Development strategy of small and medium food industry in Tangerang City with SWOT and AHP methods

Abstract

The study was conducted to formulate a strategy for developing SMEs Food in the City of Tangerang. The SWOT Matrix calculation results in the position of Tangerang City’s SMEs Food being in quadrant II so that the positioning must be carried out in an optimal development strategy. There are four possible alternatives for the development strategy of the City SMEs Food, namely: Improvement of the quality of production results in order to make products competitive, Support of available raw materials to continue to innovate products and to make products that are competitive, Improvement a partnership between suppliers, customers and competitors by ensuring the availability of human resources through government support, Increasing production development and creating products using appropriate technology. These four strategies will be considered using the AHP method so as to determine the best decision. Based on the weighted pair wise comparisons, the priority value of each strategy is 0.376 (S1); 0.128 (S2); 0.147 (S3) and 0.349 (S4). The biggest weight value is found in the S1 strategy of 0.376. So that the development strategy that becomes the main priority based on SWOT indicators and AHP weighting is the improvement of the quality of production results in order to make a competitive product.