ANALYSIS OF THE BEST ALTERNATIVE STRATEGY TO DEVELOP SMALL MEDIUM ENTERPRISES IN SURABAYA

Abstract

The first goal of the United Nations’ 17 Sustainable Development Goals in the 2030 Agenda is to end poverty in all its forms everywhere, and the poverty rate in Indonesia was 9.66% in September 2018. The poverty issue in Indonesia is not merely about the difficulty for the people to fulfill their food needs, but also about the lack of opportunities for the poor people to try. Micro-Small-Medium-Enterprises (MSMEs) is an instrument that the government can use to provide the opportunities for people to build their business and improve the economy. Therefore, the government had established 43 culinary center that are able to facilitate 1458 tenants in Surabaya, to support the development of MSMEs in Surabaya. The purpose of this research is to generate the best alternative strategy to develop the MSMEs in Surabaya by using Sentra Wisata Kuliner Dukuh Menanggal as the research object, using marketing mix, diffusion of innovation, Porter’s five forces model, SWOT analysis, Quantitative Strategic Planning Matrix (QSPM), and blue ocean strategy. This study uses a qualitative approach to generate the strategies to develop the MSMEs through interview with eight tenant owners, and an additional questionnaire to the eight owners and twenty customers of the culinary center to get the supporting quantitative data for the marketing mix, diffusion of innovation, and Porter’s five forces model. The results showed that the best strategy from marketing mix is to create a bundle-pricing promotion; from diffusion of innovation is to join online food delivery services, such as GrabFood and Go-Food; from Porter’s five forces model is to initiate a membership promotion for the customer; from SWOT and QSPM is to organize a meetings and gathering packages; and from the blue ocean strategy is to create an integrated management system. Thus, among all theories, the chosen best strategy is creating an integrated management system as the strong foundation before implementing other strategies in Sentra Wisata Kuliner Dukuh Menanggal