DOMINANT FACTORS AS THE STRENGTHS OF SMALL AND MEDIUM ENTERPRISES OF NATURAL STONE ART AND WOODEN ROOT ART FURNITURE TO SURVIVE IN THE MARKET COMPETITION (CASE IN BOGOR AND SUKABUMI)

Abstract

The main objective of this study is to identify the dominant factors as the strengths of SMEs of Natural Stone Art and Wooden Root Art furniture to survive in the market competition. The study was carried out in 2 cities, districts of Bogor and Sukabumi. The study was conducted since there is decreasing number of artisans of this commodity in these 2 cities because of some internal and external constraints. However, this study would not further analyze the constraints. The main object of the study is analyzing the elements that contribute their survivals in the middle of challenges in the market competition. This study is also only focus on their strategies and internal strengths without treat to any calculations related to total income or profit, number of sales, number of buyer, etc.

This study is using Factor Analysis method to identify the dominant factors. The basic theories being used are Porter’s Generic Strategies and 5 P’s Strategic Management Model. The respondents consist of 50 respondents from Bogor and Sukabumi. Based on the result, there are 2 factor formed as the dominant factors of the survival SMEs. The first dominant factor related to the capability of SMEs to do export transaction and their focus market in export-oriented business. The second dominant factor related to the passion and strong commitment of the firm / artisans in these natural art craft business.