DEVELOPMENT STRATEGIES OF MICRO BUSINESS FOR

AEROCITY OPPORTUNITIES IN MAJALENGKA DISTRICT

Ellen Rusliati
[email protected]
Mulyaningrum
Mujibah A. Sufyani
Fakultas Ekonomi dan Bisnis Universitas Pasundan
Abstract
The purpose of this study was to examine the development of micro business potentials to
utilize aerocity opportunities in Majalengka District that would change the livelihood and culture
of the community. The local potentials in Majalengka were agriculture and natural resource-
based tourism. Processing of local raw materials into products that fit the needs of the
community would be able to increase the income of the population. The research method used
was descriptive qualitative. The results showed the right strategy was market penetration and
new product development. Efforts to be taken to support the strategy included (1) Improving the
quality of human resources in services and trade, (2) Innovation of new local based products, (3)
Promotion of information technology utilization, (4) Increasing tourism infrastructure involving
micro businessmen/women, (5) Business assistance, market survey, and management training
involve Higher Education, (6) BUM Desa facilitation of machinery, storage, capital development,
product marketing, (8) Producing products according to agricultural commodities.
Keywords: micro business, potencies, opportunities, Majalengka

INTRODUCTION
Minister of Cooperatives and SME, said that the number of entrepreneurs in Indonesia is
about 1.65% of the population. Singapore 7%, Malaysia 5% and Thailand 4% (Republika,
12/3/2015). If the number of entrepreneurs increases, it will also boost the economy of the
country, with increasing employment, which will ultimately be able to improve the quality of
community welfare. If the efforts only focus on cities, it will increase people’s welfare, but
uneven and gini ratio will not decrease from 41%. Therefore, it is necessary to develop
entrepreneurship in rural areas.
Majalengka is a district in West Java whose geographical conditions are divided into 3
zones: (1) 40.03% mountains, (2) 31.27% corrugated/hilly, and (3) 28.70% lowlands of the total
regency area. It also consists of 26 sub-districts and 330 villages. This condition allows the
potential growth of local specific natural resources. As a lowland area supported by its strategic
position, Majalengka Regency is very suitable to be developed into a business and industrial city,
therefore the Government of West Java Province establishes Majalengka as a priority in
infrastructure development that is Kertajati International Airport (www.bps.go.id Data
Pembangunan Kabupaten Majalengka, 2015). With the concept of developing Kertajati as
Aerocity, it will make Majalengka as a center for various supporting industries, as well as a
center of economic growth in the eastern region of West Java Province.
 In detail, the potential of Majalengka District has been determined by Perda No. 11
Tahun 2011 on Spatial Planning in 2011 - 2031 as: (1) Cultivation areas consisting of production
forests, agriculture, fisheries, mining, industry, tourism, settlements and other designations, (2)
Center of urban and rural activities, (3) Strategic area of West Java and District.
Majalengka District will become a very strategic area for new economic growth for the
eastern region of West Java Province before the opening of Kertajati International Airport.
Therefore, the people should prepare to deal with competitive market development situations,
changes in livelihoods and culture. This should be prepared for them to anticipate for
modernization. Micro businessmen need to be invited to innovate and pay attention to market
demands, so that agricultural products can be absorbed by the market and provide added value.
Most of Majalengka District’s people are farmers, so rural development remains a
priority, including human resources and agribusiness-based economic development and
agricultural technology implementation in order to increase production and productivity as an
effort to strengthen food security and fulfillment of industrial raw materials.
The result of the preliminary observation revealed that the people of Majalengka District
generally use agricultural products only for their own consumption and the rest are sold directly
to the market. There is no crop processing process from local agricultural products, so the price
fallson harvest time. As a result, even though farmers live well, they are not really better than
before. From the preliminary data, it is found that the public interest for entrepreneurship is quite
high, but it has not been supported by the application of appropriate technology and adequate
management system, therefore the potential has not added significant value. Some communities
have already processed their crops manually and very simply. As a result, the processed products
of these agricultural products do not last long, and do not have high selling value. Their products
are only sold in the local market, so the profit is not optimal. Eventually their entrepreneurial
spirit is channeled to sell foreign products. Some people who have the potential to develop
entrepreneurship even move to other cities, so the local potential left dormant and managed
perfunctory.
Micro Enterprise is a productive business owned by individual and/or individual business
entity with asset criteria of ≤ Rp 50 million and turnover of ≤ Rp 300 million, based on Law no.
20 year 2008 on Micro, Small, Medium Enterprise (www.bi.go.id). Micro enterprises are often
confronted to functional management constraints. Cooperation between suppliers, entrepreneurs,
and output markets is needed to ensure the availability of raw materials and markets. The ability
of micro enterprises to produce local processed agricultural products that vary according to
market demand will demand diversification and product differentiation. This research will be
conducted in order to improve the competitiveness and the effectiveness of production and
marketing for micro businesses in Majalengka District to improve welfare.
The low capability to diversify and differentiate local processed products according to
market demand of the community in Majalengka District is caused by the lack of information
about the development of needs of the current consumers, so the local farmers' products do not
have the ability to compete. As a result, marketing activities become ineffective. Besides, it also
requires a synergy between people in various matters related to product marketing management
to increase sales. This research is expected to produce a micro business development strategy, so
that the potential development of local agricultural products can be utilized more optimal, and
well sold and effective in producing and marketing generate profits.
 LITERATURE REVIEW
Specific objectives of the study consist of: (a) Identifying potential local agricultural
products using Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis to identify local
potentials that can be developed to meet market needs, obtaining available opportunities, and
building competitiveness and penetrating internal constraints and competition, (b) Analyzing
functional management that includes production management, product marketing management,
financial system, and human resource management.
From the background of the problem, we obtained information on the condition of the
society and micro businessmen in Majalengka District generally have the following
characteristics: (1) Lack in product diversification and differentiation in accordance with market
demand, (2) Lack in the possession of concept of integrated production strategy and tactics and
market in order to have an advantage to compete, (3) Having a strong entrepreneurial spirit, but
less developed optimally
The process of formulating alternative strategies of Majalengka District development is
done through a series of analysis that cover several stages beginning with descriptive analysis by
identifying vision, mission and objectives. This identification is important to know further about
the targets to be achieved. Internal analysis is done in the fields of management, marketing,
finance, production/operation, human resources, and behavior change, while external analysis is
done by considering Political, Economic, Socio-Cultural Demography, Technology factor.
The identification results will further be incorporated into the framework of strategy
formulation consisting of (David, 2009 translated by Dono Sunardi): (1) the input stage which is
the stage of summarizing the basic information or input required in formulating the strategy. At
this stage External Factors Evaluation (EFE) and Internal Factors Evaluation (IFE) matrix are
generated. This analysis is conducted to identify various external-internal factors that have
significant influence in achieving the predetermined objectives, (2) the matching stage, which is
the focusing stage and generating the appropriate strategy alternatives company condition. At
this stage, IE matrix is produced which is the result of internal-external environment analysis that
provides an overview of the company's position, as well as strategies that must be implemented
in maintaining its position. Then, the SWOT (Strengths Weaknesses Opportunities and Threats)
matrix provides a combination of strategies that can be done based on identification of the threats
and weaknesses, (3) Alternative micro-enterprise development strategy, which is a recommended
strategy to be a strategy that can be a guide for Majalengka Regency.
Internal factor analysis include 7 factors (management, production and operation,
behavior change, finance, human resources, management information system, and marketing)
and external factors cover include 5 factors (economic, social culture, demography and
environment, technology and competitive) qualitatively arranged in the form of internal and
external factor matrix and SWOT matrix, which subsequently resulted in an alternative micro-
enterprise development strategy. The framework of this study can be seen in Figure 1.

METHODS
The method used in this research were survey and observation method in several
locations in Majalengka regency. We could dissect, discuss, and recognize the problems, and got
justification on the condition and practices that were in progress. In addition, evaluation and
comparison of what people could do in handling similar situations or problems could also be
used in future plans and decision-making. To apply survey research method in operational, hence
it required a research design which is suitable to the condition of the depth the research was
conducted. The research design focused on the micro-enterprise including the following
processes: (a) Identification and diagnosis of research problems based on preliminary research
results, (b) Determination of conceptual framework for research problems and relationships with
previous researches, (c) Formulating research problems including making specifications of
objectives, scope, (d) Developing a framework, (e) Selecting and defining variable
measurements, (f) Preparing tools and techniques for data collection, (g) Performing editing and
processing data, (h) ) Analyzing the data qualitatively, (i) Reporting of research results, including
research process, discussion and interpretation of data, generalization, and suggest some
suggestions and future research work.
RESULTS
Based on Majalengka map, we can identify zone of area and sub-district, there are eight
sub districts in mountain zone, twelve sub districts in corrugated/hilly zone, and six lowland zone
(Table 1). Mountainous and hilly areas have abundant natural resource potential such as
vegetables, fruits, food as well as tourism sector. The flat lowland areas were supported by
strategic positions as the connecting areas of 4 districts: Sumedang, Indramayu, Cirebon and
Kuningan, potentially developed into business and industrial zones, so it was natural that the
West Java Provincial Government saw Majalengka as one of the priorities of infrastructure
development to support the acceleration of development including the mega project of West Java
International Airport development that will be built in Kertajati sub-district, as well as centers for
the relocation of various industries and its concept which was integrated with various facilities
such as residential, university, hospital, shopping center, bussines center, resort, recreation.
Majalengka Regency GRDP (Gross Regional Domestic Product) contribution majorly
from agriculture sector that reached 26,85% far above West Java. Contribution of the processing
industry sector in Majalengka Regency is much lower than West Java Province (Table 2). Perda
No. 11 Tahun 2011 Local Regulation no. 11 Year 2011 on Majalengka Regional Spatial Plan
2011-2031 stated that this objective condition would encourage the development acceleration
significantly, so Majalengka was demanded to develop, synchronize and synergize to the
acceleration of development more comprehensively covering human resource development,
infrastructure, economy based on agribusiness as well as small and medium industries and
various other fields including the field of government for the creation of a good bureaucratic
system, professional, clean and accountable. To improve public services based on minimum
service standards as amission to achieve public trust, both government and society must walk
hand in hand in order to actualize the vision of Religious, Advanced and Prosperous Majalengka
Regency.
West Java International Airport and Kertajati Aerocity were built in Majalengka District
in the north, precisely in Kertajati Sub District. The airport would be built in 5 villages namely,
Kertajati Village, Kertasari Village, Bantarjati Village, Sukakerta Village, and Sukamulya
Village. The construction of the two mega projects caused the demand for land for non-
agricultural activities to increase. Based on the Regional Spatial Plan of Majalengka Regency,
the land needed for the two mega projects was 5,000 Ha, for the airport 1,800 Ha and the
aerocity 3,200 ha. Regional designation for the development was the airport and aerocity area in
Kertajati sub-district, residential and service area in Jatitujuh Subdistrict, and for industrial area
in Ligung Subdistrict. The region that experienced significant development was Jatitujuh
Subdistrict with its development pattern following government policy that were area designation,
distance, accessibility, and land use.
Ligung and Jatitujuh areas are located in the lowlands, while the people in this area
cultivated rice, onions and other agricultural commodities as their livelihood. The construction of
the international airport without transit in the area will be an excellent opportunity if the
landscape of the area can be improved. The existing agricultural sector is not only profitable in
terms of economy but also able to be an agrotourism place in the lowlands. Currently
agrotourism is only on the plateau with the main attraction of fruits and flowers. However,
tourists are always concerned about the hot weather that can actually be overcome by planting
trees with shade canopy and beautiful flowering. Agrotourism in the lowlands with rice
commodities, for example, or onions will be one of the most creative tourist attractions with the
help of professional landscaping experts.
Kadipaten, Kasokandel, and Sumberjaya areas were the most frequently passed by
vehicles to Cirebon and Central Java. Majalengka government can revitalize the existing
terminal in Kadipaten as Rest Area, a shopping center, or souvenir shop, and also restaurant that
could also provide typical culinary and icon of Majalengka. Therefore, Majalengka can also
increase the income of the community around Kadipaten.
Panyingkiran, Kasokandel, Jatiwangi, Palasah, and Leuwimunding areas were quite
extensive for the development of several sectors. For example, Panyingkiran is a strategic area
whose longitudinal maps is along the highway. The sectors that can be developed in this area are
shopping, recreation and electronic centers. Panyingkiran is the meeting point between north and
south Majalengka, and also is close to the city as well. Meanwhile Jatiwangi is the largest tile
manufacturer in Majalengka which can be developed into industrial areas that produce various
products.
The area of Majalengka, Cigasong, Sukahaji, Sindang, Rajagaluh, Bantarujeg and
Sindangwangi were areas close to the city center and city park. It is also the symboland iconthat
reflects the city itself. These areas needed to be displayed especially the city park. In such big
cities, citypark is a must-icon. Therefore, Majalengka City Square can be used to be a
comfortable park for recreation or hanging around in. Icon in Majalengka city can also be added
because it can leave and bring memories to visitors. In addition to the prohibition of public
transportation and the limitation of private vehicles passing by, Jalan Ahmad Yani is also one of
the attractions in Majalengka, away from traffic and crowds in the administrative area.
The area of Maja, Banjaran, Cikijing, Cingambul, Malausma and Talaga are highland
areas in Majalengka. These areas are very suitable for the development of integrated agriculture
such as fishery, livestock and forestry which can be used as agro integrated tourism. Agriculture
can also develop various popular fruits such as strawberry and grapes that can be used as fruit
garden, or dairy cattle tour, horse tour, fishing venues and outbound tours surrounded by lush
forests. These will be a very interesting tourist attraction, by the help of landscape architecture
experts.
 Argapura and Lemahsugih areas are highland. These areas are a buffer to maintain the
balance of nature. Protected forests in this area were very useful for microclimate. Meanwhile,
the agricultural sector was still well developed in this area, but farmers must understand which
sites are feasible and not feasible for planting. Training for terracing system creation is needed
for farmers to prevent the occurrence of landslides in hilly areas (Ayu Maimun, 2016).
The population of Majalengka Regency in 2015 based on Population Projection 2010-
2020 was 1,182,019: 590,690 of them are male and the rest 591,419 are female. The number of
open unemployed is 4.01% or 24,420 people (male 18,407 and female 5,883). Majalengka
community, including the labor force and people who never had any education reaches 14.68%,
people whowere graduated from primary school are 44.96%, graduated from junior high
education 18.84%, graduated from secondary education 15.32% and diploma and bachelor
graduate 6.23% (Kabupaten Majalengka Dalam Angka, 2016).
The main occupations of the population were agriculture, forestry, hunting, and fisheries.
It reachess 28.69%. Meanwhile, trade, retail, restaurant and hotel reaches 26.83% and processing
industries reach 17.80%. Majalengka community were majorly farmers, agricultural sector
contribution to GRDP formation reaches 32.85% with economic value reaches Rp 353.7 billion.
Agriculture in Majalengka was relatively fertile. The area of land used for rice fields is about
41.55% or 50,035 ha, using 72,10% irrigation and the rest of it is rainfed (Kabupaten
Majalengka Dalam Angka, 2016). Total productivity of rice in 2015 reached 664,993 tons,
decreased 2.89% compared to 2014, as a result of the decrease of planting area. Dry land of
70,389 Ha is used mostly for garden, state forest, and yard and building. The biggest total output
of rice came from Kertajati and Ligung sub districts.
Majalengka Regency had a very enchanting nature, as evidenced by various tourist
attractions found with a very beautiful scenery. Most of the tourist attractions in Majalengka
werestill uncovered and rarely visited by tourists. Majalengka had at least 20 interesting natural
tourist destinations. These places are shown in Table 3.
Strategic position of Majalengka District is described as followed:
1. Based on National Spatial Plan (PP No. 26 tahun 2008), Majalengka District will be to build
Kertajati Secondary Airport. The area around it will also be built Arjuna Sea Port.
2. In the spatial planning system of West Java Province, Majalengka is located between the
Bandung National Activity Center and Cirebon National Activity Center with Kadipaten
Regional Activity Center (Majalengka), as well as access to Indramayu Regional Activity
Center and Tasikmalaya Regional Activity Center. Spatial Plan of West Java Province
shows that Majalengka Regency has a strategic position which the arrangement is prioritized.
3. The strategic position of Majalengka Regency is supported by several strategic areas, such as
follows:
a. The fast-growing area is the area along Bandung-Cirebon corridor, Cikopo-Palimanan
highway plan, Cisumdawu highway, and the area around Majalengka airport and the
Kadipaten-Majalengka axis.
b. The potential growing areas are in the South: Majalengka Regency along the
Lemahsugih - Bantarujeg - Talaga - Cikijing road corridor.
Majalengka District as an agrarian area had excellent land resources used for agriculture,
plantation and forestry with several advantages, as well as other potential natural resources such
as mining, water resources, beautiful natural resources that could be used for tourism, forest
resources, oil and natural gas that can be utilized for the development of the regional economy.
The population of Majalengka Regency was predicted to reach 1,182,019 (Majalengka
Dalam Angka, 2016) by 2015. The population, with the increasing quality of Human Resources,
was a potential in the administration and development. Majority of the population of Majalengka
Regency was Moslem. Maturity of religion understanding had encouraged people to implement
religious values in all aspects of life and harmony of life. The relationship among other religions
could also be well established.
Majalengka residents had a repertoire and uniqueness in the diversity of cultural features.
The cultural potential of Majalengka District is reflected in the public life order, art style,
superior product creation, language and customs and values of mutual cooperation. If these
potentiall of cultural diversity are wisely and democratically managed, they could be as the basic
capital of development.
The formulation of strategy began with the analysis of internal and external factors to
determine the potential and opportunities of Majelengka Regency with the establishment of
International Airport of West Java. Analysis of external factors include (1) Economic, (2) Social,
Cultural, Demographic, and Environment, (3) Politics, (2) Production and Operation, (3)
Behavioral Changes, (4) Finance, (5) Human Resources, (6) Competitive, SIM, (7) Marketing.
Based on the external factor matrix obtained, the total value was 2.77 and internal was 2.37.
These can be seen in Figure 2 to determine the right strategy for micro business of Majalengka
Regency .
Based on the external internal matrix (Figure 2), it appeared that Majalengka District is
located in Quadrant V, through maintaining strategy. This result showed that micro entrepreneurs
in general were only able to maintain their conventional business. Two strategies choosen were
Market Penetration and Product Development (David, translated by Dono Sunardi, 2009:344).
The market penetration strategy was to seek a greater market share for current products in
existing markets through better marketing efforts. This strategy had low risk. Approaches to
market penetration strategies included: (1) maintaining / increasing market share, (2) dominating
market growth, (3) eliminating competitors, (4) increasing customer use. Wainana and Oloko
(2015) argued that the penetration strategy had an effect on the company's growth.
Product development strategy was to strive for increased sales through current product
improvements or new product development. This strategy had medium risk. This strategy
required changes in business operations, including: (1) research and development, (2) customer
needs assessment, (3) brand clarity.
Ansoff Matrix (Figure 3) was very useful for the formulation of marketing strategies, but
must be preceded by SWOT analysis. The design included an integrated functional management
(marketing, finance, production, and human resources) program, starting with market demand,
product creation, source and use of funds, to human resources who understood business
professionally. Based on the analysis of Figure 2, the alternative marketing strategy offered as a
solution are; (1) market penetration, and (2) product development. The result of SWOT analysis
performed shown in Figure 4.
CONCLUSION
 Based on the results that had been done, it can be obtained these following conclusions:
1. Opportunities owned by Majalengka District were (1) Increase in new employment, service
and trade sector, (2) Ease of land, sea and air transportation, (3) Close to current tourist
areas: Bandung and Cirebon, (4) Industry related to agriculture, (5) Increase in Majalengka
Tourism and Culinary, (5) Untapped natural wealth, (6) Government Support through Perda
no. 11 of 2011, (7) Information Technology Development, (8) Development of Production
Technology.
2. Threats faced by Majalengka District were: (1) Land usage transition, (2) Livelihood
transition, (3) Cultural change, (4) Society’s refusal, (5) Production Risks, (6) Market and
Price Risks, (7) The entry of competitors who are more experienced in business.
3. The strengths of Majalengka District were (1) The introduction of local based products is
started through OVOP (One Village One Product) and BUM Desa, (2) The diversity of
products can be easily traced through the internet, (3) Cooperation with companies, (4)
Solidarity of local people, (5) The nature of kinship and the hospitality of the local people,
(6) Manually prepared products have been produced, but not yet sold outside, (7) Local
product sales booth already exist but not yet optimized, (8) The community is willing to
innovate and change, (9) High motivation to try, (10) Utilization of adequate technology.
4. The weaknesses of Majalengka District were (1) There are no business experience, (2)
Production facilities are not available, (3) Difficulty of raw materials during seasonal
transition, (4) Limited funds and ability to access, (5) Market is yet formed, (6) Product
specifications required by the market, (7) Market segment that must be aimed, (8) Promotion
program that must be done.
5. Strategy that needs to be done based on SWOT analysis were (1) Increasing the quality of
human resources in service and trade, (2) Development of new local based products, (3)
Promotion, (4) Improvement of tourism infrastructure, (5) Business assistance, (6) Market
survey, (7) License granting in accordance with Regional Spatial Plan, (8) Strengthening
local culture.
6. Based on external internal matrix, the chosen strategy was market penetration included (1)
Maintaining/increasing market share, (2) Dominating market growth, (3) Eliminating
competitors, (4) Increasing customer usage, and product development consisted of (1)
Research and development, (2) Assessment of customer needs, (3) brand clarity.
Based on the conclusions made, the suggestions submitted to the Government of
Majalengka District, along with the apparatus under and the community were:
1. Improving the quality of human resources in the field of services and trade, (2) Development
of new local based products, (3) Promotion, (4) Improvement of tourism infrastructure, (5)
Business assistance, (6) Market survey, (7) License granting in accordance with Regional
Spatial Plan, (8) Strengthening local culture.
2. Market penetration consisted of (1) Maintaining/increasing market share, (2) Dominating
market growth, (3) Eliminating competitors, (4) Increasing customer usage. Product
development consisted of (1) Research and development, (2) Assessment of customer needs,
(3) Brand clarity.
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APPENDIX
Table 1
Sub Districts and Zone of Majalengka District
Mountain zone with Corrugated/hilly zone Lowland zone with
No altitude of 500 - 857 m No with altitude of 50 - 500 m No altitude of 19 - 50 m
above sea level above sea level above sea level
1 Argapura 1 Bantarujeg 1 Kadipaten
2 Lemahsugih 2 Majalengka 2 Dawuan
3 Malausma 3 Sindang 3 Sumberjaya
4 Cingambul 4 Sukahaji 4 Ligung
5 Cikijing 5 Rajagaluh 5 Jatitujuh
6 Talaga 6 Sindangwangi 6 Kertajati
7 Banjaran 7 Panyingkiran
8 Maja 8 Cigasong
9 Kasokandel
10 Jatiwangi
11 Palasah
12 Leuwimunding
 Table 2
Contribution of each sector to GRDP
Majalengka District and West Java in 2016
Category Description Majalengka West Java
(%) (%)
A Agriculture, Forestry, Fishery 26.85 8.90
C Processing Industry 14.31 42.49
F Construction 11.99 8.12
Large and Retail Trading, Car and Motorcycle 16.56 15.15
G
Reparation
H Other Services 2.54 1.95
I Provision of Accommodation and Dining 3.12 2.60
Source: Badan Pusat Statistik West Java and Majalengka
 Majalengka District
Vision, Mission, Objective

Identification of Internal and External Factors

Internal Environment Analysis: External Environment Analysis:

Purnama and Setiawan (2003);
1. Management Factor
Dragnic (2014); N. N. Okorie, et.
1. Economy
2. Production and operation 2. Social, Culture,
al. (2014); Wispandono (2010);
Factor Demography, and
3. Behavioral Change Ismawanti (2010); Suendro
(2010); Gemmel (2013); Ommani, Environment
4. Finance Factor 3. Politic, Government, and
5. Human Resource Factor (2011); Li (2008), Pakkanen
(2012); Alfaxard (2013); Njoroge Law
6. Management Information
System Factor (2013); Borici and Osmani 4. Technology
7. Marketing Factor (2015); Liao and Chen (2009); 5. Competitive
Fine (2009)

IFE Matrix EFE Matrix

IE Matrix SWOT Matrix

Strategy of Micro Business

Figure 1
Research Paradigm
 IFE SCORE WEIGHT
AVERAGE
STRONG WEAK
4.0 2.37
4.0
I II III
HIGH Grow and Build Maintain
Grow and Build

EFE
SCORE 2.77 IV V VI
WEIGHT Grow and Build Maintain Harvest or Invest

MEN MEDIUM

VII IX
VIII Harvest or Invest
Maintain Harvest or Invest
LOW

Source: David, translated by Dono Sunardi (2009:344)

Figure 2
Internal – External Matrix

Existing New
Product

Market Product
Existing
Penetration Development
Markets

New
Diversification
Market
Development

Sumber: Team FME. 2013

Figure 3
Marketing Alternative Strategy
 Strengths: Weaknesses:
1. The introduction of local 1. Business experience in
based products is started continuing previous
through OVOP (One Village business
One Product) and Village 2. Production machine
Owned Enterprise facility is not available
2. The diversity of products can 3. Difficulty of raw
be traced easily through the materials during seasonal
internet transition
3. Cooperation with Companies 4. Hang on to predecessor
4. Solidarity of local people practice
5. he nature of kinship and the 5. The ability to manage
hospitality of the local people finance
6. Manually prepared products 6. Access on capital
have been produced, but not 7. Low level of formal
yet sold outside education
7. Local product sales booth 8. Knowledge level on
already exists but not yet business management
optimized 9. Market is yet formed
8. Willingness to innovate 10. Product specification
9. Openness towards change required by the market
10. High motivation to try 11. Aimed market segment
11. Information technology access must be clear, but still
12. Utilization of adequate around the local area
information technology for 12. Promotion program that
business must be done
Opportunities: STRATEGY S-O (using internal STRATEGY W-O (aimed to
1. Increase in new employment, service and trade strengths to attract advantages from fix internal weakness by
sector external opportunities): taking advantages of external
2. Raw material transportation access 1. Increasing of the quality of opportunities):
3. Product transportation access human resources in service 1. Business assistance
4. Close to tourist areas: Bandung City and Cirebon and trade 2. Market survey
City 2. Development of New Local 3. Facilities from Village
5. Agriculture related industry Based Products Owned Enterprise for
6. Increase in Majalengka Tourism and Culinary 3. Promotion machinery, storage
7. Untapped natural wealth 4. Improvement of Tourism facility
8. Government support through Majalengka Regulation Infrastructure 4. Produce products
no. 11 of 2011 according to season
9. Information Technology development
10. Product Technology development
Threats: STRATEGY S-T (using strengths STRATEGY W-T (is
1. There are still people who refuse to avoid or lessen the effect of defensive tactic which is
2. Culture change external threats): directed to lessen internal
3. Livelihood transition 1. License granting in weaknesses and to avoid
4. Land usage transition accordance with Regional external threats):
5. Production risk Spatial Plan 1. Management, production
6. Market and Price risk 2. Local culture strengthening process, marketing and
7. The entry of more experienced competitors in financial training
business
Figure 4
SWOT Matrix