SHUTLECOCK, POTENCY OF BADMINTON INDUSTRY AND FREE MARKET OPPORTUNITY IN  GLOBALIZATION ERA TO FACE SEA GAMES 2011 
  
Sugiharto 
  Sport Science Department 
Faculty of Sport Science 
Semarang State University 

Abstract 
Sea Games 2011 will be held in Indonesia , and one sport that will be competed is badminton. 
Indonesia has great potency in sport industry; therefore, opportunities in sport business are wide opened. Finance is the most problem faced in developing sport in Indonesia. Sport industry or sport business and the implementation of the ordinance of the Republic of Indonesia Number 3 years 2005, about “ `National sport system that consists of 3 verses: 78, 79 and 80,  is expected to solve the problem. Sport industry is “each product, goods, service, place, or one’s ideas in connection to sport that is offered to public.  
In accordance to `SWOT`analysis, the development of sport industry need to be planned well by either government, society, and all sport stakeholders  in Indonesian including the Institution of Sport Teacher Education. 
Nowadays, Indonesian people can get sport products that they want, including those which are from other countries, freely. As the result, the highest quality product that offers the lowest price and the best service will lead the market (market leader). These qualified product and services can only be reached by the most efficient firm, which dynamically accesses and applies qualified technology. 
  
Key word: Sport industry, shuttlecocks, potency of free market opportunity, globalization. 

FOREWORD 
Sea Games 2011 will be held in Indonesia, one of the sport branch competed is badminton. Shutlecock is the main instrument used in badminton, which is most produced in Central Java and becomes a proud product of industry. 
The great potency of sport agent and the sport scopes including education sport, Sport for all, and competitive sport encourage the growth of commodity in sport industry. The growth of sport industry will decrease the problems of sport in our country. The most problem faced in developing sport in Indonesia is the finance. It is understandable since state budget must be priorated to the urgent sectors for our economy repair. As the consequence, monetary cycle in sport si very limited so that sport institution cannot handle sport development optimally. However, the recent problem is how to change sport into something economic? It is not an easy work to do for Indonesia. 
As a social and cultural phenomenon, sport cannot avoid the modernity value that is the domination of the market. Its existence sociologically depends on its ability to adapt the market; contrariwise, market will make it as the target of its extensiveness. Sport is a commodity that becomes the targets of the market like the other commodity does, (Slack, 1998), and involves in Marketing Strategy of Multy Events: Toward Sea Games 2011. 
Due to the potency owned by Indonesia, the opportunity of sport business is wideopened. Sport industry has had legal and strong law protection so that it can not only be developed in Indonesia, but also in all over the world. The law implemented in Indonesia is the ordinance of the Republic of Indonesia Number 3 years 2005, about `National sport system’ that consists of 3 verses: 78, 79 and 80. 
Above of all, what should be underlined now is what and how to develop the potency of sport industry and the opportunity of free market in globalization era? Partially, there have been sport industries in Indonesia, but helps from many sides are still needed to maximize the outcomes achieved. Therefore, in this discussion the writer proposes the potency of sport industry and free market opportunity in globalization era. 
The problem reveals in this study are how the description of sport industry as an aspect of management is, what the characteristics and orientations of sport industry are, what the segmentation of sport industry are, and how the potency of sport industry and free market opportunity in globalization era is. 

LIBRARY RESEARCH 
1.      Sport Industry as an Aspect of Management 
Sport management means each combination of planning, organizing, arrangement, observation, budgeting, leadership and evaluation skill in term of organization or department whose product or main service concerning with sport and physical education ” (DeSensi et al, 1990).  
According to Pitts and friends (1994), the term of ‘sport industry’ is “ each product, good, service, place, or one’s ideas in connection to sport that is offered to public.  

2.      Characteristics of Sport Industry 
A sport industry must show its ability and meet the following conditions: 
a.         Showing consistent attention on business.  
b.        It is a part or a branch of a business. 
c.         It employs fund and a lot of labours, those are the real activities of commerce. 
                                                                   (Webster’s New Collegiate Dictionary)  
 3.      Sport Industry Orientation 
An important aspect of sport industry that can develop industry orientations is an event. A sport event contains 2 important aspects as the factors that influence the flew of the sport industry. The first is how to build sport (internal aspect) and the other is how to sell sport (external aspect). The internal aspect involves society participations and their infrastructure equipments (tools) 
4.      Sport Industry Segmentation 
Sport Industry Segmentation is classified according to its product types. Parks and friends (1998) divide it into three segments: Sport performance, Sport Production, and sport promotion. 
5.      Potency of Sport Industry in Globalization Era 
Along with the new world orientation pattern that distinguished by fast acceleration of technology development, especially information technology, and a variety life style which assimilate, and the world trend, therefore globalization appears as certainty occurred in all life aspect, including economy aspect and sport industry.   
6.      Development of Sport Industry Potency in Indonesia 
Point out the various description of sport industry orientation, classification of segmentation, and characteristics of sport activity, sport industry potency in Indonesian has big opportunity to be developed along with the objective condition including the strength, weakness, opportunity,  and threats.   
7.      Free market opportunity 
            Todays’ competition climate causes Indonesian people can get sport products that they want, including those which are from other countries, freely. As the result, the highest quality product that offers the lowest price and the best service will lead the market (market leader). These qualified product and services can only be reached by the most efficient firm, which dynamically accesses and applies qualified technology. 
  
DISCUSSION 
1.      	Sport Industry as an Aspect of Management 
Before discussing further, it is better for us to notice threes points in connection to the growth of sport industry in Indonesia , which are: a). There are big amount of sport agent potency and various scope of of sport dimension. This constitutes the result of the government.s success in socializing sport, b). There are three sport sectors. They are education sports, sport for all, and competitive sport; and c). The growth of sport industry has a wide opportunity. These three sectors causes sport industry can penetrate at any market segments.  
To reach and to dominate the market well, a good management is needed by the business performers. The followings are some management approaches applied in some methodes:  
a.       The Classical Approach 
This approach focuses on the function of a manager.. The functions are to plan, organize, and to control.  
b.      The Behavioral Approach 
This methode focuses on individual needs and the difference. As the basis of this approach, It also considers some fields: psycology, anthropology, and sociology (Davis KA, 1994). 
c.       The Management Scienties  Approach 
This approach is managed with scientific approach such as statistic, mathematics, and so forth, to calculate anything in order to gain efficiency and effectivity. 
d.      The System Approach 
This approach is built according to the three (3) approaches earlier. This approach is hoped to be able to identify, analyze, and predict the entire system and its function more precisely and more accurately so that the objectives can be met more successfully. 
e.       The Contingency Approach 
The possibility theory said that ‘there is No ”ONE BEST” way to manage (Koonzt, 1990), so each problem may be solved with different methode without reducing the intentions and the aims wanted. 
Developing sport industry, we need public relations's support, marketing and positioning working relationship. There are 4 things in marketing that need to remember: product, price, promotion, distribution (Lewis and Appenzeller, 1986). The chart of it is as follows: 
          Positioning Working Relationship

Public Relations

           Marketing 	        Pruduct, Price, Promotion, and Distribution

Figure 2:  4 important things in Marketing 
Source: Lewis and Appenzeller, (1986), Successful Sport Managemet. Charlottesville Virginia: The Michie Company Law Publisher. 
  
2.     	Characteristics of Sport Industry and Its Orientation 
A sport industry must show its ability and meet the following conditions: a) Showing consistent attention on business, b)  It is a part or a branch of a business, c) It employs fund and a lot of labours, those are the real activities of commerce. 
An attention on the business of sport instruments, such as racket, net, and shuttlecock, must be given consistantly. The attention can be performed by maintaining the quality of the materials, fascilities and instruments, careful and precise work pattern, and the number of the product that always increases. As a business part of sport industry, the making of badminton instruments, such as racket, net, and shuttlecock, becomes the main business that employs lots of workers. It secures the employees’ prosperity by joining the legal business association, meeting all the rules, and by having sufficient financial to keep the run of the production. 
Not only in Jakarta can the real image of sport industry business be observed before Indonesia Open, badminton championship, but also in Lawatan village, Tegal, Central Java that most of the people there are shuttlecock makers. There the makers must provide thousands of shuttlecock for the world class badminton playes everyday. Lawatan village is known as the center of shuttlecock producer.Untung, one of the makers who usually makes 40 to 70 dozen a day, now it increases to 120 dozen a day. Shuttlecock product is both either domestically and foreignly. All the production processes,from the washing of the materials used, goose feather, the cutting, and the shaping  are performed at home. The feathers are obtained from Nganjuk and Jepara, while the cork as the ballast is imported from Portugal and Spain. 

3.      	Orientation of Sport Industry 
An important aspect of sport industry that can develop industry orientations is an event. A sport event contains 2 important aspects as the factors that influence the flew of the sport industry. The first is how to build sport (internal aspect) and the other is how to sell sport (external aspect). The internal aspect involves society participations and their infrastructure equipments (tools) 
Participating means demonstrating an effort to develop sport quality in order to give sport a higher value. Tools are all involved and helping the participations including organization, infrastructure, training and communication to secure the realization of an event so that the event gives positive image as it is seen from its attarctivity, sportivity, and achievement. 
The second aspect, the external targets, is how to sell sport. It concerns to public aspect, that is the poeple who monitoring the event and joining the sport activities directly or through media and partners. Media helps sport to link with society via relationship cooperative system (right for broadcast, news, etc.). They can be media of electronics, printed media, photography, and information technology as Internet, press, broadcasting. Partner is a group of society, which donate money or fund for sport included: sponsors, government and broadcasting stockholder. The following figure describes sport industry and its supporting factor: 
  Building Sport (Internal)		Participation				   Tools

							   	EVENT

 Seling Sport		              Public 			Partners		Media
   (External)		   (Spectaors General)					   (Broadcars, Press)

Figure 3 : Sport Industry Event and Its supporting factors
       Source : IAAF, (2003). Athletics World Plan, Monaco.
  
4.      Sport Industry Segmentation 
Sport industry segmentation is classified according to its product types. Parks and friends (1998) divide it into three segments: 
a.         	Sport performance 
The product of this segment includes school sport, fitness club, sport camp, proffessional sport, and city sport garden. 
b.         	Sport Production 
Sport production segment makes sport tools and sport infrastructures including basket ball, tennis ball, sport shoes, swimming pool, and so forth. 
c.		Sport Promotion 
  	This segment relates to merchandise such as t-shirt, clothes with logo, printed and electronic media, sport marketing agency, and sport event organizer. 
Beside those three segments, writer assumes that Pitts’ segmentation can be added with one segment that orientates to intangible assets, meritorious service in sport. It corresponds to the definition that involves person and his ideas such as sport consultant, referee, and sport trainer, including event organizer. 
The sport industry segment model developed by Pitts And Miller (1994) is described in the following charts. 
   	 	Sport Industry 
Anything related to sport : Product, goods, service, human, idea.	 	 	

	 	Sport industry segmentation 
according to the type of producer and consumer	 		

	 	 	
Sport Achievement Segment 
(performers and spectators)	 	Sport Product Segment 
Product influencing sport achievement quality	 	  
Sport Promotion Segment 

1. Competitive sport 
    a. Amateur 
    b. Professional 
2. Business sport 
3. Sport Tax 
4. Membership 
5. non profit sport 
6. Sport education 
7. Fitness and sport films	 	1. Outfitting product 
    a. equipments 
    b. Apparel 
2. Product – achievement 
    a. fitness instructor 
    b. medical care 
    c. Sport fascility 
    d. institution and official. 
 	 	1. Promotion product and 
    merchandising. 
2. Event promotion 
3. Media 
4. Sponshorship 
    a. Event 
    b. Team 
    c. Individual 
    d. League /tournament 
    e. joined sponsorship 
5. supporter 
    a. Individual 
    b. Team 
    c. Organization	
Figure 4 : The Sport Industry Segment Model
Sumber :     Pitts B.G., Fielding L.W  and Miller L.K   (1994). Industry Segmentation Theory and The Sport Industry. Developing a Sport Industry Segment Model.  Sport Marketing Quarterly 3. (Morgantown, WV: Fitness Information Technology, Inc). 
  	
Beside that, sport industry segment can be classified based on the scope of the sport in accordance to the object of its activities as it has been ruled by the ordinance of National Sport System as follows: 
a.         	Education sport 
It is sport that is held  as a part of education proscess. 
b.         	Sport for all (Recreative Sport) 
It is sport that can be performed by every one, education unit, club, and sport organization. 
c.         	Competitive sport 
It is sport that is orientated to achievement. 

5.      	Potency of Sport Industry in Globalization Era 
Along with the new world orientation pattern that distinguished by fast acceleration of technology development, especially information technology, and a veriety life style which assimilate, and the world trend, therefore globalization appears as certainty occurred in all life aspect, including economy aspect and sport industry.
Sport as an industrial activity has a big potency to join in globalization situation with the characteristics below: 
a.       	Universality  
The numerous people performing sport are not limited by geographical border, social status, economy status, race, tribes, religion, and physical condition, therefore, where there is poeple, there is sport.  
b.	Entertainment
Sport as a social activity has charming affinity while performed by orientation and intention that according to man’s character as homo ludens. 
This condition makes nearly all media provide special space for sport. Special for sport media, it has double characteristics which is either as news or as entertainment. 
c.       	Image 
It is undoubtable that sport naturally constitutes to human dynamic motion activity that has positive image. Even there are many states in the world using sport as tool for nation unifier, peace, comradeship, character development, and the digging of the national glorious tradition. 
From the above characteristics, it can be imagined that sport really has a big potency to a wholeworld activity. The question is: how to dig this potency as the basis of running sport industry in Indonesia to face Sea Games 2011? 

6.      	Development of Sport Industry Potency in Indonesia 
Point out the various description of sport industry orientation, classification of segmentation, and characteristics of sport activity, sport industry potency in Indonesian has big opportunity to be developed along with the objective condition including the strength, weakness, opportunity, and threats, as analyzed in the following table:  
Table 2.  Sport Industry potency in Indonesia

STRENGTHS 
  
Population as market potency. 
Abundant natural resources as raw material of sport industry, human resources as the most essential motor of sport industry, and regional autonomy encourage some regions choose sport as their regional icon.	
WEAKNESES 
  
Image and  appreciation of sport are still contemn,  
Sporti achievement has not been good,  
Riots in sport events,  
Event's management has not been professional. 
Low skill human resources	

OPPORTUNITIES 
  
Improving life skill, optimizing sport stakeholder's potency,  
, and empowering public economy as the connector among sport , youth, and social activities. 
 	
THREATHS 
  
Electronics technology makes motor activities of the youth decreased,  
Condition of social and economy that has not recovered from multidimentional crisis causes society tends to give attention to primary matters such as economy and job opportunity, therefore sport has not been the main priority to society.	
    	
On the basis of the above analysis, the development of sport industry needs to be planned ripely either by goverment element, society, and all sport stakeholders in Indonesia including sport education teacher institution. 
Here is the macro sight of industry development from world’s sport events: 
1.    	WORLD CUP 1988,  EURO 2000 is witnessed by a billion beholders. 
2.    	World sport industry value in 1999: USD 23 billions. 
3.   	11 corporate partners on Olympic Games 2000:  USD 500 million, Royalty: USD 50–60 million, etc. 
4.   	The income of Australia : USD 4,5 billion.  The number of tourists increases rapidly (News Week, June 2000) 
 5.    	The export of sport instruments, trainer and sport consultant of Australia is about USD 10,5 million per year. 
6.    	The income of Michael Jordan = USD 1 Billion 
7.    	The income of NBA in 1995 = USD 1,2 Billion 
8.    	Alex Ferguson, Phil Jackson, Tiger Woods, Andre Agasi, Louis Figo, and Ronaldo are sport celebrities that become sport industry assets (KBIOR KONI CENTERS). 

7.      	Free market opportunity 
            Todays’ competition climate causes Indonesian people can get sport products that they want, including those which are from other countries, freely. As the result, the highest quality product that offers the lowest price and the best service will lead the market (market leader). These qualified product and services can only be reached by the most efficient firm, which dynamically accesses and applies qualified technology. 
Eventually, those firms, which meet the conditions,  will be able to survive in the tight competition of free market era. In free market, Indonesian products are able to easily come into any countries in the world. The ease of export given by government of Indonesia and the ease of sport products to circulate in international market will be very beneficial to Indonesian firms whose market go abroad. However, if sport industry in Indonesian did not meet the conditions to compete, sport industry in Indonesia would drag and down. Free market competition would be tighter and harder than today’s competition climate. 
In free market, our sport industrialist ought to understand what market requisition or market demand is. There are three (3) categories of requisition. The first is existing requisitions, then hidden requisition, and the other is initiating requisition. Existing market requisition is a market which its customer’s need serviced by existing provider. At least the dimension of this kind of market can be measured. Since sport industry can measure the dimension, so it can identify the buying degree or the product consumption. Later, the hidden requisition is demand that would be expressed when the product offered to customer at the achievable price. Before the product is offered, the degree of requisition is zero, and after it is offered, the requisition reveals. Initiating requisition is demand that would emerge if the recent trend continued. Sport industry offers a product to cover the initiating demand before the trend gives impact. When the trend has an opportunity to reveal, this initiating demand turns into hidden requisition (Keegan, 1995). 
A sport industry must know where it should be. It means that a sport industry must choose whether it should produce certain sport equipments or provide place and sport fascilities, or may be it is more suitable for the industry to hold a sport event to earn profit expected. 
  
CONCLUSION 
Sport industry is a global activity that moves and happens wherever, whenever and by whoever who is willing to dabble and keen on it. Indonesia needs to manage the sport policy nationally both on its structure and on its administration especially that bears with the development of sport  industry.   
Following up the sport industry era in Indonesia, comparative study and experience study to states whose sports industry have been well developed are needed to initiate our sport industry. Partnership among private institution, government and media to develop sport industry through an agreement is also desirable. With the issued of National sport ordinance, we need to think up policy of encouraging sport industry in our country. 
  
RECOMENDATION 
To face Sea Games 2011 in Indonesia, we have to maximize one of our sport industry potency that is shuttlecock, which is the main instrument in badminton, by producing and introducing to other countries, the competitors of Sea Games, and maintaining international standard quality of the product. 
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