Application of Analytical Hierarchy Process (AHP) in Determining the Development Strategy of Tempeh Processed Product

Abstract

This study aims to determine the criteria and best strategies for developing new products processed tempeh in Surakarta City. The research design used is descriptive-analytical by basing data from key informants through in-depth interviews combined with focus group discussions. The collected data is compiled, analyzed, and discussed to illustrate the reality of tempeh-processed SMEs in the field. Aggregation techniques for making conclusions from diverse information using source triangulation. While analytical tools determine strategic priorities using the analytical hierarchy process (AHP). The study results obtained six criteria for developing new products for processed tempeh. These criteria are market demand, risk of production failure, tempeh processed technology that has been mastered, waste handling, absorbing labor, and profits. In contrast, the alternative strategies that are successfully formulated based on the SWOT matrix consist of three alternative strategies: product differentiation, improving product quality and packaging, and the legality of products supported by digital marketing. Based on AHP obtained, the most important criterion is profit. In contrast, the priority strategy for developing processed tempeh products is to improve the product's quality and packaging. This study provides helpful information in solving the problem of SMEs in determining the priorities of various alternatives faced by SMEs. AHP-based analysis can overcome the weakness of SMEs who do not orderly document quantitative data because AHP can process both quantitative and qualitative data