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CHAPTER 2

THEORETICAL FRAMEWORK

2.1 Medical Knowledge

Based on the “Sociological Conceptualisation of Medical Knowledge

and Power” by Public Health Action Support Team, there has been a historical

development of medical knowledge from the early development of hospital-

based medicine in the late eighteenth and early nineteenth to the late

nineteenth century. Medical knowledge in the late eighteenth reflects a

timeline where significant changes takes place in the balance of power

between the doctors and their patients. During that time, patronage is no

longer required to be relied on by the medical elites, and the control of

medical knowledge shift from the patient to the clinician. As a result, many

new profession medicine consider hospitals as their training centers apart from

becoming sites for scientific research. (Public Health Action Support Team,

2011). Furthermore, medical knowledge in the late nineteenth century appears

to become what is called a new clinical gaze reflecting a timeline where

significant changes takes place in the social relationship of power between the

doctors and their patients. During that time, there has been an emergence of

medical term called laboratory medicine when the patients as the object of

profession medicine are no longer within the medical frame. (Public Health

Action Support Team, 2011).

According to MedicineNetInc (2016), conventional medicine refers to

all medicinal products, services, and practices that are carried out by qualified

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health professionals who hold medical doctor or doctor of osteopathy degrees

and by their allied health professionals such as registered nurses, physical

therapist or psychologists.

2.2 Non Medical Knowledge

According to MedicineNetInc (2016), Non medically presciption refers

to those patients who are neither medically prescribed nor require a

medicinally effect for them to recover from sickness. In general, non

medicinal knowledge or alternative medicine defines a specific term for any

medical products, services, and practices that can bring healing with almost

the same effects of medicine, but are not associated with standard scientific

healing and not being part of biomedicine. In this case, standard scientific

healing refers to standard care that are being provided by medical doctors,

nurses, and allied health professionals such as nurses and physical therapist.

MedicineNetInc (2016) states that non medical medicine is used in place of

standard medical care, for example not using standard approach to treat heart

disease. Furthermore, MedicineNetInc (2016) states that this non medical

practice or alternative medicine practice consists of a wide range of health care

practices such as homeopathy, traditional medicine, chiropractic, acupuncture,

naturopathy, and energy medicine.

2.3 Definition of Physiotherapy

Physiotherapy (PT) was last defined by the World Health Organization

(WHO) in 1969, as the “art and science” of providing exercise programs for

muscle strengthening, stretching and coordination as well as work with light,

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hydrotherapy, heat and cold, and providing massage and manual tests to

estimate the muscle strength, nerve supply, functional abilities, range of joint

motion and measure vital capacities.

Physiotherapy is a form of health care aimed to individuals and / or

groups to develop, maintain and restore movement and function of the body

throughout the life span using manual handling, motion improvement,

equipment (physical, and mechanical electro therapeutic) training function,

communication. In doing ministry, the physiotherapist can accept patients

directly or by referral from other health professionals. (Permenkes no 80,

2013)

Noronon and Wikstom (1999) claimed that physiotherapy is based

broadly on science and humanism, and that therapeutic relationships and

communication are as important as the techniques in achieving healing. It is

argued that such an approach to the person as lived is a corollary to the

profession’s commitment to client-led goals and the implicit need for the

client to take personal responsibility and be motivated in the rehabilitation

process (Becker G & Kaufman S, 1995)

2.3.1 Treatments of Physiotherapy

There are several forms of treatment that comes under the

umbrella term of physiotherapy; these principally, include massage

therapy, hydrotherapy, electrotherapy and exercises and movements.

(SPORT Medicine Information, 2009)

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1. Massage: Massage is generally suitable for all patients and the

form and firmness of the massage will be tailored to the particular

case. Massage involves patterns and sequences of hand

movements, which ease tension in the muscles and joints and

improve blood flow; massage therapy can also increase mobility

and flexibility which improves the range of movement in the joints.

2. Hydrotherapy: hydrotherapy commonly takes place in a

specialized pool but can be carried out in a normal swimming pool

as long as it is shallow and reasonably warm. During a

hydrotherapy session a physiotherapist will encourage the patient

to do exercises which, coupled with the pressure of the water, will

improve circulation and allow the muscles and joints to move more

freely. Other techniques such as water jets and massage may also

be used to stimulate nerve activity.

3. Electrotherapy: electrotherapy involves the use of controlled

electric shocks in order to increase nerve activity; the dosage is

very low and this procedure is not painful. Electrotherapy is used to

decrease muscle pain and aid muscle repair and regeneration. There

are two main types of electrotherapy; these are known as

transcutaneous electrical nerve stimulation and neuromuscular

electrical stimulation. Physiotherapists may also use technology

such as lasers and ultrasound to facilitate the healing process.

4. Exercise and Movement: one of the fundamental concepts of

physiotherapy is to improve the range of movement of joints and

muscles. Physiotherapists often use a variety of exercises and

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stretches to improve flexibility and reduce stiffness; some of these

exercises may also be done at home. The range of stretches will be

tailored to suit the individual and will usually require a gradual

build-up of exercise; commonly patients start with gentle activities

such as walking and swimming before moving on to more

physically challenging exercise. The stretches will usually be

carried out at least once daily for a period of weeks or months.

2.3.2 Most Common Conditions Treated by

Physiotherapy

Physiotherapy can effectively treat a number of conditions and

help patients return to a pain free, normal life. This treatment focuses

on restoring body function that has been affected by injury, trauma, or

disease. It helps relieve pain, prevent stiffness, enhance range of

motion, and improve strength, co-ordination and mobility.

Physiotherapy also prescribes fitness programs that will help prevent

loss of mobility. The five major areas of Physiotherapy are orthopedic,

geriatric, neurological, cardiovascular, and pulmonary rehabilitation,

and pediatric.

The lists below are wide variety of common conditions that

cause pain and treated by physiotherapy:

• Spinal Problems- including prolapsed discs, degeneration, sciatica,

lumbago, stiff/painful necks and referred arm and leg pains

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• Joint problems - arthritis, injury, pain/ swelling/stiffness in joints

such as shoulders, elbows, wrists, hips, knees and ankles.

• Injuries – to muscles, ligaments, cartilage and tendon problems.

Work related conditions such as Repetitive Strain Injury (RSI)

• After surgery – rehabilitation after orthopedic surgery eg:hip and

knee replacements or general physiotherapy after general surgery

• Fracture-treatments to increase the healing rate and to gain full

function once the bones have healed

• Abdominal problems- such as spastic colon, colitis and irritable

bowel syndrome.

• Gynaecological conditions including stress incontinence salpingitis

and surgery rehabilitation.

• Obstetrics- including ante and post natal classes/ exercise/

relaxation/ advice and treatment for back pain during pregnancy.

• Chest conditions both medical and surgical including hayfever,

asthma and sinusitis, pneumonia, cystic fibrosis. Emphysema,

bronchitis, bronchiectasis.

• Neurological conditions such as strokes, head injuries, nerve

injuries , multiple sclerosis, shingles, cerebral palsy and ME.

• Paediatrics-for childhood conditions including postural and

walking problems

• Circulatory problems- such as Reynaulds disease, wounds, ulcers,

cardiac rehabilitation

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2.3.3 Relation between Physiotherapy and Psychology

Arvinen-Barrow et al (2007) wrote the main of the

rehabilitation process is ultimately to treat the injury and to ensure

athletes’ full recovery to functional fitness as rapidly and safely as

possible. It has been recognized that some athletes experience

emotional difficulties during injury and that psychological issues can

have a significant impact on the quality and speed of the sport injury

rehabilitation process. More recent research suggests that not only do

psychological factors influence injury recovery, but athletes’ adherence

to the injury treatment proceeds is also affected.

It has been stated that medical professional in regular contact

with the athlete during treatment are in an ideal position to inform,

educate, and assist with both psychological and physical process of

injury. Drawing from existing literature, Kolt indicates that

physiotherapists are best suited to provide psychological assistance for

injured athletes for four main reasons: (1) they are usually the primary

caretakers who deal with injured athletes on a day to day basis; (2) it

appears that psychological issues are often discussed in conjunction

with physical aspects of rehabilitation; (3) the techniques used in

physiotherapist involves touch, which can facilitate athletes to open up

to their therapist about psychological issues of their recovery; and (4)

existing studies suggest that athletes themselves feel that

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physiotherapist are in an ideal situation to address the psychological

aspect of injury.

Although research suggests that physiotherapist are best

positioned to address psychological issues with injured athletes, during

their professional training, they may receive very little or no training in

terms of how psychological techniques can facilitate recovery

processes and how to use these techniques in their work. (Barrow,

Hemmings, Weigand, Becker, & Booth, 2007)

2.3.4 Physiotherapy in Indonesia

Started as a profession and then transformed into an

association. Going back to the roots in 1956, the School of

Physiotherapist was established in Solo by the Father of Physiotherapy

in Indonesia, Prof. Dr. Soeharso. He is also a pioneer in the field of

orthopedics expertise through the establishment of Prostheses &

Orthopedics Institution in Solo (IFI, 2015).

In June 10th 1968, Indonesian Physiotherapy Association called

IKAFI was created based on the desire of members and Prof. Dr.

Soeharso. In 1970, the first congress of IKAFI was held in Jakarta and

opened on behalf of the Minister of Health to produce Leadership and

work program until 1974. By the time of the year 1996, Indonesian

Physiotherapy Association (IKAFI) changed its name to IFI (Ikatan

Fisioterapi Indonesia) in the Makassar congress VII.

About the community service, it focuses mainly in the early

detection of child disability, and especially for the rehabilitation of

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patients after a disaster, such as earthquake disaster in Yogyakarta, and

tsunami in Aceh.

Furthermore, as a form of professional responsibility and

participation in the realization of The Independent and Healthy

Community, Indonesian Physiotherapy Association cooperates with

the government and all supporting parties to increase the competence

of professional development, through education, and regulations

necessary (IFI, 2015).

2.4 Consumer Behaviour

From theory on consumer behaviour (Schiffman et al., 2011)

consumer behaviour is defined as the behaviour that consumers display in

searching for, purchasing, using, evaluating and disposing of the products and

services that they expect will satisfy their needs. Consumer behaviour focuses

on how individual consumers, families, or households make decisions to spend

their available resources such as time, money, and effort on consumption-

related items. That includes what they buy, why they buy it, when they buy it,

where they buy it, how often they buy it, how often they use it, how they

evaluate it after purchase and use, the impact of such evaluations on future

purchases and how they dispose of it.

2.4.1 Cultural Factors

Schiffman et al (2011) states that culture is defined as the sum

of total of learned beliefs, values and customs that serve to direct the

consumer behaviour of members of a particular society. The belief and

value components of culture refer to the accumulated feelings and

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priorities that individuals have about behaviours, possesions, and

goals. More precisely, beliefs consist of the very large number of

mental or verbal statements that reflect our particular knowledge and

assessment of something. Values are also beliefs but differ from other

beliefs because they meet five criterias such as they are relatively few

in number, they serve as a guide for culturally appropriate behaviour,

they are enduring or difficult to change, they are not tied to specific

objects or situations and they are widely accepted by the members of a

society.

In contrast to beliefs and values, customs are overt modes of

behaviour that constitute culturally approved or acceptable ways of

behaving in specific situations. Customs consist of everyday behaviour

as well as accepted rituals around events such as Christmas or marriage

and weddings. By using the broad approach of beliefs, values, and

customs represented in cultural factor help us to predict likely

consumer acceptance of their products, service, or brands.

2.4.2 Social Factors

Schiffman et al (2011) states that sociocultural factors or values

is defined as abstract cognitions that can be measured via one of

several psychological or attitudinal instruments. They are the facts and

experiences that directly influence individual’s personality, attitudes,

and lifestyle. In addition, these factors and values can also be used to

provide a base for market segmentation. For measurement purposes,

these factors are a consumer’s abstract cognitions and can be measured

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via psychological tests. Sociocultural factors are more related to

consumer-rooted than that of consumption-specific one because they

represent consumer’s social characteristics, but does not represent

anything related to usage-behaviours or attitudes and preferences

towards specific products or buying situations.

2.4.3 Personal Factors

Schiffman et al (2011) states that personality is defined as the

unique, dynamic organisation of characteristics of a particular person,

physical and psychological, which influence behaviour and responses

to the social and physical environment. Of these characteristics, some

will be entirely unique to the specific person and others will be shared

with a few, many or all other people.

In addition, personality has three distinct components that are

of central importance includes personality reflects inidividual

differences, personality is consistent and enduring, and personality can

change. Schiffman et al (2011) states that individual’s personality are a

unique combination of internal factors, therefore no two people or

consumers are exactly alike. Nevetheless, many people tend to be

similar in terms of a single personality characteristic. Then, individual

personality tends to be both consistent and enduring, however, their

consumption behaviour often varies considerably because of the

various factors that affect behaviour. Although, individual personality

tends to be consistent and enduring, it may still change under certain

circumstances.

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2.5 Motivation and The Model of Motivational Process

From theory on consumer behaviour (Schiffman et al., 2011)

motivation is described as the driving force within individuals that impels

them to action. This driving force is produced by a state of tension that exists

as the result of an unfilled need. Individuals strive, both consciously and

subconsciously, to reduce this tension through behaviour that they anticipate

will fulfil their needs and therefore relieve them of the stress they feel. The

specific goals individuals choose and the patterns of action they undertake to

achieve their goals are the result of individual thinking and learning.

The model of motivation process, according to Schiffman et al (2011)

is the model that portrays motivation as a state of need-induced tension that

drives an individual to engage in behaviour that he or she expects will gratify a

need and therefore reduce the tension. The course of action being pursued will

determine whether gratification is actually achieve or not. For example, if a

primary school boy exoects to become a great football player by wearing the

brand of footballers that Christiano Ronaldo wears, he is likely to be

dissapointed, if he takes football course and practices diligently, he may

succeed.

In addition, the specific course of action being pursued, and the

specific goals, are chosen on the basis of their thinking process such as

cognition and previous learning such as experiences. For those reasons, most

of the time, consumers are being influenced from their cognitive processes that

attempted by marketers who fully understand motivational theory.

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Figure 2.1_ Model of the motivation process Source: Schiffman et al (2011)

2.6 Physiotherapy Centre

According to Clinical Establishment Act (2010) a physiotherapy centre

is a paraclinical establishment providing physical therapy services by a

physiotherapist to patients with a recent prescription or referral from a

licensed medical doctor (physician/surgeon). After three weeks or earlier if

indicated a review and re-prescription from the treating medical doctor is

required for continuing physical therapy services. The physical therapy

services are highly varied from manual services using hand by the

physiotherapist to the automatic one using high tech technology equipments.

2.7 Business Model Creation

From theory on business model creation (Osterwalder & Pigneur,

2010) a business model describes the rationale of how an organization creates,

delivers, and captures value. It is essentially used on the starting point for any

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good discussion, meeting, or workshop on business model innovation to share

the same understanding about the description and discussion of the product.

The challenge is that the concept must be simple, relevant, and intuitively

understandable, while not oversimplifying the complexities of how enterprises

function.

In addition, a business model is the “core content” or the “short story”

of the company (actual or prospective). A business plan is the “guideline for

the action” or the “full story”. (Marrero, 2010) Why are we using the BMC for

our Theoretical Framework? It is because business model innovation is one of

the least used and most powerful ways to create sustainable profit growth,

economic development and create new ‘markets’ and ‘industries’. (Scofield,

2010)

Osterwalder & Pigneur (2010) also mentioned the purpose of a

business plan is to describe and communicate a for-profit or non-profit project

and how it can be implemented, either inside or outside an organization, The

motivation behind the business plan may be to “sell” a project, either to

potential investors or internal organizational stakeholders. A business plan or

as we call it the business model canvas, as shown on figure 2.2 may also serve

as an implementation guide.

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Figure 2.2 The Business Model Canvas Source: Business Model Generation website (2015)

A business model can best be described through nine basic building

blocks that show the logic of how a company intends to make money. The

nine blocks cover the four main areas of a business: customers, offer,

infrastructure, and financial viability. The business model is like a blueprint

for a strategy to be implemented through organizational structures, processes,

and systems. It combines creativity with a structured approach, the best of

both worlds (Baida, 2010). Furthermore, it begin with the end in mind while

taking the end client perspective (Burrow, 2010).

Here is the explanation for the nine building blocks as shown in figure

2.2, it consists of:

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1) Customer Segments

The customer segments building block defines the

different groups of people or organizations as enterprise

aims to reach and serve (Osterwalder & Pigneur, 2010).

Customer groups represent separate segments if:

• Their needs require and justify a distinct offer

• They are reached through different Distribution

Channels

• They require different types of relationships

• They have substantially different profitabilities

• They are willing to pay for different aspects of

the offer.

There are different types of Customer Segments. Here

are some examples:

• Mass market: this type of business model is

often found in the consumer electronic sector,

because it does not distinguish between different

Customer Segments. It is more focusing on one

large group of customers with broadly similar

needs and problems.

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Niche market: such business models are often

found in supplier-buyer relationships, for

example, many car part manufacturers depend

heavily on purchases from major automobile

manufacturers. It targets niche markets of

specific, specialized Customer Segments.

• Segmented: this type of business model

distinguish between market segments with

slightly different needs and problems. For

example the retail arm of a bank like Credit

Suisse, it serves three different Customer

Segments: the watch industry, the medical

industry, and the industrial automation sector,

and offers each slightly different Value

Propositions.

• Diversified: this type of business model serves

two unrelated Customer Segments with very

different needs and problems, for example

Amazon with its book retail and cloud

computing services, which are two different

kind of products.

• Multi-sided Platform: this type serves two or

more interdependent Customer Segments. Both

segments are required to make the model work.

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2) Value Propositions

Demonstrated by Osterwalder & Pigneur (2010) the

value propositions building block describes the bundle

of products and services that create value for a specific

Customer Segment. Elements from the following non-

exhaustive list can contribute to customer value

creation:

• Newness: some Value Propositions satisfy an

entirely new set of needs that customers

previously didn’t perceive because there was no

similar offering.

• Performance: improving product or service

performance has traditionally been a common

way to create value.

• Customization: Tailoring products and services

to the specific needs of individual customers or

Customer Segments creates value. This

approach allows for customized products and

services, while still taking advantage of

economies of scale.

• “Getting the job done”: Value can be created

simply by helping a customer get certain jobs

done.

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• Design: this is an important but difficult element

to measure. A product may stand out because of

superior design.

• Brand/Status: customers may find value in the

simple act of using and displaying a specifi

brand.

• Price: offering similar value at a lower price is a

common way to satisfy the needs of price-

sensitive Customer Segments, but low-price

Value Propositions have important implications

for the rest of a business model.

• Cost reduction: helping customers reduce costs

is an important way to create value.

• Risk reduction: customers value reducing the

risks they incure when purchasing products or

services.

• Accessibility: making products and services

available to customers who previously lacked

access to them is another way to create value.

This can result in new technologies.

• Convenience/Usability: making things more

convenient or easier to use can create substantial

value.

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3) Channels

Osterwalder & Pigneur (2010) found that the Channels

Building Block describes how a company

communicates with and reaches its Customer Segments

to deliver a Value Proposition. Channels serve several

functions, including:

• Raising awareness among customers about a

company’s products and services

• Helping customers evaluate a company’s Value

Proposition

• Allowing customers to purchase a specific

products and services

• Delivering a Value Proposition to customers

• Providing post-purchase customer support

Channels have five distinct phases. Each channel can

cover some or all of these phases. We can distinguish

between direct Channels and indirect ones, as well as

between owned Channels and partner Channels. These

Channel Types are:

Own by the company:

• Sales force (direct)

• Web sales (direct)

• Partnerships

Own stores (indirect)

Partner stores (indirect)

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Wholesaler (indirect)

Afterwards, here are the Channel Phases:

1. Awareness: how do we raise awareness about

our company’s products and services?

2. Evaluation: how do we help customers evaluate

our organization’s Value Proposition?

3. Purchase: How do we allow customers to

purchase specifi products and services?

4. Delivery: How do we deliver a Value

Proposition to customers?

5. After sales: How do we provide post-purchase

customer support?

4) Customer Relationships

The Customer Relationships Building Block describes

the types of relationships a company establishes with

specific Customer Segments. As has been shown

Osterwalder & Pigneur (2010) Customer Relationships

may be driven by the following motivations:

Customer acquisition

• Customer retention

• Boosting sales (upselling)

We can distinguish between several categories of

Customer Relationships, and they are:

• Personal assistance

• Dedicated personal assistance

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• Self-service

• Automated services

• Communities

• Co-creation

5) Revenue Streams

Osterwalder & Pigneur (2010) posited that the Revenue

Streams Building Block represents the cash a company

generates from each Customer Segment (costs must be

subtracted from revenues to create earnings). A business

model can involve two different types of Revenue

Streams:

1. Transaction revenues resulting from one-time

customer payments

2. Recurring revenues resulting from ongoing

payments to either deliver a Value Proposition

to customers or provide post-purchase customer

support.

Here are several ways to generate Revenue Streams:

• Asset sale: selling ownership rights to a

physical product.

• Usage fee: generated by the use of a particular

service. The more a service is used, the more the

customer pays.

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• Subscription fees: this type of Revenue Stream

is generated by selling continuous access to a

service.

• Lending/Renting/Leasing: created by

temporarily granting someone the exclusive

right to use a particular asset for a fixed period

in return for a fee.

• Licensing: this Revenue Stream is generated by

giving customers permission to use protected

intellectual property in exchange for licensing

fees. It allows rightsholders to generate revenues

from their property without having to

manufacture a product or commercialize service.

6) Key Resources

The Key Resources Building Block describes the most

important assets required to make a business model

work, as Osterwalder & Pigneur (2010) demonstrated,

Key Resources can be categorized as follows:

• Physical: it includes physical assets such as

manufacturing facilities, buildings, vehicles,

machines, systems, point-of-sales systems, and

distribution networks.

• Intellectual: this resources are difficult to

develop but when successfully created may offer

substantial value.

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• Human: crucial in knowledge-itensive and

creative industries.

• Financial: some business models call for

financial resources and/or financial guarantees,

such as cash, line of credit, or a stock option

pool for hiring key employees.

7) Key Activities

Osterwalder & Pigneur (2010) found that the Key

Activities Building Block describes the most important

things a company must do to make its business model

work. Key Activities can be categorized as follows:

• Production: these activities relate to designing,

making, and delivering a product in substantial

quantities and/or superior quality.

• Problem solving: Key Activities in this type

relate to coming up with new solutions to

individual customer problems.

• Platform/Network: business models designed

with a platform as a Key Resource are

dominated by platform or network related Key

Activities. Platform management, service

provisioning, and platform promotion are all

related with this type of Key Activities.

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8) Key Partnerships

The Key partnerships Building Block describes the

network of suppliers and partners that make the

business model work, this explained from theory on

Key Partnerships (Osterwalder & Pigneur, 2010). We

can distinguish between four different types of

partnerships:

1. Strategic alliances between non-competitors

2. Coopetition: strategic partnerships between

competitors

3. Joint ventures to develop new businesses

4. Buyer-supplier relationships to assure reliable

supplies

These points can be useful to distinguish between three

motivations for creating partnerships:

• Optimizaton and economy of scale: the most

basic form of partnership or buyer-supplier

relationship is designed to optimize the

allocation of resources and activities.

• Reduction of risk and uncertainty:

partnerships can help reduce risk in a

competitive environment chracterized by

uncertainty.

• Acquisition of particular resources and

activities: few companies own all the resources

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or perform all the activities described by their

business models.

9) Cost Structure

According to Osterwalder & Pigneur (2010) the Cost

Structure describes all costs incurred to operate a

business model. Here are types of the Cost Structures:

• Cost-driven: it focus on minimizing costs

wherever possible. This approach aims at

creating and maintaining the leanest possible

Cost Structure, using low price Value

propositions, maximum automation, and

extensive outsourcing.

• Value-driven: some companies are less

concerned with the cost implications of a

particular business model design, and instead

focus on value creation.

• Fixed costs: costs that remain the same despite

the volume of goods or services produced.

• Variable costs: varies proportionally with the

volume of goods or service produced. Some

businesses, such as music festivals, are

characterized by a high proportion of variable

costs.

• Economies of scale: cost advantages that a

business enjoys as its output expands. Larger

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companies, for instance, benefit from lower bulk

purchase rates. This and other factors cause

average cost per unit to fall as output rises.

• Economies of scope: cost advantages that a

business enjoys due to a larger scope of

opertaions. Distribution channels, for example

may support multiple products.

2.8 Internal and External Analysis

In order to perform an anlysis on internal and external environment,

SWOT analysis as shown in figure 2.3 (Strength, Weakness, Opportunity and

Threat analysis) need to be done. According to Peteraf (1993), SWOT analysis

is a simple but powerful tool for sizing up a company’s internal strengths and

competitive deficiencies, its market opportunities, and the external threats to

its future well-being. Here are a brief explanations about each of the factors:

• Strengths: the internal factors that aides the idea to reach the goals set.

• Weaknesses: the internal factors that could become obstacles for the

idea to reach the goals set.

• Opportunities: external environmental factors that create in roads to

achieving success either for the company or to the specific project.

• Threats: the external elements that can cause trouble for the company.

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Figure 2.3 FUNsiotherapy SWOT Analysis Source: writer (2016)

2.9 Marketing Strategy

A strategy that combines all of its marketing goals into one

comprehensive plan is the definition of marketing strategy from Kottler and

Keller (2013). A good marketing strategy should be drawn from market

research and focus on the right product mix in order to achieve the maximum

profit potential and sustain the business. Moreover, it is the foundation of a

marketing plan.

Ini this paper, our team would utilize two marketing strategy, that is

STP analysis for a start, then followed by Marketing Mix tools.

2.9.1 STP Analysis

The STP Analysis is divided into three parts, Market

Segmentation, Target Market and Positioning of the service. Each part

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would determine how the company offers their service to the public

(Kottler and Keller, 2013)

• Segmentation

Segmentation identifies all segments available for the service,

where the objective is to find attractive market for the service.

Market segments are defined into four descriptive

characteristics: Geographic, Demographic, Psychographic, and

Behavioral segmentations:

1. Geographic Segmentation: divides the market

into geographical units such as nations, states,

regions, countries, cities or neigborhoods.

2. Demographic Segmentation: divides the

market on variables such as age, family size,

family lifecycle, gender, income occupation,

education, religion, race, generation, nationality,

and social class.

3. Psychographic Segmentation: divide

consumers into groups of the basis of

psychological / personality traits, lifestyle or

values.It also includes lifestyle and personality,

4. Behavioral Segmentation: divide consumers

into groups on the basis of their knowledge of,

attitude towards, use of or response to a product.

This includes segmentation by behavioral

occasions, and segmentation based on benefits.

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• Targeting

Targeting is the actual goal and objective in market that

marketer would like to reach.

• Positioning

Positioning is an analysis to know the position of the service

compared to other similar service.

2.9.2 Marketing Mix

Marketing mix modeling focuses on incremental growth

instead of baseline sales or long term effects (Kottler and Keller, 2013)

Our team utilize the 7Ps marketing mix that consists of: Product, Price,

Place, Promotion, People, Physical Evidence, and Process. These

seven controllable elements need to be set to serve the needs of the

customer to earn the optimum income.

• Product: defines the type of product and services that the

company offers, whether or not the products and services are

suitable for the market.

• Price: defines the price set to purchase the product or service.

• Place: gives a definite info about the location and the place

where your product or service is actually sold.

• Promotion: explain all the ways you tell your customers about

your products or services and how you do you manage to

market and sell it.

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• People: defines the people inside and outside of your business

who are responsible for every element of your slaes and

marketing strategy and activities.

• Physical Evidence: explains the way the company presents

their product or service to the customers.

• Process: how to deliver the product or service to the customer?

2.10 Business Plan

Based on definition from (Ehmke & Akridge) business plan is a

process of writing down what is involved in bringing your idea to reality

requires dealing with the why, what, who, how, where, when, and how much

of your venture. Further explanation about our business plan will be written in

Chapter 3.

2.11 PESTEL Analysis

The PESTEL Analysis is used to screen and analyze the external

marketing environment of a company. The PESTEL analysis is divided into

six different factors that can affect the company strategies as a whole,

therefore its very important to follow the pestle framework analysis in order to

assess how exactly the company performance is being influenced by those

factors. The six factors include political factors, economic factors, social

factors, technological factors, legal factors, and environmental factors.

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Figure 2.4 The PESTEL Framework Source: Porter (2008)

2.11.1 Political Factors

According to PESTEL Analysis (2016) Political factors

refers to how government regulations and legal issues affect a

company ability to be profitable and successful. These factors

take into account the political situation of a country and the

world in relation to the country. Some of the major political

factors include tax policy, trade regulation, and stability of

government. For example, all the policies, all the taxes law and

every tariff that a government levies over a trade falls under

political factors.

2.11.2 Economic Factors

According to PESTEL Analysis (2016) Economic

factors examines the outside economic issues that can play a

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role in a company’s success. Economic factors include all the

determinants of an economy and its condition such as the

inflation rate, the interest rate, the monetary fiscal policies, the

foreign exchange rates that affect imports and exports. All of

these factors in which an economy might move, therefore its

important to analyze these factors based on their environment

so as to build strategies that fall in line with all the changes that

are about to occur.

2.11.3 Social Factors

According to PESTEL Analysis (2016) Social factors

examines the demographic and cultural aspects of the

company’s market. Every country is different and every

country has a unique mindset, thus these mindsets cast an

impact on the business and the sales of their product and

services. Some of the major social factors include demographic,

population growth rate, age distribution, lifestyle issues where

all of these are carefuly studied by companies to understand the

market and the consumer better.

2.11.4 Technological Factors

According to PESTEL Analysis (2016) Technological

factors takes into consideration technology issues that affect

how an organization delivers its products or services to the

marketplace. This is because technological factors greatly

influence a business. Technology changes every minute and

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therefore companies need to stay connected along the way and

integrated as and when needed. Some of the technological

factors include new discoveries and innovations, the life cycle

of current technology, and the role of the internet. These factors

are analyzed to understand how the consumers react to

technological trends and how they utilized them for their

benefit.

2.11.5 Legal Factors

According to PESTEL Analysis (2016) Legal factors

refers to the legal and legislative issues that may change from

time to time and many of them may effect the company

directly. For example, if a regulatory body would set up a

regulation for the industries, then that law would impact all the

industries and business that strife in that company, therefore

business also analyze the legal developments happening in their

environment.

2.11.6 Environmental Factors

According to PESTEL Analysis (2016) Environmental

factors refers to the rate of different industries in a country may

affect the company either in a positive way or negative way.

Environmental factors include geographical location, the

climate, the weather, waste disposal laws, environmental

protection laws, and energy consumption regulation.