Strategic Analysis of a Local Coastal Micro-Enterprise: Evidence from Squid Egg Cracker Business in Batam, Indonesia
DOI:
https://doi.org/10.31629/dignity.v1i1.8288Keywords:
Strategic Analysis, Local Coastal, Micro-EnterpriseAbstract
Micro, Small, and Medium Enterprises (MSMEs) producing squid egg crackers in Pulau Abang, Galang District, Batam, possess significant potential as a distinctive local product based on abundant marine resources. However, these enterprises face critical challenges that impede their growth and competitiveness. This study examines the competitive strategies of squid egg cracker MSMEs operating in coastal areas where traditional production methods and limited market access constrain business development. The research employs a qualitative descriptive approach through semi-structured interviews with five key stakeholders: the business owner, a family member involved in production, a raw material supplier, and two customers. Using PESTEL analysis, Porter's Five Forces model, and Key Success Factors (KSF) framework, this study systematically evaluates the external macro-environment, industry competitive intensity, and critical success determinants. The findings reveal that external factors present mixed challenges and opportunities: government support and business legality remain limited, while economic sustainability depends heavily on seasonal raw material availability. Conversely, strong family involvement and positive social acceptance constitute major internal strengths. Porter's Five Forces analysis demonstrates low competitive rivalry and low buyer bargaining power, yet high supplier bargaining power due to seasonal raw material constraints. Threats from substitute products and new entrants remain relatively low due to product differentiation and market entry barriers. Internal Factor Analysis Summary (IFAS) scored 3.20 and External Factor Analysis Summary (EFAS) scored 3.00, indicating a favorable strategic position. Key success factors identified include product uniqueness based on local resources, quality consistency, stable raw material supply, digital marketing implementation, and business legalization. Based on these comprehensive analyses, the study recommends an aggressive growth strategy emphasizing product differentiation strengthening, digital market expansion, and business legality enhancement to improve competitiveness and ensure long-term business sustainability in both local and regional markets.
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