Competitiveness Analysis of Surabaya Batik UMKM
Dicky Fajar Maulana
Fakulty of Economics & Business, Narotama University [email protected]
Abstract
This research uses descriptive qualitative research methods. To find out how the strategy in an Umkm / Company requires an in-depth understanding of how the MSME / Company runs its business. So my research uses qualitative methods. Qualitative research is more descriptive in nature and emphasizes the depth of information. In qualitative research, analysis is carried out by describing the interpretation of qualitative assessments of existing data. The data collection techniques that the authors use in conducting this research.
Keywords :
Competitiveness, Marketing Strategies
1. Introduction
1.1. Research Background
UKM or small and medium enterprises are types of businesses that are still small to medium scale, where the profit from these businesses is not more than 200 million. UMKM themselves are driving the economy of our country because they absorb most of the workforce into these types of small and medium enterprises. UMKM itself was ratified by (Undang-Undang Nomor 20 Tahun 2008, 2008). (Irma Pramita Sofia, 2015)concerning Micro, Small and Medium Enterprises UMKM on July 4, 2008, now Indonesia has a more complete definition of UMKM than the definition in the old Law, namely Law no. 5 of 1995 defines only for Small Business.
The city of Surabaya is the capital city of East Java province, of course the development of MUMKM in Surabaya has experienced rapid growth from year to year. This can be seen from the illustration of the data which can be presented in table 1 below.
Table 1. Number of UMKM in the City of Surabaya in 2014-2017
YEARS UMKM
(person)
MICRO BUSINESS AND SMAL
2014 27.926 25.353
2015 28.391 25.147
2016 28.759 26.037
2017 29.507 26.800
According to the Office of Cooperatives and Small and Medium Enterprises called UKM in Surabaya in 2017 which reached 29,507 businesses. These efforts are of course inseparable from the government's role in developing the potential of existing UMKM, one of which is in Surabaya, namely the Surabaya City Trade Office which has a role to develop the potential of existing UMKM. Being a bridge to market the products of its members so that they are able to compete with other countries' products by following the guidance provided by the service for free. Therefore, it is not surprising that the East Java Provincial government tries its best to empower UMKM to be able to become strong players, either in the domestic market and foreign markets. The efforts to empower UMKM carried out by the government are none other than in the framework of increasing the competitiveness of existing UMKM products (ACI Committee 544, 1982) . One way to see the competitiveness of MSME products can be done by using.
2. Literature Review
2.1. Previous ResearchResearch on businesses with a scale of UMKM has been carried out a lot, however, the scale of MSME business is still very interesting to do research, for several reasons, including: MSME businesses have unique business characteristics, MUMKM have different characteristics from medium and large scale businesses, there are several UMKM products that have entered the global market, and others. There have been many studies on medium and large scale businesses conducted using the SWOT analysis model, while the use of SWOT analysis
Page │ 17 in MSME business scale research is still rare and very few. The focus of this research is on the theory of marketing strategies to improve the competitiveness of Surabaya Batik UMKM products (Sakur, 2011).
3. Research
Research on businesses with a scale of UMKM has been carried out a lot, however, the scale of MSME business is still very interesting to do research, for several reasons, including: MSME businesses have unique business characteristics, MUMKM have different characteristics from medium and large scale businesses, there are several UMKM products that have entered the global market, and others. There have been many studies on medium and large scale businesses conducted using the SWOT analysis model, while the use of SWOT analysis in MSME business scale research is still rare and very few. The focus of this research is on the theory of marketing strategies to improve the competitiveness of Surabaya Batik UMKM products.
Development of Natural Color Batik MUMKM in Laweyan Batik Village, Surakarta" Irma Wardani and Tria Rosana Dewi Development of Natural Color Batik MUMKM Kampung Batik Laweyan Surakarta is located in Central Java in the laweyan batik village. The results of the study stated that based on the results of the interview, the identification of internal factors of natural color batik MUMKM were the strength factors: the presence of the Clean Batik Intiative (CBI) label, available raw materials, environmentally friendly, CBI training, while the weakness factors consisted of: limited human resources, high selling prices. , export opportunities, no production all the time, some colors don't blend with the fabric, old coloring. Identification of external factors, namely opportunities consisting of export opportunities, interest of foreign tourists, good relations with suppliers, government support, while the threat factors consist of (Agni Haryanto, 2021) :
Lack of promotion 1.
Close position of competitors 2.
Middle to upper market segment 3.
Low consumer interest 4.
Technological innovation 5.
Meanwhile, (Irma Wardani dan Tria Rosana Dewi, 2018) the strategy priority results that can be applied are product development. The right idea, the right product and the right target by diversifying products (creating products other than batik cloth) with natural dyes, developing batik motifs with designs that are trending according to market tastes, and innovating science and technology related to coloring techniques on natural colored batik.
3.1. Research Method
This research uses descriptive qualitative research methods. Descriptive research is a research method that seeks to describe an object in accordance with the circumstances or what it is.
3.2. Data Sources
To find out how the strategy in a company umkm requires a deep understanding of how the MSME or company runs its business. So my research uses qualitative methods. Qualitative research is more descriptive in nature and emphasizes the depth of information. In qualitative research, analysis is carried out by providing interpretation of qualitative assessments of existing data (Siti Pondia, 2018).
3.3. Types, Sources and Data Collection Techniques
The data collection techniques that the authors use in conducting this research are as follows:
Field research (field work research) 1.
Namely, direct data collection which becomes the object of research to take a close look at the company, using the following methods:
1) Observation (observation) 2) Interview (interview) 3) Questionnaire
Library research (library research) 2.
Namely collecting secondary data or data obtained from recorded data, either in the form of reports or previous research results.
3.3 in This Study, The Authors Used The Following Techniques and Data Analysis SWOT analysis
1.
SWOT analysis is an analysis in strategic management which is based on finding out the opportunities, threats, strengths and weaknesses of the company through observation analysis of the company's internal and external environment (Rangkuti, 2001).
Overview of the EFAS AND IFAS SWOT Analysis 2.
To make a plan we must evaluate the external factors as well as the internal factors that exist from umkm/organization.
Analisis Lingkungan Internal 3.
Strength (strength), is a situation and positive internal capabilities that allow the organization to have a strategic advantage in achieving umkm / organizational goals.
Weakness (weakness), is a situation and internal inability that results in the organization unable to achieve its goals or as a condition that places the organization at a disadvantage and is not competitive.
External Environmental Analysis, including:
4.
Oppurtunities (opportunities), are situations and external factors that help the organization achieve or even exceed the achievement of its goals.
Threat (challenges), are external factors that cause the organization to be unable to achieve its goals.
5.
Summary analysis 6.
Used to evaluate the company's external factors. Company external data is collected to analyze matters relating to economic, social, cultural, demographic, political, governmental and other external data, which in turn affect opportunities and threats ( threats) for the company. In cell Opportunities (O), several opportunities faced by the company are formulated. This should consider industrial deregulation as one of the strategic factors. External Strategy Factors Matrix
Before creating an external strategy factor matrix, we need to know the External Strategy Factor (EFAS) first. The following are ways of determining External Strategy Factors:
Page │ 19
4. Research Result
Tabel 2. Research Result
Internal Strategy Factors External Strategy Factors Power
Products in the art sector Can be used at all ages
Opportunity
Raw materials are easy to mee
Faktor Internal
Strength (S) A. Price b. Product quality c. Has artistic value
(Motif) d. Service
Weakness (W)
Old making (especially written batik) Promotion is still lacking
Limited capital Lack of experts
There are not many product variations Opportunity
(O) Keep innovating
onbatik products
Always Follow Market Trends
SO strategy a.Increase production
capacity such as fabrics and expand
marketing.
b. Expanding marketing by entrusting more batik products to shops and
ordering c.Creating new innovations in order to
compete with other large companies
Strategy WO
a. Increase production efficiency to process efficiently and effectively, namely in accordance with batik production standards. So that customers
can continue to buy and order batik at Umkm Al-bujabar
b. Improve the marketing strategy of batik sales in various ways, such as marketing
through social media, participating in cultural exhibitions, directing it to buyers
in the field and through news (newspapers) Threat T
Many competitors
and other competitors
Many experts imitate printed batik which
is almost the same as
written batik
ST strategy a. Maintain good relationships with suppliers by regularly
subscribing to these suppliers and increasing production so that requests can be
met.
b. Improve product quality, with product innovation, to satisfy
customers.
WT strategy
a.Innovating products and promoting through social media in order to win in
the competition.
From the SWOT analysis table above : A. Strength (S)
a. Products in the field of clothing and art
Fabrics, wax dyes (batik wax), etc. are raw materials that are easy to find b. Products in the art sector
Batik clothing that is easy to find in Surabaya and Indonesia to preserve Indonesian culture. Batik clothes are easy to find and the products offered seem exclusive (luxurious)
c. Can be used by all ages
For all ages including toddlers, children, adolescents and older parents can wear batik to preserve Indonesian culture and introduce it to tourists. Or tourists
B. Weaknesses
The process of making hand-written batik takes a very long time because the motive is according to customer demand and is very difficult to make, you have to be careful
Promotion is still lacking a. Lack of promoting
Lack of experts
The lack of experts really affects the ordering factor b. There are not many product variations
Product variation really depends on the interest of the customer who orders it due to the lack of working capital to increase product variety
C. Limited Capital
a. Capital is very limited for promotion and recruiting experts b. Opportunities
c. Continue to make innovations in batik
So that batik is very popular among customers and can introduce batik to other Asian countries through the countries that exist in the world. Improve the quality of our batik products by choosing suitable means. Batik clothing has been widely used by agencies for official clothing and is better known by the surrounding community.
D. Threat (T)
a. Number of competitors and other competitors The market share for batik clothing is very high. Large companies engaged in clothing (clothing) under the umbrella of Umkm, have a large enough market share, so it is quite difficult to find consumers. And it is possible for these big companies to produce new variants
b. Many experts imitate printed batik which is almost the same as hand-drawn batik
c. Large companies that employ experts can benefit from making printed batik which is almost the same as hand-drawn batik. And it can damage the image of written batik for written batik craftsmen in Surabaya umkm, especially Al-bujabar umkm and will match the turnover of written batik orders for umkm art workers
E. Strategy So
a. Increase the capacity of products, such as fabrics and marketing
b. Expanding marketing by entrusting more batik products to shops and ordering c. Making more new innovations in order to compete with other large companies
1) Strategy (WO)
a. Increase production efficiency to process efficiently and effectively, namely in accordance with batik production standards. So that customers can continue to buy and order batik at Umkm al- bujabar
b. Improve batik marketing strategies in various ways, such as marketing through social media, participating in cultural exhibitions, directing them to buyers in the field and marketing through news (newspapers)
2) Strategy (ST)
a. Maintain good relations with suppliers by regularly subscribing to these suppliers and increasing production so that requests can be met.
b. Improve product quality, with product variants according to customer wishes, to satisfy customers c. WT strategy
Increase product variants and promote them on social media to win in the following competitions The following is the calculation of Efas and IFAS through SWOT analysis
Page │ 21 Table 3. The Calculation of Efas and IFAS Through SWOT Analysis
Strategic Significant
Weight Rating Score
Factors Level
Strenght
Price 3 0,27 5 1,36
Product quality 3 0,27 4 1,09
Motive 3 0,27 4 1,09
Service 2 0,18 3 0,55
Total 11 1,00 4,09
Strategic Significant
Weight Rating Score
Faktor Level
Weakness
Limited Capital 1 0,20 1 0,20
Lack of Experts 1 0,20 1 0,20
Promotion is still lacking 2 0,40 1 0,40
There are not many product variations 1 0,20 2 0,40
Total 5 1,00 1,20
Strategic Significant
Weight Rating Score
Factors Level
Opportunity Making innovations in batik products 1 0,50 5 2,50
Always follow market trends 1 0,50 5 2,50
Total 2 1,00 5,00
Strategic Significant
Weight Rating Score
Factors Level
Treats
many competitors and other competitors 2 0,50 2 1,00
Many expert imitate printed batik which is almost the
same as written batik 2 0,50 2 1,00
Total 4 1,00 2,00
4.1. SWOT Analysis Diagram of Al-bujabar Batik UMKM
From the analysis on the table of internal and external factors above, it shows that the value on each score can be detailed as follows
Strength Factor (Strength): 4.09 1.
Weakness Factor (Weaknes): 1.20 2.
Opportunities: 5.00 3.
Threats factor: 2.00 4.
Based on the calculation above the weaknes value with the difference (+) 2.89 and the opportunity value above and threat has a difference (+) 3.00 from the identification results on these factors can be illustrated in the following SWOT diagram:
Opportunity
III, Turnaround 1 Growth Strategy 2 Strategy (2.89:3.00)
3
3 2 1
II. Diversivication IV. Defensive Strategy
Strategy
Figure 1. SWOT Analysis Diagram of Al-bujabar Batik UMKM
5. Conclusion
A key support is also supported by good internal strength, such as human resource support, good 1.
management support, good product quality, satisfying service, and quite competitive product prices.
By doing both analyzes, namely internal analysis and external analysis, batik MUMKM must perform a 2.
SWOT analysis.
The composing tool for compiling strategic factors is the SWOT matrix 3.
There are four main components, namely efficiency, innovation, quality and response to customers that 4.
determine competitive advantage
6. Advice
To take advantage of the tendency of comparative advantage, each institution must use all its strengths 1.
and minimize weaknesses in order to seize opportunities and overcome future threats.
To achieve success in the design of innovation, there should be an effort made by a leader, the leaders 2.
should have the ability to manage the UMKM business itself
With a SWOT analysis it is hoped that it can provide an overview of the stages of formulating goals 3.
starting with the vision and mission that produce values. The vision, mission and values are simultaneously analyzed by considering the environmental factors that influence, both the internal environment, namely the environment within the organization and the external environment.
With this hopefully it can increase our knowledge about SWOT analysis in designing an innovation, 4.
and it is hoped that someone will research it for further research.
References
ACI Committee 544. (1982). State of the art report on fiber reinforced concrete. Farmington Hills.
Agni Haryanto. (2021). UMKM : Memahami Pengertian dan Ciri-Cirinya. Jojonomic.
https://www.jojonomic.com/blog/umkm/
Irma Pramita Sofia. (2015). Konstruksi Model Kewirausahaan Sosial (Social Entrepreneurship) Sebagai Gagasan Inovasi Sosial Bagi Pembangunan Perekonomian | Sofia | WIDYAKALA: JOURNAL OF PEMBANGUNAN JAYA UNIVERSITY. LP2M (Lembaga Dan Pengabdian Masyarakat).
http://ojs.upj.ac.id/index.php/journal_widya/article/view/7
Irma Wardani dan Tria Rosana Dewi. (2018). Pengembangan UMKM Batik Warna Alam Kampung Batik Laweyan Surakarta. Uniba.
Rangkuti, F. (2001). Analisis SWOT Teknik Membedah Kasus Bisnis. gramedia.
Sakur. (2011). Kajian Faktor-Faktor yang Mendukung Pengembangan Usaha Mikro Kecil dan Menengah: Studi Kasus di Kota Surakarta Supporting Factors of Usaha Mikro Kecil Dan Menengah (UMKM) Development:
A Cases Study In Surakarta City.
Siti Pondia. (2018). Strategi Bisnis Usaha Mikro Kecil dan Menengah (UMKM). Fakultas Ekonomi Dan Bisnis Islam Institut Agama Islam Negeri Purwokerto. http://repository.iainpurwokerto.ac.id/4150/2/SITI PONDIA_STRATEGI BISNIS USAHA MIKRO KECIL DAN MENENGAH %28UMKM%29 %28Studi pada Usaha Kecil Grubi L.pdf
Undang-Undang Nomor 20 Tahun 2008. (2008). Undang-Undang Nomor 20 Tahun 2008 Tentang Usaha Mikro, Kecil, dan Menengah. Otoritas Jasa Keuangan . https://www.ojk.go.id/sustainable- finance/id/peraturan/undang-undang/Pages/Undang-Undang-Republik-Indonesia-Nomor-20-Tahun-2008- Tentang-Usaha-Mikro,-Kecil,-dan-Menengah.aspx
Strenght Weakness
