Key findings:

The research found that the koi fish business at UD. Sejahtera Koi Ambassadors is feasible and has great potential, with positive financial indicators (NPV, IRR, Net B/C, and PP). The development strategy for UD. Prosperous Koi Ambassador focuses on market penetration through increased marketing efforts and maintaining customer loyalty.

What is known and what is new?

Existing knowledge recognizes the feasibility of the koi fish business and the importance of financial analysis for investment decisions. This study adds new insights by specifically analyzing the development strategy of UD. Prosperous Koi Ambassador in the ornamental fish business. It highlights the significance of market penetration strategies and customer loyalty in the growth of the koi fish business, providing practical implications for similar ventures.

What is the implication, and what should change now?

The study suggests several implications for businesses in the ornamental fish industry. Firstly, it highlights the importance of conducting thorough financial analysis, including NPV, IRR, Net B/C, and PP, to assess the feasibility of investment projects. Secondly, the emphasis on market penetration and customer loyalty strategies underscores the need for businesses to prioritize marketing efforts and customer relationships. Additionally, the study suggests that businesses should continuously review and adjust their strategies based on market dynamics to ensure sustainable growth and competitiveness.

Indonesia has the opportunity to seize the share of the world ornamental fish market. According to the Director General of Aquaculture Fisheries (2020), the achievement of Indonesia's ornamental fish export value has the opportunity to continue to be boosted. The economic contribution of ornamental fish to the export value of fishery products reaches 0.66%. The Ministry of Maritime Affairs and Fisheries will push a strategy especially strengthening upstream, namely by continuing to boost the production of ornamental fish with high economic value. There are two advantages, the first is the potential for development and the large variety of commodities with high economic value. More than 650 types of ornamental fish (fresh and marine) exist in our waters. In 2012 the production of ornamental fish reached 938.47 million heads and in 2018 it rose to 1.19 billion heads. From 2012 to 2018, national ornamental fish production grew by an average of 5.05% per year. According to the Ministry of Maritime Affairs and Fisheries (2019), the 2014-2017 period for ornamental fish experienced a significant increase. The volume of ornamental fish trafficked between provinces in Indonesia has experienced an average growth of 27.51% per year. The growth of the five main provinces of pensupplyThe national freshwater ornamental fish is East Java 53.65%, East Java Province has a higher potential for both freshwater and marine ornamental fish compared to other provinces.

According to the Central Statistics Agency, the performance of the ornamental fish trade in the period 2012 to semester 1 of 2019 continued to increase. In 2012 the export value of ornamental fish reached US$ 21.01 million, while in 2018 it reached US$ 32.23 million. Ornamental fish farming is one of the most potential agribusiness ventures in Indonesia, which can be seen from the unlimited land used for ornamental fish cultivation. Commodity of freshwater ornamental fish is one of the leading commodities that are in great demand by the public. One of the leading commodities that is still in high demand is koi fish (Cyprinus carpio) cultivation. According to the Ornamental Fish Cultivation Research Center (2019), East Java is one of the provinces that contribute foreign exchange for ornamental fish exports in Indonesia. One of the ornamental fish that until now has been relatively stable, both in price, quantity, and enthusiasts is koi fish. Koi fish are in great demand because they have various colors, have various types and can reach large sizes. Besides that, the beauty of koi can be enjoyed in the open, in a pond in the house, outdoor pool or aquarium.

According to the Director General of Aquaculture, Ministry of Maritime Affairs and Fisheries (KPP, 2021) [1] hopes that the koi ornamental fish cultivation area in Blitar Regency, East Java Province can be used as an example for the development of ornamental fish cultivation, especially koi fish which prioritizes the quality of koi fish. The aquaculture minapolitan area in Blitar has become an industrial area. The upstream sector of this region has been integrated with the downstream sector with significant economic growth. This situation is supported by the Ministry of Maritime Affairs and Fisheries (KKP) through the Directorate General of Aquaculture (DJBP) will continue to strengthen supporting infrastructure such as production roads, waterways and electricity networks to make Blitar a complete fishing industrial area. Blitar Regency is one of the koi fish centers in Indonesia.

Koi fish cultivation in Blitar has been started since 1983 and is progressing and has become a very promising new business area for fish cultivators and investors. More than 700 farmers in Blitar Regency cultivate koi fish with an area of 20.75 hectares and are spread over several districts. Blitar is well known by traders and enthusiasts as a center for koi fish cultivation and already has a fairly wide market, even for the areas of Jakarta, Bandung, Bogor, Surabaya, Semarang and Bali. The increasing number of cultivators in Blitar Regency from year to year means that one day cultivators will face the problem of distributing the results of their cultivation business.

UD. Duta Koi Sejahtera, located in Modangan Village, Nglegok District, Blitar Regency, is a koi ornamental fish business. Its location which is located in Blitar which is a center for koi fish provides advantages and opportunities in developing the business of the freshwater aquaculture sector. Every company is required to be able to compete in business, in general companies engaged in production, sales, education, services and other fields do not apart from management problems, including in the koi ornamental fish business in Blitar Regency, many businesses only carry out buying and selling transactions without implementing good management systems and governance as a feasibility analysis of the business they have. One of these problems occurred at UD.

One way to solve the problem of koi fish business owners in knowing the position of the company they have is to do a business analysis to see the company's feasibility and development strategy in maintaining the continuity of the business.

The research was conducted at UD. Prosperous Koi Ambassador in Modangan, Kec. Nglegok Blitar Regency, East Java 64171. The reason the researchers chose UD. Duta Koi Sejahtera is located in Blitar Regency which is a koi fish center in East Java. The selection of this location is based on location criteria, namely the activity of buying and selling fish continuously, operating actively, being selective in selecting commodities, strategic, superior and prospective. The method used is descriptive qualitative analysis. Business feasibility analysis uses financial aspects which consist of several investment criteria, namely NPV, IRR, Net B/C, and PP.

1. NPV (Net Present Value)

Information:

t = period of time of a business

Bt = gross social benefit received in year t Ct = gross social cost in year t

n = economic life of the business i = prevailing interest rate

Decision Making Criteria: NPV > 0, then the business is feasible and profitable.

1. IRR (Internal Rate of Return)

Information:

= level                             discount ratewhich produces NPV1

=                       discount rate that produces NPV2

= NPV which is positive

= NPV which is negative

Decision Making Criteria: IRR > Bank Interest, then the business is feasible to continue.

1. 
   NetB/C

   

Information:

B/C=                                                Benefit-Cost Ratio Bt = gross social benefit received in year t Ct = gross social cost in year t

i = prevailing interest rate t = business period

Decision Making Criteria:Net B/C > 1, then the business is feasible and profitable.

1. PP (Payback Period)

PP = 1/Ab

Information:

I = Initial Capital used

Ab = Net benefits earned each year

Decision Making Criteria: The smaller the PP value, the faster the time needed to return the capital that has been used and the more feasible the business is to do.

For the analysis of development strategies to make strategy formulation David, Fred R (2015) important strategy formulation techniques can be integrated into a three-stage decision-making framework, namely:

Source: David, Fred R (2015) [2]

Stage 1 summarizes the basic input information needed to formulate a strategy, stage 2 focuses on generating viable alternative strategies by aligning key external and internal factors and stage 3 involves a single technique, the Quantitative Strategic Planning Matrix (QSPM). A QSPM uses the input information from Stage 1 to objectively evaluate the viability of the alternative strategies identified in Phase 2. A QSPM reveals the relative attractiveness of the alternative strategies and thus provides an objective basis for choosing a specific strategy.

Thinking Framework: This research was conducted to find out whether the company is feasible to run through a financial feasibility analysis and formulate a development strategy at UD. Prosperous Koi Ambassador.

Financial Aspects in Business Feasibility Studies according to Kasmir and Jakfar (2016) [3]: Measuring tools to determine the feasibility of a business based on investment criteria can be done through the Payback Period, Net Present Value, Internal Rate of return, NPV, IRR, and Net B/C approaches.

Need for Funds and Sources of Funds

The amount of funds needed to set up a koi fish business is Rp. 5,014,631,000. These costs are used for investment capital and working capital. At Duta Koi, all of them come from their own capital and from development obtained by the owner, and until now the owner has not made a loan either to the bank or to a financial institution.

Investment Capital

Investment capital is a component of costs incurred for the purchase of koi fish rearing equipment, purchase of land and buildings for koi fish business activities, purchase of vehicles or means of transportation and office inventory.

Table 1 Investment/Fixed Costs

Working capital

Working capital is the capital used to finance the operations of Duta Koi during the company's activities. Working capital consists of fixed costs (fixed costs) listed in Table 14 above and variable costs. Fixed costs are costs that are not affected by the ups and downs of the resulting production. The company's fixed costs are incurred every month to carry out production, consisting of leadership salaries, employee salaries, maintenance costs, and some office inventory needs. Variable costs are costs used for the operational process of the koi fish business.

Operational Costs / Variable Costs

Operational costs are all costs incurred in daily activities in the koi fish business operations. Operational costs can be seen in the following table: Table 2

Table 2 Operational Costs

Company Acceptance

Company revenue is obtained from the sale of koi fish from small to large sizes. Sales capacity per month is 7891 heads, with a total revenue of IDR 524,581,869 Income tax is calculated at 1% of sales turnover.

Table 3 income statement

Source: Processed data (2022)

Cash Flow

Assessment of investment feasibility is based on cash flow and not on profits. This is due to generate additional profits, companies must have cash to reinvest. Cash flow at UD. Koi ambassadors can be seen in the following table: Table 4

Table 4 Flow of Cash Flow

4.4.7 Eligibility Criteria in Financial Aspect

The financial aspect eligibility criteria used in this study include four criteria. These criteria are Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Payback period (PP). Calculation of the financial feasibility of UD. This Koi Ambassador is obtained from data on the results of reducing cash flow benefits by reducing costs using 100% own capital. The interest rate used is 9%. Tax is calculated at 1% of sales turnover. Criteriainvestment valuation used to determine business feasibility:

1. Net Present Value

NetPresent Value (NPV), namely the difference between benefits (revenues) and costs (expenses) that have been presented in present value. This criterion says that the project will be selected if the NPV > 0. And the NPV calculation results for Duta Koi are 1,827,733,744, the NPV value > 0 is positive, which means that the koi fish business is feasible to run.

Table 5 Calculation of NPV (Net Benefit Value)

1. IRR

Internal Rate of Return (IRR) is the interest rate that will be the sum of the present value of what is expected and will be received from the sum of the present value of capital expenditures. This study shows that the investment made is feasible because the IRR is 166 %> 1. Table 6

IRR =

Table 6 IRR Calculation Results

1. Net Benefit Cost Ratio(Net B/C)

Net B/C is a ratio between the positive present value (as the numerator) and the negative present value (as the denominator). Based on the results of the calculation of the B/C Ratio value for koi fish, it is 890,389,431 > 1, meaning it is feasible to run.

Table 7 Calculation Results of Net B/C

Source: Processed data (2022)

1. PP (Payback Period)

PP (Payback Period) is a period required to recoup investment expenses using net cash flow (net cash flow). The time investment needed to return the capital that has been used is feasible for the business to do. The time needed to pay back is 1 year. Shows in the Table 8

Table 8 PP Calculation Results (Payback period)

Source: Processed data (2022)

Matching Stage (The Matching Stage)

The matching stage is the second stage in strategy formulation and functions to combine the strengths and weaknesses found in UD. Prosperous Koi Ambassador with opportunities and threats from the external environment. At the matching stage (The Matching Stage) it is carried out which strategy is best used by the company following the formulation of the strategy at UD. Koi Ambassador.

1. IFE Matrix AnalysisKoi Ambassador

The IFE Matrix was prepared after identifying internal factors which included strengths and weaknessesKoi

Ambassadors in carrying out their business activities. Identification of internal key factors is obtained fromresults of interviews by informantsas well as from internal company data. After the internal key factors are obtained, then the weighting and rating of these factors is carried out. Weighting is carried out using the paired comparison method, namely weighting by comparing each key factor to determine the level of importance of these factors for business. While the rating is done to find out whether these factors are big or small strengths and big or small weaknesses. The results of the IFE matrix analysis on Duta Koi can be seen in the following Table 9.

Table 9 IFE Matrix (Internal Factor Evaluation) UD. Koi Ambassador

Source: Processed data, 2022

The score obtained from the IFE matrix shows the ability of a business to take advantage of its strengths to overcome existing weaknesses. The weighting value used in the IFE matrix is the average weight value of each internal factor of the selected respondents, namely the owner/owner, fish procurement department, supervisor, admin finance, maintenance/quarantine division, sales/marketing and other departments as support. The weighting is carried out by the same respondent and is the average rating value of each internal factor of the respondents. Based on the calculation results in the table above, it is known that the highest and most influential value is having abundant stock and online marketing which has a weight value of 4.00 strategic factors which are the biggest and most influential strengths for Duta Koi.

1. EFE Matrix AnalysisKoi Ambassador

The preparation of the EFE matrix is almost the same as the steps for preparing the IFE matrix. The difference is in the strategic factors included in the EFE matrix, namely the key factors of opportunities and threats that affect the Koi fish business conducted by Duta Koi. Following are the results of the IFE matrix analysis on Duta Koi which can be seen in the following Table 10.

Table 10 EFE (External Factor Evaluation) Matrix UD. Koi Ambassador

Source: Processed data, 2022

Based on the results of the calculation of the EFE matrix which can be seen above, it is known that the main or biggest opportunity that can be utilized by Ambassador Koi is the high demand for koi fish and the development of increasingly sophisticated information and communication technology with a weight value of 4.00. This opportunity can be beneficial for the progress and success of Duta Koi's business because with this the market share for koi fish will be easier to obtain. However, with the high demand for koi fish, it can also bring up newcomers in the koi fish business. So for Duta Koi to be able to win market share in the koi fish business from competitors, it must take advantage of this opportunity by increasing the quantity and quality of koi fish produced by maintaining consumer trust and loyalty to Duta Koi.

1. Competitive Profile Matrix(Matrix CPM)

Table 11 CPM Matrix

Source: Processed data (2022)

From the results of the CPM Matrix questionnaire, it can be seen that the company's competitive position compared to competitors. Based on the CPM Matrix, it appears that the competitive position is superior to its competitors with a score of 2.8.

Matching Stage (The Matching Stage)

The matching stage is the second stage in strategy formulation and functions to combine the strengths and weaknesses found in UD. Prosperous Koi Ambassador with opportunities and threats from the external environment. At the matching stage (The Matching Stage) it is carried out which strategy is best used by the company following the formulation of the strategy at UD. Koi Ambassador.

1) SWOT Matrix Analysis of Koi Ambassadors

SWOT analysis is the matching stage to produce alternative strategies that are suitable for the company by looking at the strengths, weaknesses, opportunities and threats that have been previously determined by using the IFE Matrix and EFE Matrix. The resulting strategy is a matching or combination of strengths with opportunities (SO), weaknesses with opportunities (WO), strengths with threats (ST) and weaknesses with threats (WT).

The SWOT matrix is obtained by mapping the strengths, weaknesses, opportunities and threats factors. These factors were obtained from the results of internal and external environmental analysis. Table 12 Several alternative strategies obtained from the SWOT analysis can be considered by businesses in developing strategies. It is important to include the notation “S1, O2” after each strategy in the SWOT matrix. The result of the swot matrix is to communicate by providing information about the type and amount of fish available as well as good relations and maintaining loyalty to the consumers they have.

Table 12. SWOT Matrix Analysis

Table 13SPACE Matrix Analysis

X-axis =Average CA score + Average IS score

= 1

Y axis = Average FS score + Average ES score

= 1

Vector in the aggressive quadrant (upper right quadrant) of the SPACE Matrix, the organization is in a good position to use its internal strengths to (1) take advantage of external opportunities, (2) overcome internal weaknesses, and

(3) avoid external threats.

1. Koi Ambassador BCG Matrix Analysis

Table 14 Quadrant Results on the BCG Matrix

Source: Processed data (2022)

The results show that Ambassador Koi's position is in the Star position. In this position the company has a relatively strong position in the market and generates high sales volume but also requires significant investment. The company's strategy for the star position is backward, forward and horizontal integration as well as market penetration, market development and product development).

The IE matrix for Ambassador Koi is shown above; the figure shows that the position of Ambassador Koi is in quadrant I, namely having high internal and external capabilities. This position identifies a very profitable position the company has opportunities and strengths. The strategy that must be taken in this position is to support an aggressive policy or growth oriented strategy by taking advantage of existing opportunities and the company's internal strengths.

1. Quantitative Strategic Planning Matrix (QSPM) Analysis

Table17QSPM Matrix Analysis

The alternative strategies that will be selected for analysis with QSPM are the results of the SWOT analysis of the strategy of "communicating and maintaining good relations and maintaining loyalty to consumers owned and the results of the BGC analysis of the Backward Integration strategy, Horizontal Integration Strategy, Product Development and Market Penetration which are the highest weighted values TAS results. The TAS table value is obtained by multiplying the weight by the AS value.

Table18Alternative Strategies from TAS Value Results

Source: Processed data (2022)

The results of the QSPM analysis will be shown above, from the results of the QSPM that have been analyzed, a value of 5.96 is obtained for the communication strategy by providing information about the type and amount of fish availability as well as good relations and maintaining loyalty to consumers who have owned the main strategy that can be used UD. Koi Ambassador. Each customer service group has a group in which consumers who have bought fish from the group are used as media for promoting fish stocks and half of the consumers who own them will come to buy fish again.

After good relations have been maintained, the Koi ambassador can carry out supporting strategies with a score of 5.86 market penetration strategies from the four alternative strategies, namely market penetration strategies, product development, backward integration and horizontal integration. The market penetration strategy is a strategy that requires efforts to increase Ambassador Koi's market share through larger marketing efforts.

The following will describe each alternative strategy and strategic policy steps that can be taken by UD. Koi Ambassadors:

1. Market Penetration
   1. Companies must further intensify promotional activities with advertisements in order to dominate the market and compete with similar companies.
   2. Carry out effective and efficient marketing strategies by increasing the number of customer service providers as information providers to customers.
2. Product Development
   1. Improving fish quality by supervising quality control on fish,
   2. Adding types of koi fish according to market tastes.
3. Forward and backward integration
   1. Establish good relations with suppliers by giving reasonable prices and according to the quality of the fish.
   2. Carry out direct supervision of suppliers and farmers so that the fish supplied is really of good quality and there are no delays in supply.
4. Horizontal Integration: Collaborating with business partners and the government to develop capital and companies.

1. Based on the feasibility analysis of the koi fish business at UD. Duta Koi Sejahtera is said to be feasible and very potential in terms of the feasibility analysis aspect of the financial aspect consisting of an NPV of 1,827,733,744 NPV value > 0 is positive which means the koi fish business is feasible to run, the investment made is feasible because the IRR is 166%> 1, the calculation results are B value /C The koi fish ratio is 890,389,431 > 1 means it is feasible to run and the investment time needed to return the capital that has been used is worth the effort to do. The time needed to pay back is 1 year

2. On the development strategy of UD. Duta Koi uses the main strategy in the formulation of the development strategy plan, namely the calculation of the results of the QSPM that has been analyzed, a value of 5.96 is obtained for the communication strategy by providing information about the type and amount of fish availability as well as good relations and maintaining loyalty to consumers that are owned to be the main strategy that can be used by UD. Koi Ambassador. Each customer service group has a group in which consumers who have bought fish from the group are used as media for promoting fish stocks and half of the consumers who own them will come to buy fish again. After a good relationship has been maintained the koi ambassador can carry out the second strategy with a score of 5. 86 strategy of market penetration as the main strategy of the four existing alternative strategies namely market penetration strategy, product development, backward integration and horizontal integration. The market penetration strategy is a strategy that requires efforts to increase Ambassador Koi's market share through larger marketing efforts.

Conflict of Interest

The authors declare that they have no conflict of interest.

Funding: No funding sources 

Ethical approval: The study was approved by the Institutional Ethics Committee of UPN Veteran

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