Business Development Strategy for Keripik Tempe Sagu Al-Madinah Using SWOT Analysis Method

Abstract

The UMKM (Micro, Small, and Medium Enterprise) Keripik Tempe Sagu Al-Madinah is categorized as a micro-business under Bank Indonesia regulations, with net assets below 50 million rupiah and annual turnover under 300 million rupiah. Despite its ongoing operations, the business faces challenges such as limited capital, reliance on traditional production methods, and low human resource skills, resulting in inconsistent product quality and suboptimal production capacity. This study aims to develop sustainable business strategies for the UMKM through SWOT analysis. The SWOT analysis identifies several strengths, including a broad market potential, low labor costs due to family-based employment, and the appeal of local, traditional products. Additionally, the business has initiated basic online marketing, albeit with limited effectiveness. However, its weaknesses include unskilled and unmotivated workers, the lack of separate financial records for business and personal finances, and reliance on traditional production processes that hinder quality consistency. Opportunities exist in expanding to modern markets, leveraging trends in healthy traditional snacks, and accessing government support programs for UMKM development. Conversely, threats include stiff competition, stringent standards for entry into modern retail markets, and technologically advanced competitors. To address these issues, the recommended strategies include improving human resource skills through training, modernizing production equipment for better quality and efficiency, utilizing e-commerce marketplaces to enhance online marketing, and implementing proper financial management practices. By adopting these strategies, Keripik Tempe Sagu Al-Madinah can increase its competitiveness and expand its market reach locally and digitally.