Browse > Article
http://dx.doi.org/10.15722/jds.18.7.202007.63

Target Market Selection Using MCDM Approach: A Study of Rolling Stock Manufacturer  

SUKOROTO, SUKOROTO (Universitas Muhammadiyah Yogyakarta)
HARYONO, Siswoyo (PT INKA (Persero))
KHARISMA, Bedy (PT INKA (Persero))
Publication Information
Journal of Distribution Science / v.18, no.7, 2020 , pp. 63-72 More about this Journal
Abstract
Purpose: This study examines the market segmentation and strategy of PT INKA, a rolling stock manufacturer in Indonesia. Research design, data and methodology: The study used the MCDM (Multiple Criteria Decision Making) method specifically the AHP (Analytical Hierarchy Process). The AHP method was applied to identify the target market. This method or approach considers the market attractiveness and competitive strength criteria with quantified parameters. Results: a) Australia, Kenya, Tanzania, New Zealand, and India emerge as the top five target markets; b) There is justification for rolling stock manufacturers to allocate their resources in winning the market share. Conclusion: The main challenge confronting the rolling stock manufacturer is limited resources to acquire a particular market share despite abundant opportunities in this sector. Despite the mastery of technology and long experience in the industry, selecting a target market with multiple criteria could be difficult for an emerging rolling stock manufacturer in South East Asia.
Keywords
Multiple Criteria Decision Making (MCDM); Analytical Hierarchy Process (AHP); Market share; Limited resources; Rolling Stock manufacturer;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Al-shabeeb, A. R. R. (2015). A modified analytical hierarchy process method to select sites for groundwater recharge in Jordan. University of Leicester.
2 Berger, R. (2020). Global rail supply industry remains on a growth track.Retrieved from https://www.unife.org/news/189- global-rail-supply-industry-remains-on-a-growth-track.html
3 Briginshaw, D. (2017). Kenya allocates more funds to the standard-gauge project, railjournal.com. Social Policy & Administration.
4 Briginshaw., D. (2020). New Zealand to invest $ US 700m in the rail network.
5 Cano, J., Campo, E., & Gomez-Montoya, R. (2017). International market selection using fuzzy weighing and Monte Carlo simulation. Polish Journal of Management Studies, 16.
6 Cano, J. A., & Baena, J. J. (2015). Impact of Information and communication technologies in international negotiation performance. Revista Brasileira de Gestao de Negocios-RBGN, 17(54), 751-768.
7 Daim, T. U., Udbye, A., & Balasubramanian, A. (2013). Use of analytic hierarchy process (AHP) for selection of 3PL providers. Journal of Manufacturing Technology Management.
8 Forman, E. H., & Gass, S. I. (2001). The analytic hierarchy process-an exposition. Operations Research, 49(4), 469-486.   DOI
9 Gonzalez-Prida, V., Viveros, P., Raman, A., & Crespo, A. (2015). Analytic Hierarchy Process as a Decision Tool for Operative Marketing. Encyclopedia of Information Science and Technology (3rd Ed., pp. 5358-5370).
10 Haddad, M., Sanders, D., & Tewkesbury, G. (2020). Selecting a discrete multiple criteria decision making method for Boeing to rank four global market regions. Transportation Research Part A: Policy and Practice, 134, 1-15.   DOI
11 Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2019). Marketing management. London, United Kingdom: Pearson UK.
12 Ishizaka, A., & Labib, A. (2009). Analytic hierarchy process and expert choice: Benefits and limitations. Or Insight, 22(4), 201-220.   DOI
13 Jha, S. (2020). India announces $US 22.4bn 2020-21 rail budget.
14 Keegan, W. J. (2017). Global marketing management. Noida, India: Pearson India.
15 Lall, S. (1991). Marketing barriers facing developing country manufactured exporters: a conceptual note. The Journal of Development Studies, 27(4), 137-150.   DOI
16 Mark, C. (2019). Australian federal budget funds rail projects. International Railway Journal.
17 NONG, N.-M. T., & HO, P. T. (2019). Criteria for Supplier Selection in Textile and Apparel Industry: A Case Study in Vietnam. The Journal of Asian Finance, Economics and Business, 6(2), 213-221.   DOI
18 Oirere, S. (2014). Tanzania seeks advisor for PPP rail upgrade.
19 Saaty, T. L. (1990). The analytic hierarchy process in conflict management. International Journal of Conflict Management.
20 Quarterly, M. (2008). Enduring ideas: the GE-McKinsey ninebox matrix. McKinsey and Company.
21 Saaty, T. L. (1994). How to make a decision: the analytic hierarchy process. Interfaces, 24(6), 19-43.   DOI
22 Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International journal of services sciences, 1(1), 83-98.   DOI
23 Saaty, T. L., & Vargas, L. G. (2012). Models, methods, concepts & applications of the analytic hierarchy process (Vol. 175). Berlin, Germany: Springer Science & Business Media.
24 Zhao, J., Li, J., & Li, L. (2011). An Analysis on the Target Market of China's Textile and Garment Export Trade. Procedia Engineering, 15, 4718-4722.   DOI
25 Tosun, J., Unt, M., & Wadensjo, E. (2017). Youth- oriented active labour market policies: Explaining policy effort in the Nordic and the Baltic states. Social Policy & Administration, 51(4), 598-616.   DOI
26 Yang, H.-C., Huh, M.-Y., & Yang, W.-R. (2018). GAP: A study on strategic derivation approach using perceptual difference. International Journal of Industrial Distribution & Business, 9(2), 17-26.   DOI
27 Zhang, M., Zhuang, C., & Gao, B. (2007). International market selection for agricultural product using fuzzy neural networks. Paper presented at the Fourth International Conference on Fuzzy Systems and Knowledge Discovery (FSKD 2007).
28 Aghdaie, M. H., Zolfani, S. H., Rezaeinia, N., & Mehri-Tekmeh, J. (2011). A hybrid fuzzy MCDM approach for market segments evaluation and selection. Paper presented at the 2011 International Conference on Management and Service Science.
29 Aghdaie, M. H., & Alimardani, M. (2015). Target market selection based on market segment evaluation: a multiple attribute decision making approach. International Journal of Operational Research, 24(3), 262-278.   DOI