Proposed Business Strategy and Optimization in the Creative Business Industry (Case Study: CV. Natural House)

Abstract

Creative business industry and along with the digital transformation in Indonesia needs to be explored and expanded further to enable Small Medium Entreprises (SMEs) for it to grow exponentially and effectively since currently, Indonesia is going onto the digital era. Especially after the pandemic, many SMEs in Indonesia have been affected. CV. Natural House is no exception, as transformation and changes are currently taking place in their business system. Natural House is a company that was first established in Yogyakarta operating in the creative business sector and specializing in creative furniture and home decor using recycled materials and upcycle concepts. The drastic changes in the industry have caused the company to have difficulty in several management areas. This research aims to identify those difficulties in the areas that Natural House is currently facing using several analyses for the internal and external ones, such as Root Cause Analysis, Internal Resources Analysis, Value Chain Analysis, Porter’s Five Analysis, McKinsey 7S Model, and 7P Marketing Mix. The purpose of conducting the analysis using the models or framework that were mentioned and finding the problems is to find solutions and business strategies that could be implemented in the company. The findings suggest that Natural House is lacking, not only in its human resources and capital areas but also in its marketing management. Furthermore, Natural House is not considered an ideal company’s structure as of right now. Because of that, five solutions were proposed by the author to Natural House, namely hiring new employees and talent acquisition, skill training and mentoring employees, marketing optimization through the global marketplace, improving their offline platforms such as joining creative exhibitions/fairs and revamping their showroom or office area, the last is apply scheduled evaluation meeting. By this means, this research offered to achieve business solutions and objectives that Natural House might be considered and found useful for further research and business development.