SMEs Development Strategy for Competitive and Sustainable Typical Local Snacks of Banten Province

Abstract

Small Medium Enterprises (SMEs) for snacks in Indonesia currently has a good growth rate on one hand; but on the other hand, its level of competition is also quite high. Growth in sales volume of the Indonesian snack industry, both in modern and traditional markets in 2012, was recorded at 10-15 percent far beyond the growth of other manufacturing industries. However, the level of competition in the snack industry is also relatively high. Business people in the snacks sector do not only compete with fellow local business people but also with imported products, both legal and illegal. Currently, Banten Province is indeed not known as a culinary destination with a variety of distinctively local foods. The growth of the food industry in Banten Province is not as rapid as other manufacturing industries. However, in Banten, some types of food produced in small and medium scales (SMEs) are also known. Therefore, efforts to develop and empower typical local snack SMEs in Banten Province needs to be conducted to be able to increase its competitiveness in facing the globalization era and the ASEAN free market in 2015. The purpose of this reseach is to map the performance profile of Banten typical local snack SMEs and to provide recommendation on SME development strategies for competitive and sustainable Banten typical local snacks. The research method used combines the descriptive research method, IPA (Importance Performance Analysis), and SWOT analysis. The performance level measurement for Banten typical local snack SMEs is based on stakeholder perceptions on the condition of the existing 16 attributes compared to the perception on the development expectation of each of these attributes. Results of SWOT matrix mapping puts the products of Banten typical local snack SMEs in quadran II. The strategy prioritized is the quality attribute maintenance strategy for superior products, as well as product diversification to expand market share, competitiveness, and sustainability of Banten typical local snack SME products.