The strategy for improving the competitiveness of SMEs apple chips in Malang Raya by using the concept of the house model

Abstract

Apple chips SMEs in Malang Raya play an important role in national economic growth. The present study was aimed to analyze the strengths, weaknesses, opportunities with threats, and determine the strategy of increasing the competitiveness of apple chips SMEs in Malang Raya. The research location was in Malang Raya area consists of Malang Regency, Malang City, and Batu City. Data collection was obtained from thirty-one respondents who were owners of apple chips SMEs in Malang Raya. The data analysis technique used in this study was a SWOT analysis to analyze the strengths, weaknesses, opportunities and threats on the house model concept to determine the strategy to increase the competitiveness of apple chip SMEs in Malang Raya. The SWOT analysis showed that the business position of the apple chip SMEs are in the strength-opportunity strategy quadrant which includes, improving the quality of the apple chips, adding variations of apple chips products, extending the validity period of the home industry production permit and halal certificate if it has expired, as well as increasing the number of apple chips production. The results of the main performance index weigh for the pillar positions of the house model on the strategy of increasing competitiveness for product variables at 0.726, human resource improvement variables at 0.198, and marketing institutional variables at 0.076.