adaptable work atmosphere 0.2 3 0.6 2 0.4
Cultivate a workforce characterized by 0.3 4 1.2 4 1.2
creativity and innovation.
Weakness
Restricted networking capabilities 0.05 3 0.15 3 0.15
Insufficient funds for technological 0.15 2 0.3 3 0.45
investments
Service type with limitations 0.1 3 0.3 2 0.2
Total IFE 1 3.15 3
Opportunities
Pandemic boosts digital marketing 0.2 3 0.6 3 0.6
business
Advancements in technology and 0.2 3 0.6 4 0.8
expertise
Introduce a novel product or service 0.2 3 0.6 2 0.4
Threats
Competitors 0.1 3 0.3 2 0.2
Declining business 0.1 4 0.4 3 0.3
Consumer product knowledge 0.2 4 0.8 3 0.6
Total EFE 1 6.45 5.9
The QSPM analysis underscores the appropriateness of vulnerabilities that may present hurdles. One notable
the selected market penetration strategy for SKI Digital weakness is the imperative to modernize its technology.
Marketing. This alignment is corroborated by insights Given the evolving technological landscape and rising
gained from interviews with the owner, indicating a demand for digital services in the business domain,
predominant emphasis on market penetration within it becomes imperative for SKI Digital Marketing to
the company. In response to the rigorous competition update its technological infrastructure to maintain
in the market, SKI Digital Marketing endeavors competitiveness.
to sustain or augment its market share and elevate
its competitiveness. This objective can be realized In conclusion, the QSPM analysis, coupled with insights
through the implementation of competitive pricing gathered from interviews with the owner, affirms the
strategies, robust advertising initiatives, and effective market penetration strategy as the favored option for
sales promotions. Therefore, the adoption of the market SKI Digital Marketing. To effectively compete in the
penetration strategy emerges as the optimal decision market and capitalize on unexplored opportunities
for SKI Digital Marketing to broaden its presence into for business growth, SKI Digital Marketing can
previously unexplored market segments. strategically address its weaknesses, specifically by
modernizing its technological infrastructure.
Furthermore, SKI Digital Marketing employs
paid promotional campaigns on social media and Managerial Implications
collaborates with influencer marketing agencies to
foster market growth. There is an opportunity for the This study underscores the substantial role of digital
company to augment its market presence by reaching marketing in propelling business growth and ensuring
out to larger enterprises that have yet to embrace digital competitiveness in the contemporary digital landscape.
marketing, providing them with promotional services. The effective implementation of digital marketing
Nonetheless, SKI Digital Marketing confronts specific strategies proves instrumental in expanding the reach
of businesses, enhancing brand visibility, elevating To remain competitive, SKI Digital Marketing must
brand awareness, and fostering customer engagement. keep up with the evolving technology landscape and
Through the adept utilization of diverse digital upgrade its service offerings accordingly. In terms of
platforms and tools, businesses can harness data-driven social media marketing, SKI Digital Marketing should
insights to refine their marketing endeavors and make not solely focus on Instagram but should also actively
well-informed decisions. It is imperative for managerial engage with other popular social media platforms
personnel to remain abreast of the latest trends and like YouTube, Twitter, and LinkedIn. By diversifying
innovations in digital marketing while concurrently its presence across multiple platforms, SKI Digital
investing in cultivating digital capabilities within their Marketing can reach a wider audience and expand its
organizations. Additionally, fostering a culture that marketing strategy. Additionally, running sponsored
prioritizes innovation and adaptability emerges as a advertisements on various social media platforms, in
crucial factor for businesses to sustain their competitive addition to Instagram, can further enhance the agency’s
advantage amid the ever-evolving digital terrain. visibility and attract potential clients. Furthermore, in
times of high customer demand, SKI Digital Marketing
can consider increasing its workforce by outsourcing
CONCLUSIONS AND RECOMMENDATIONS certain tasks. This approach ensures that the division
of tasks aligns with the capacity of both clients and
Conclusions employees, avoiding unnecessary duplication of job
responsibilities and enabling more efficient workflow
SKI Digital Marketing implements digital marketing processes.
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Jurnal Aplikasi Manajemen dan Bisnis, Vol. 10 No.

1, January 2024 Available online

THE RISE OF DIGITAL MARKETING AGENCIES:

Chairani Putri Pratiwi)1, Rizka Astari Rahmatika), Rafki Chandra Wibawa*)

Abstract: In recent years, Indonesia has emerged as a powerhouse in the digital

162 Copyright © 2024, ISSN: 2528-5149/EISSN: 2460-7819

INTRODUCTION Moreover, digital agencies bring specialized skills and

Porter Five Forces Analysis is the first phase to identify

Porter Five Forces Analysis Figure 2. Porter five forces analysis

In this section, the results are presented, employing the

Table 1. Competitors analysis

SWOT Matrix Analysis promoting innovation by integrating creative teams

Table 2. IFE Matrix Analysis

Ultimately, this integrated approach, incorporating the

Based on interviews with the owner of SKI Digital

Table 3. QSPM Analysis

number 11135, June. https://doi.org/10.1504/IJIMA.2019.09789

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