ANALYSIS OF UMK BATIK TULIS DEVELOPMENT STRATEGY
WITH BUSINESS MODEL CANVAS APPROACH AND ANP-SWOT
INTRODUCTION:
Micro and Small Enterprises (MSEs) are one of the industries that contribute to the
national Gross Domestic Product (GDP). In 2022, the contribution of MSEs to GDP reached
60.5% of employment of 96.9% of the total national employment (kemenkop.go.id.2022).
The significant growth in the contribution of MSEs in Indonesia every year encourages
various business sectors to continue to meet the needs and desires of consumers.
One of the MSE categories is the hand-written batik business. According to data from
the Center for Handicrafts and Batik (BBKB) of the Ministry of Industry in 2022, there are
around 3,159 batik business units recorded throughout Indonesia. Of these, the large-medium
batik industry amounted to 208 units, and the micro-small batik business amounted to 2,951
units. Almost all regions in Indonesia have written batik products that are distinctive and
different from other regions. However, there are several regions or districts or cities in
Indonesia that are famous as batik production centers. The batik industry is mostly located in
Central Java province, namely 2191 micro-small-medium business units and 108 large-
medium scale business units (BBKB.go.id.2022).
The positive impact of the development of hand-drawn batik MSEs is not only limited to the
economic sector. Moreover, the industry also plays a role in preserving Indonesia's cultural
heritage and promoting the nation's rich arts and culture (Sintawati et al., 2017). This
research will focus on hand-drawn batik MSEs, one type of batik that requires a complicated
manufacturing process. Pekalongan Regency and Banjarnegara Regency are the objects of
research because they are one of the batik centers that still exist and have distinctive motifs
that contain historical value.
One of the districts in Central Java Province that is the center of written batik and still
survives in the modern era is Pekalongan Regency and Banjarnegara Regency. Batik Tulis El
Java Pekalongan is a pioneer of written batik in Wiradesa Village, Pekalongan Regency,
which is known for its coastal batik with rich colors and influences from foreigners (Rojak
2023). Meanwhile, Batik Wardah from Banjarnegara Regency is a center of written batik and
a pioneer of written batik in the Banjarnegara Regency area which features natural resource
motifs (Husny and Syafii 2023). Pekalongan Regency and Banjarnegara Regency
Banjarnegara shows great potential and benefits in the development of written batik.
Moreover, the two MSEs are the pioneers of batik tulis in the region that still exist and
survive in the modern era. The existence of hand-drawn batik MSEs is certainly not obtained
easily, especially facing the modern era, hand-drawn batik entrepreneurs have difficulty
expanding their market share and competing competitively based on the explanation of the
interview. Entrepreneurs need to have a solid business strategy to remain competitive and
maintain industry sustainability (Lin and Chiang 2022).
UMK Batik Tulis El Java Pekalongan and UMK Batik Tulis Wardah Banjarnegara are
the pioneers of hand-written batik who run a traditional hand-written batik business in that
location. Initially, these MSEs only sold products traditionally, but along with technological
developments, the owners tried to develop online sales. The owners of UMK Batik Tulis
Wardah Banjarnegara and Batik Tulis El Java Pekalongan stated that the hand-written batik
business that they have been running for more than 10 years faces various problems, both
external and internal. The external and internal problems faced by Batik Tulis El Java MSEs
include the absence of a business organization structure, limited capital, lack of promotion,
rising raw material costs, the threat of printed products, and weather challenges during the
rainy season. The external and internal problems faced by UMK Batik Tulis Wardah
Banjarnegara include limited capital, a manual accounting system, not having employees in
the IT field, and lack of promotion in the c u r re n t digital era.
Various problems, both internal and external, certainly have a big impact on the
strategies set for the two MSEs of Batik Tulis. An in-depth analysis of the external and
internal environment is needed so that MSEs can determine the right strategy. Providing a
clear picture of the current environmental situation, it is expected that MSE owners can have
a greater understanding in assessing the risks caused by environmental changes. It is time for
owners of hand-written batik MSEs to create a framework that discusses the hand-written
batik business model clearly and in detail and evaluates constraints such as limited human
resources in the IT field, marketing that only relies on offline buyers, inadequate
organizational management, capital, and lack of guidance and training that MSEs often have
to face. Through BMC, MSE owners can improve focus and clarity on what they want to
achieve.
2.1 MSEs in Indonesia
Small and micro enterprises are businesses that have great potential for economic
development in Indonesia. The role of MSEs is often associated with the government's efforts
to overcome the problems of unemployment, poverty and equal distribution of opinions
(Soimah 2020). The development of micro, small and medium enterprises benefits from
government support in providing the necessary facilities to support business implementation
and progress.
Development of Batik Tulis in Indonesia
Batik has evolved over centuries in Indonesia. Starting in the Majapahit era, it became
more popular in the late seventeenth and early nineteenth centuries. Both written and stamped
batik were created in the early 20th century and became popular around 1920 after the First
World War. The word "batik" comes from the Javanese words "amba" and "titik". Amba
means a piece of wide cloth, and "titik" means to make a dot. Batik clothing used to be one of
the clothes used for religious and traditional ceremonies (Isa et al. 2023).
Batik is divided into three types, namely written batik, stamped batik and printed batik.
Among the three types of batik, written batik is the only one that still uses manual and
traditional methods using canting. The way to make it is to pour wax using canting tools on a
cloth that already has a pattern. Making one written batik cloth requires extra diligence and
patience because if you make the slightest mistake, it can affect the final result. This is the
reason why the price of written batik is much more expensive than other batik. As the name
suggests, stamped batik is batik that is made using a stamp or stamp with a batik pattern.
Usually, this stamp is made of copper and is often used as a substitute for the canting function
so that it can speed up the manufacturing process. Although fast, stamped batik is considered
to lack artistic value because all the motifs are the same. The price of printed batik is not as
expensive as written batik, especially since it can be made in bulk. Unlike the previous two
types, batik printing is made by printing using modern machines. Usually, before going
through the batik stage, a motif or pattern is first made. The motif is made into a mold and
then the printing tool is attached to the patterned cotton cloth and dyed. In terms of aroma,
written batik and printed batik
It does not have a pungent smell because it is made of wax (malam). Motifs from
written batik and stamped batik usually penetrate to the back so that the outside and inside of
the batik have motifs. Meanwhile, printing batik is only on the outside. Batik printing and
printed batik generally have neater patterns or motifs than written batik because they are
made using fast tools. Although the motifs of written batik are not as neat as printing batik
and printed batik, that is the artistic value of a batik cloth. Meanwhile, in today's era, printed
batik tends to be more in demand. This is because the price is relatively cheap and uses a fast
machine (Rosyada and Tamamudin 2020).
2.2 Strategic Management
Strategic management is the art and science of formulating, implementing, and evaluating
decisions for an organization to achieve its goals (David 2016). According to Wheelen and
Hunger (2012), strategic management has three benefits, namely a clearer understanding of
the organization's strategic vision, a clearer focus on strategic essentials, and a better
understanding of the organization's environment that is changing rapidly with the times.
The strategy formulation stage includes developing a vision and mission, analyzing external
opportunities and threats, determining internal strengths and weaknesses, developing
alternative strategies, and identifying strategies to be implemented. The strategy
implementation stage includes determining the objectives of a business, formulating policies,
developing employees, and allocating resources so that the strategies that have been set can
be implemented properly. Meanwhile, strategy evaluation, which is the final stage of strategic
management, is a tool to review the results of strategy implementation by reviewing the
external and internal factors on which the strategy is based, measuring the achievement of
organizational performance, and taking corrective action (David 2016).
2.3 Internal Environment
Internal environmental analysis describes the strengths and weaknesses of MSEs in areas
such as human resources, finance and accounting, production and operations management,
and marketing (David (2016). The assessment of internal factors can be divided into five
categories, as follows:
a. Management Aspects
The management aspect consists of five main activities which include planning,
organizing, motivating, staffing, and controlling.
b. Marketing Aspects
Marketing is a process of defining, anticipating, creating and fulfilling the needs and
desires of consumers in obtaining a product or service.
c. Financial Aspects
Financial analysis is related to obtaining funds, collecting funds, paying debts,
controlling cash, and planning the financial needs of an organization.
d. Human Resource Aspects
Human resources are the main capital for a company. The quality of human resource
suitability affects performance, employee satisfaction, and labor turnover.
e. Production/Operational Aspects
The production or operational activities of a business include all activities that convert inputs
into goods or services. The production or operational aspect has five main activities that
are analyzed, which include process, capacity, inventory, labor and quality.
2.4 External Environment
PESTEL analysis is a factor analysis of the external business environment consisting
of political, economic, social, technological, environmental, and legal factors. PESTEL is
used to assess the market of a business unit or organizational unit. The direction of PESTEL
analysis is a framework for assessing the situation, assessing strategy or position, the
direction of MSEs, and marketing plans or ideas (Ward and Peppard 2002). PESTEL factors
include:
a. Politics
Political factors include applicable laws, government policies, and formal or informal
regulations within an MSE (e.g. tax policies and local regulations).
b. Economy
Economic factors include all factors that affect the purchasing power of customers and
influence the business environment of MSEs (for example: exchange rate standards,
interest rates and economic growth).
c. Social
Social factors include all factors that can affect customer demand and the size of the
existing market share (for example: people's education level, population growth rate,
social and work environment conditions).
d. Technology
Technological factors include anything that helps overcome business challenges and
supports the efficiency of MSEs' business processes (e.g., invention and development
of new technologies, cost and use of technology, changes in knowledge, and impact of
technological change).
e. Environment
Environmental factors such as geographic location can be used in strategic planning as
they can influence buyer decisions and affect the production process.
f. Legal
The external factors regarding the legal field include regulations on the protection of
intellectual property rights needed to protect products from misuse or counterfeiting.
2.5 IFE and EFE Matrix
After collecting data, the next step is to use the internal factor evaluation (IFE) and external
factor evaluation (EFE) matrices to quantitatively evaluate internal and external factors.
The IFE and EFE matrix can be developed or analyzed in 5 steps as follows (Hubeis and
Najib (2014):
a. Make a list of key factors and internal factors (strengths and weaknesses) and external
factors (opportunities and threats).
b. Determining the weight value of each factor that affects MSEs. The weighting value is
based on a scale of very unimportant to most important. The total of the weight values
is 1.0.
c. Ranking each factor on a scale of 1 (very poor), 2 (good), 3 (good), 4 (very good). A
rating scale of 3 and 4 is given for strength and opportunity factors, while a rating scale
of 1 and 2 is given for weakness and threat factors.
d. Create a score by multiplying each weight by the rank of each key factor.
e. Adding all score values to get the total score.
The results of the IFE and EFE matrix processing are quantitative, namely if the total score
is more than 2.5, MSEs can optimize existing strengths and opportunities against
weaknesses and threats (David 2016). The following stages of evaluating internal and
external factors can be seen in Table 4.
2.6 IE Matrix and SWOT Matrix
After recording and evaluating the internal and external factors affecting Batik Tulis
MSEs through the IFE and EFE matrices, the next stage is matching with SWOT strategies
and the IE Matrix. The IE Matrix can be seen from Figure 1.
By combining the total scores of the internal and external matrices into an IE matrix,
MSEs can determine their position and the strategies they should focus on. A grid divided by
nine sections called cells or divisions has different managerial implications. The following is
the position and strategy of MSEs based on the quadrants of the IE matrix (David 2016):
a. Division I, II, IV MSEs are in a position of growth and development, the appropriate
strategies used are incentive strategies (market penetration, market development,
product development), and integrative strategies (forward, backward, and horizontal
integrative).
b. Divisions III, V, VII show that MSEs are in a maintain and nurture position. The right
strategies to use are market penetration and product development.
c. Divisions IV, VIII, and IX show that MSEs are in a declining position, a good strategy
to use is to divest or reduce some assets to reduce costs. The best position is Division
I, II, IV. These MSEs are usually market leaders in running their business.
After knowing the position of MSEs, the next step is to match with the SWOT analysis. The
SWOT matrix can be seen in Figure 2. Strategies that can be formulated in the SWOT matrix
(David 2016) include:
a. S-O (Strengths-Opportunities) is a strategy that uses internal strengths to optimize
external opportunities.
b. W-O (Weaknesses-Opportunities) is a strategy that eliminates internal weaknesses to
take advantage of external opportunities.
c. S-T (Strengths-Threats) is a strategy that uses the internal strengths of MSEs to avoid
or reduce the impact of external threats.
d. W-T (Weaknesses-Threats) is a defensive strategy to reduce internal weaknesses and
avoid threats.
2.7 Business Model Canvas
The business model is divided into four pillars, namely product, consumer, infrastructure and
finance. The four pillars are then refined into nine building blocks in the business model
canvas (Osterwalder (2010). The following is the Business Model Canvas which is divided
into nine building blocks, namely:
a. Customer Segment
Customer segments are groups of people that businesses want to reach to achieve their
desired sales goals and targets.
b. Value Proportion
Value proportion is a problem solving to satisfy customer needs in the form of value
(benefits) offered so that customers have an interest in buying products or using services.
c. Marketing Channel
Marketing channels are a description of how a business communicates with its customers
and how to reach customers.
d. Customer Relationship
Customer relationship is a type of relationship that you want to have with your customer
segment with the aim of building relationships with customers, retaining customers, and
increasing sales.
e. Revenue stream
Revenue stream is the flow of income received by businesses from each market segment.
f. Key resources
Key resources describe the essential assets required for a business model to function. Key
resources can be categorized as follows:
1. Facilities. Physical assets in the form of facilities such as factories, buildings,
machinery and equipment, sales systems, and distribution networks.
2. Intellectual. Intellectual resources include brands, know-how, patents and copyrights,
and customer databases.
3. Human resources
4. Financial. Financial resources or financial collateral can include cash, credit, and other
necessities to meet resource needs.
g. Key activities
Key activities describe the important things that MSEs must do in order for their business
model to work optimally.
Key activities can be categorized as follows:
1. Partnership
Partnership describes the network between suppliers and partners that makes the
business model work.
2. Cost structure.
The cost structure is the costs incurred to run the business model, here are the
characteristics of the cost structure:
3. Fixed costs.
The fixed costs incurred will always be the same and are not affected by the volume of
goods or services issued.
4. Variable costs.
5. Costs whose amount varies proportionally with the volume of goods or services issued.
Business Development Model Design Stage
The final stage of the business development strategy is to design a business model in
accordance with the strategy formulation. A simple business development model can be
designed using the business model canvas approach.
2.8 Analytic Network Process (ANP)
Analytical network Process (ANP) is a mathematical theory that can analyze influences with
an assumption approach to solving a form of problem. The ANP method is used in the form
of a solution with consideration of the adjustment of the complexity of the problem with
decomposition accompanied by a priority scale (Falcone 2019).
Weighting with ANP requires a model that represents the interrelationships between criteria
and their sub-criteria (Saaty 2004). If the cluster is denoted by Ch, where h = 1, 2, ..., N, with
nh elements denoted by eh1, eh2, ..., ..eh nh. The influence of a set of elements in a cluster on
other elements in a system can be represented through a ratio-scaled priority vector derived
from pairwise comparisons.
Stages of Analysis Network Process (ANP)
Model Construction:
The construction of the ANP model is based on theoretical literature review and
provides questions to experts through ANP questionnaires to examine information more
deeply to obtain real problems (Hamdani et al. 2019).
Quantification Stage:
The quantification stage of the model uses questions in the ANP questionnaire in the
form of pair-wise comparison between elements in the cluster to determine the difference
through a numerical scale of 1-9. The assessment data is then collected and inputted through
the super decision software. The following definitions of verbal scales and numerical scales
can be seen in Table.
Analysis of results
Analyze the results by inputting the results of the questionnaire that has been filled in
by respondents in the Super Decisions software, then looking for the geometric mean (GMk)
value and calculating the Kendall's Coefficient of Concordance value which is a measuring
tool for calculating rater agreement using Microsoft Excel. Rater agreement is a measure that
shows the level of agreement (agreement) of the respondents (R1-Rn) on a problem in one
cluster. The tool used to measure rater agreement is Kendall's 20 Coefficient of Concordance
(W; 0<W<1). W=1 indicates perfect agreement (Ascarya 2005). The following are the stages
of the ANP method, among others:
Framework of Thought:
The research on the development strategy of Batik tulis MSEs begins with identifying
the current business model so that it can find out the characteristics of the business that must
be developed and can form the right strategy. There are three stages in strategy formation
(David 2016). The first stage in developing a business model is evaluating internal
environmental factors (IFE) and external environmental factors (EFE). The second stage is
matching based on internal and external environmental factors to determine the position of
MSEs using an internal external matrix (IE Matrix), and formulating alternative business
development strategies using SWOT analysis. The final stage is to conduct a strategy priority
assessment using the Network Process Analysis (ANP) method. The results of strategy
prioritization were then implemented into the new Business Model Canvas.
ANP Framework
The results of interviews with UMK Batik Tulis El Java Pekalongan, UMK Batik
Tulis Wardah Banjarnegara, as well as literature studies and relevant literature resulted in the
formulation of an ANP framework that can be applied to formulate development strategies
for written batik MSEs. There are four clusters including:
1. The first cluster is the goal, which is the development strategy of Batik Tulis MSEs.
2. The second cluster is criteria formulated based on internal factors, external factors, and
business focus factors.
3. The third cluster is the sub-criteria formulated based on the factors of strengths,
weaknesses, opportunities, threats, and good business criteria.
4. The fourth cluster is the SO strategy, WO strategy, ST strategy, and WT strategy.
The ANP framework in this study can be seen in Figure 8 and the ANP framework is
processed using Super Decisions software.
1.2 Data Processing and Analysis Methods
The method of data processing and analysis in this study uses descriptive analysis and
three stages of strategy formation (David 2016). The data obtained, processed and analyzed
with qualitative and quantitative analysis through the approach of strategic management
concepts. Qualitative analysis includes internal factors (human resources, marketing, finance
and production) and external factors (economic, technological, political, social or cultural,
environmental, and legal). Meanwhile, quantitative analysis was carried out using the ANP
method which prioritized MSE strategies (Kharisma and Hadiyanto 2019).
1.3 Stages of Strategy Formulation
There are three stages of strategy formulation, namely the input, matching, and
decision-making stages (David 2016). The input stage is carried out by identifying the
internal and external environmental factors of the two MSEs using the IFE and EFE methods,
then the matching stage is the stage of formulating alternative strategies using the SWOT
method and the IE matrix to determine the position of the MSEs, and finally the decision-
making stage aims to determine the priority of alternative strategies for batik MSEs based on
the ANP method.
4.1.1 El Java Batik Tulis Micro Business
Batik Tulis El Java was established in early 2010. M Abdu Rizal Bahri is the founder
of El Java Pekalongan batik. The owner's background is a high school graduate in
Pekalongan Regency. At first he participated in batik-making training conducted by one of
the CSR companies in Pekalongan Regency. After three months of training in hand-written
batik, he decided to establish hand-written batik in his hometown in the Wiradesa district of
Pekalongan. At first she only made 2 cloths that she worked on herself for 2 months. After
finishing the work, she offered it to one of the batik shop owners in Pekalongan. Since this
time, the owner has made a profit and increased capital so that the business can grow.
Currently, the Batik Tulis El Java Pekalongan micro business has 30 hand-written batik
craftsmen and 2 people in the packing department. Currently, the El Java Pekalongan batik
business has a turnover of 600 million per year, so it is classified as a micro business.
4.1.2 Batik Wardah Banjarnegara Small Business
Batik Banjarnegara is currently experiencing positive development, as evidenced by
the many orders from collectors (Friskadewi and Setiadi 2020). One of the well-known hand-
written batik small businesses in Banjarnegara is Wardah hand-written batik. The owner has
been developing batik tulis Banjarnegara for almost 15 years. The types of batik produced are
pure batik tulis, semi batik tulis, and batik tulis accessories. According to Mrs. Nanik as the
owner, batik production is done by 50 batik makers and 2 gallery employees. Most of the
existing batik makers are the old generation and only a few young batik makers. Currently,
the Wardah Banjarnegara hand-written batik business already has a turnover of 2 billion per
year so that it is classified as a small business based on the criteria for micro and small
businesses regulated in Government Regulation No. 7 of 2021.
4.2 Batik MSE Business Model
After conducting an in-depth interview, information was obtained about BMC
(Business Model Canvas). The purpose of identifying the business model of Batik Tulis El
Java Pekalongan micro business and Batik Wardah Banjarnegara small business is for the
company to understand the current business model. Business model identification also helps
in finding new business development opportunities. The Business Model Canvas consists of
nine segments: customer segments, value proposition, marketing channels, customer
relationships, revenue streams, key activities, key resources, partnerships, and cost structure
(Osterwalder 2010). The reason for using BMC (Business Model Canvas) to describe the
business model in batik tulis micro and small businesses is because it is simple and easy to
understand (Sundiman 2018).
4.2.1 Business Model of UMK Batik Tulis El Java Pekalongan
Batik Tulis El Java Pekalongan is one of the batik tulis micro businesses in Pekalongan
Regency and has a simple business model that can be divided into 9 elements. The following
is the business model of the El Java Pekalongan Batik UMK.
1. Customer Segment
Batik Tulis El Java Pekalongan micro business categorizes customer segmentation in
the upper middle class with the main target being government agencies. In addition, the Batik
Tulis El Java Pekalongan micro business also targets people who love typical local products
such as collectors and tourists. Currently, the Batik Tulis El Java Pekalongan micro business
also targets written batik products to various regions in Indonesia such as Pekalongan,
Yogyakarta, Surakarta, and Jabodetabek. Overseas segmentation is in several Asian countries
such as Malaysia, Hong Kong, etc. The following is an example of an image of El Java
Pekalongan hand-written batik UMK products which can be seen in Figure 9.
2. Value proportion
UMK Batik Tulis El Java Pekalongan gives value to the motifs or designs that are
produced, this is of course there is a philosophy of motifs that are distinctive and full of
meaning. Pekalongan batik includes coastal batik, precisely the north coast of Central Java.
The decorative variety of coastal batik mostly applies decorative varieties from the natural
sources of flora and fauna of the Pekalongan area. Cement motifs are one of the classic
typical motifs of Pekalongan batik models. Batik from Pekalongan has a distinctive character,
which is dominated by decorative lines on the fabric. The philosophy of a person's character
is steadfast and strong which is depicted by the garuda bird. The giver of prosperity and
protector of the world is depicted with the tree of life.
Another motif of Pekalongan batik is the bright moon pattern. The philosophy of batik
terang bulang is someone who provides peace and light for life. The Javanese Hokokai batik
motif is the result of acculturation with Japanese culture. This batik motif has existed since
the Japanese colonial period in Indonesia, and was made by batik craftsmen from
Pekalongan. The name Hokokai is taken from the name of a community organization, namely
the Community Service Association. The most common motifs in Hokokai batik are flowers
and butterflies. This has a philosophy to suit Japanese preferences and cultural acculturation
as Japanese people often wear kimonos with these motifs.
Batik Tulis El Java Pekalongan tries to prioritize high quality and high quality
products with middle to upper class consumers. Product positioning of Batik Tulis El Java
Pekalongan has an exclusive, elegant, luxurious image in the minds of consumers. The
benefits conveyed from Batik Tulis El Java products to consumers are trying to introduce
batik motifs typical of Pekalongan Regency with flora and fauna motifs.
3. Marketing channel
UMK Batik Tulis El Java Pekalongan conducts conventional sales that involve direct
interaction between the seller and the customer. Usually, this happens through resellers or
through batik exhibition events. Conventional sales make it easier for customers to see, feel,
and try batik products directly before buying. In addition, sales are also made through online
shops. Online sales allow customers to purchase products or services through online
platforms such as shopee, tokopedia, facebook, and instagram.
4. Customer relationship
The category of relationships established by MSEs to customers is through
promotions and discounts to customers. Providing exclusive discounts to customers who have
been loyal and make frequent purchases can provide incentives for them to remain loyal, this
is the main goal to be able to build better relationships. In addition, one form of effort to build
relationships with customers is to accept custom motif orders. Through custom orders, UMK
Batik Tulis El Java Pekalongan has the opportunity to improve the quality of UMK products
and services.
5. Revenue stream
The main source of income for UMK Batik Tulis El Java Pekalongan is through direct
product sales to batik resellers and also online product sales in the marketplace.
6. Key resources
In carrying out its business activities, a company needs key resources. The main
resources owned by this MSE include human resources which are divided into owners or
owners, batik craftsmen, and packing parts. In addition, the physical resources owned by this
MSE are in the form of production materials and tools (canting, malam, cap, dye, cloth,
sewing machine), and business location. Other resources that are most needed by these MSEs
are business capital which is used as initial funds or funds during production.
7. Key activities
The main activities carried out by UMK Batik Tulis El Java Pekalongan are making
written batik products, marketing products through Facebook and Instagram, holding
exhibitions, selling batik products, and training.
8. Partnership
The partnership undertaken by the company is buyer-supplier. The Buyer-Supplier
relationship in the El Java Pekalongan hand-written batik MSEs is MSEs as raw material
buyers and partners as raw material suppliers. In the context of the supply chain, this
partnership covers various aspects, ranging from maintaining trust in the quality of raw
materials, mutual benefit, and fulfillment of raw materials for hand-written batik. In addition,
UMK Batik Tulis El Java Pekalongan also partners with the community and the Pekalongan
Regency Government.
9. Cost structure
The UMK Batik Tulis El Java Pekalongan business requires Fix Cost, which includes
labor costs and operational costs (electricity, water, internet). In addition, this MSE also
requires variable costs, which include the cost of raw materials for hand-written batik that
must be available on an ongoing basis during the production process.
4.2.2 Business Model of MSEs of Batik Tulis Wardah Banjarnegara
Batik Tulis Wardah Banjarnegara is one of the written batik small businesses in
Banjarnegara Regency and has a simple business model that can be divided into 9 elements.
The following is a business model for UMK Batik Tulis Wardah Banjarnegara.
1. Customer segments
UMK Batik Tulis Wardah Banjarnegara categorizes its customer segmentation into
batik tulis enthusiasts and batik tulis collectors. In addition, this MSE also targets people who
love typical local products in the Banjarnegara, Yogyakarta, and Magelang areas. The UMK
owner also targets product sales to various countries (export). The following is an example of
an UMK product image of Batik Tulis Wardah Banjarnegara.
2. Value proportion
UMK Batik Tulis Wardah Banjarnegara gives value to its products in the motifs or
designs produced with the main purpose of being able to be used comfortably both formally
and non-formally. In addition, this MSE always releases new clothing models and product
designs that are not owned by other batik productions as competitors. UMK Batik Tulis
Wardah Banjarnegara has a variety of products such as batik accessories.
Positioning of batik tulis Wardah Banjarnegara that from the beginning MSEs thought
about how their products have uniqueness or characteristics that are valuable in the eyes of
consumers. Positioning is one of the segments that can be done by MSE owners to capture
the minds of consumers from competitors (Govindarajo et al. 2021). Batik Tulis Wardah
Banjarnegara is unique in terms of color in contrast to other batik. The red and brown colors
are the distinctive colors owned by Batik Tulis Wardah Banjarnegara and cannot be imitated
by any batik. It takes about 1-2 months to complete a piece of this unique batik. So do not be
surprised if the price can reach hundreds of thousands to millions of rupiah. Although the
price of written batik is quite expensive, most consumers still buy it because the quality
produced is more guaranteed.
The owner mentioned that the average Batik Tulis Wardah customer comes from out
of town and abroad. Batik Tulis Wardah Banjarnegara is also characterized in terms of its
design, namely the many motifs that are used in the design depicts the natural resources of
Banjarnegara City. Each design has its own story that depicts the nuances of the surrounding
nature. Such as the salak motif, dawet ayu motif and pring motif. Each motif illustrates the
philosophy of the richness of natural resources that need to be preserved by the current
generation.
3. Marketing channel
UMK Batik Wardah Banjarnegara sells directly at the batik gallery in Gumelem
Village, Banjarnegara Regency. In addition, UMK Batik Wardah Banjarnegara also sells
through national and international batik exhibition events. Written batik sales are also carried
out through online shops on online platforms such as shopee, Instagram, and Facebook. The
advantage of online shops is that customers can access the online shop for 24 hours as long as
customers and shop admins are connected to the internet. Online sales allow MSEs to
communicate and promote more widely, even globally throughout the world.
2. Relationship with customers
The relationship category that the company wants to establish with customers is run
through discounts for resellers. In addition, one form of effort to build relationships with
customers is to ask for testimonials or responses from consumers after buying products at
Wardah batik. This is used by UMK Batik Tulis Wardah Banjarnegara as learning material
and improving UMK services, as well as evaluating UMK performance. Another way that
can be done to build relationships with resellers and customers is to create a WhatsApp
group, this is done to facilitate the communication process both for the checking of goods,
ordering, and the payment stage.
3. Revenue stream
The main source of income for UMK Batik Tulis Wardah Banjarnegara is through
direct product sales at batik galleries (batik cloth and finished products such as clothes and
bags), 30% online product sales, and receiving retail and wholesales orders for government
agencies.
4. Key resources
Human resources consist of craftsmen, tailors, and shop employees. In addition, the
physical resources available at UMK Batik Tulis Wardah in running the business are in the
form of adequate production materials and tools (canting, malam, dye, cloth, sewing
machines, etc.).
5. Main activities
The main activities carried out by UMK Batik Tulis Wardah Banjarnegara are making
written batik products, promoting written batik, and selling batik products to buyers. These
activities are carried out on an ongoing basis so that the batik production process sold by UMK
Batik Wardah Banjarnegara is more developed.
6. Partnership
The partnership undertaken by UMK Batik Tulis Wardah Banjarnegara is a
partnership with raw material suppliers such as suppliers of mori cloth, batik malam
suppliers, batik dye suppliers, and Wardah batik resellers. In addition, UMK Batik Tulis
Wardah Banjarnegara also partners with the batik community to maintain the development of
batik and expand the national market share.
7. Cost Structure
UMK Batik Tulis Wardah Banjarnegara requires fixed costs which include labor
costs, operational costs (electricity, water, internet). In addition, these MSEs also require
variable costs, which include the cost of raw materials for hand-written batik that must be
available on an ongoing basis during the production process.
4.3 MSE Strategy Formation Input Stages
After obtaining the results of the old BMC, the next stage is to conduct interviews to
find out the internal factors and external factors.The purpose of knowing the internal and
external factors is for the formation of MSE strategies.
4.3.1 Input Stages of Strategy Formation for El Java Batik UMK Pekalongan
1. Identification of Internal Factors of MSEs of Batik Tulis El Java
Pekalongan
The identification of internal factors of Pekalongan El Java Batik MSEs in running
their business is obtained from the results of interviews conducted by researchers to those
who play a role and are responsible for the development of MSEs. The following are the
strengths that El Java Pekalongan MSEs have to develop their business:
a. Professional batik workers
The performance of workers at El Java Pekalongan Batik UMK is in good condition.
The employed batik workers as a whole have in-depth expertise and knowledge of the art of
batik due to decades of batik experience. They have high technical skills in performing the
batik process, choosing colors, drawing motifs, and applying techniques. UMK Batik Tulis El
Java Pekalongan in the production process divides the jobdesk of workers into drawing
workers, batik workers, coloring workers, and packing workers as well as admin.
b. Quality fabric raw materials
The raw materials used in the production process at UMK Batik Tulis El Java
Pekalongan use good quality fabrics, including cotton, silk, and mori fabrics. Mori and cotton
are fabrics with a soft and lightweight texture.
This fabric is usually used for written or stamped batik. Cotton has a soft texture, is
lightweight, and easy to process. In addition, silk fabrics have a distinctive luster and
softness, giving batik a luxurious feel. However, the batik process is more complicated due to
the slippery silk fibers.
c. The distinctive color of hand-written batik patterns
The process of coloring batik patterns at UMK Batik Tulis El Java Pekalongan is
carried out carefully by experienced workers, resulting in detailed batik patterns. The process
of coloring the brown color in batik patterns at the El Java Pekalongan Batik UMK still uses
soga bark herb, tingi, tegeran and others to obtain a mature or dark brown color, the cloth is
dyed in a tub of soga herb. This is one of the advantages of this MSE because it uses
materials that maintain their quality. The El Java hand-drawn batik pattern displays the
beauty of flora and fauna motifs typical of the city of Pekalongan with bright colors.
d. Raw material availability
El Java MSEs are located in Pekalongan Regency, which is a batik center in
Indonesia, so they have many raw material suppliers. El Java Pekalongan hand-written batik
MSEs already have regular suppliers who supply batik raw materials such as cloth, dyes, and
malam. The availability of these raw materials speeds up the batik production process.
Furthermore, the weaknesses of UMK Batik Tulis El Java Pekalongan in running a batik
business are:
a. Production capacity has not met market demand
Currently, the El Java Pekalongan Batik UMK can only produce about 10 kodas of
batik a month, but the market demand exceeds that. So it is necessary to increase the capacity
of workers to meet the existing market demand for the progress of the batik business that is
currently managed.
b. Lack of business organization structure
UMK Batik Tulis El Java Pekalongan does not yet have an organizational structure
that is structured in accordance with the existing jobdesk. At this time, the jobdesk is centered
on the owner of El Java Pekalongan Batik UMK.
c. Limited business capital
Batik Tulis El Java Pekalongan MSEs currently use private capital in their business
development. These MSEs face limitations in the financial resources available to carry out
business operations and development. This can be a significant challenge in implementing the
strategy and achieving the desired growth of El Java Pekalongan Batik MSEs.
d. Lack of promotion
Competitors of UMK Batik El Java Pekalongan are better at utilizing social media to promote
and sell their products. This can be seen from the appearance of social media and product
sales in the marketplace. UMK Batik El Java Pekalongan has also not been active in
participating in various national and international events.
1. Evaluation Results of Internal Factors of MSEs Batik Tulis El Java Pekalongan
The result of IFE processing is a score, which is the result of multiplying the internal
weight and rating. The result of multiplying the weight and rating of each factor will be the
accumulated score of the internal factors that will be used in the internal and external matrix
analysis. The following results of the Internal Factors Evaluation (IFE) of UMK Batik Tulis
El Java Pekalongan can be seen in Table 9 below:
Based on the results of data processing (Table 9), it shows that the overall total
internal score of MSEs is 2.70, which means that Pekalongan Batik Tulis El Java MSEs can
utilize their strengths rather than overcome their weaknesses (David 2016).
2. Identification of External Factors of MSEs Batik Tulis El Java Pekalongan
After identifying the internal factors of UMK Batik Tulis El Java Pekalongan in running its
business, the next step is to identify external factors. The evaluation of external factors aims
to identify the company's ability to take advantage of opportunities and the company's
capacity to respond to business threats. The following are the opportunities owned by El Java
Pekalongan Batik UMK:
a. Increased market demand for hand-written batik
Demand for premium hand-written batik products is currently increasing. Pekalongan
hand-written batik products are characterized by unique motifs so that export opportunities
are high and become a good opportunity for MSEs Batik Tulis El Java Pekalongan.
b. Support from Pekalongan Regency Government
The role and policies of the Pekalongan Regency government that support the hand-
written batik industry are a good opportunity for the progress of MSEs. None of the policies
regulated by the Pekalongan Regency government are burdensome for El Java Batik MSEs,
so production, marketing, and sales run smoothly. The existence of business management
training from the local government is also a positive thing for the progress of El Java
Pekalongan batik MSEs to grow.
c. Technology development
Technological developments in marketing activities are very influential, especially in
terms of online marketing. Online marketing allows MSEs to quickly change and adjust
marketing strategies according to changing market needs and trends. Through online
marketing, MSEs can interact directly with customers through social media, email, and other
available platforms. Batik MSEs can answer questions, provide support, and build closer
relationships with customers. The existence of technological developments is an opportunity
to increase customer satisfaction and build brand loyalty (Harimurti and Suryani 2019).
d. Exhibition offer
The level of customer loyalty or attachment to a product or brand reflects the extent to
which customers tend to buy the product repeatedly and maintain their preference for the
product. This is illustrated in UMK Batik Tulis El Java Pekalongan by participating in
various national and international exhibitions. UMK batik can expand its market share and
have a closer relationship with customers.
Furthermore, threats that can hinder the development of UMK Batik Tulis El Java
Pekalongan externally in running a batik business, namely:
a. Increase in raw material costs
An increase in raw material costs can negatively impact the business of Pekalongan
Batik Tulis El Java MSEs. Higher operational costs can reduce the profitability of the
business, limit the business's ability to offer competitive prices, or even force the business to
reduce its workforce or close down.
b. The threat of printed batik products that resemble Pekalongan hand-written
batik
The threat that occurs in the batik business in Pekalongan is the price of printed batik
products which have a lower price. The technology owned by China is able to produce
copycat products that are not as good as those in other countries resemble authentic batik
products. The cheaper price makes buyers buy a lot of imitation batik products, of course this
is a threat to written batik entrepreneurs and makes competition tighter. This condition raises
concerns for MSE owners, although in terms of quality MSEs Batik Tulis El Java Pekalongan
remains superior.
c. Lack of public knowledge regarding Pekalongan handmade batik
The lack of knowledge about Pekalongan hand-written batik may lead to low interest
from the public to buy or wear Pekalongan hand-written batik. People may be more likely to
choose other types of batik or other textile products that are better known or familiar to them.
d. Competitor promotions are more active
Lack of knowledge about managing social media is a threat to Pekalongan Batik El
Java MSEs. In today's modern era, batik businesses are starting to market their products
online.
e. Weather changes
Due to changes in the weather, Pekalongan's El Java batik entrepreneurs have
experienced problems in the drying process of batik cloth, which is usually carried out for
only 2 days, during the rainy season the drying process can take 3-4 days, thus affecting the
written batik production process.
1. Evaluation Results of External Factors of MSEs Batik Tulis El Java Pekalongan
The process of evaluating external factors is a process to determine the main
opportunities and main threats of the company, in this case the El Java Pekalongan Batik
UMK. This process is carried out using the External Factors Evaluation (EFE) method. The
EFE matrix is used to determine how much influence from external business factors that
describe the company's external conditions consisting of opportunities and threats. The results
of EFE processing are in the form of a score, which is the multiplication of external weights
and ratings.
Based on the results of data processing (Table 10), it shows that the overall total external
score of MSEs is 2.67, which means that Pekalongan Batik Tulis El Java MSEs have better
external environmental conditions than competitors (David 2016).
4.3.2 Input Stages of Strategy Formation for Batik Wardah Banjarnegara MSEs
1. Identification of Internal Factors of Batik Wardah Banjarnegara MSEs
Identification of internal factors of Batik Wardah Banjarnegara MSEs in running their
business is obtained from the results of interviews conducted by researchers to MSE owners.
The following are the advantages possessed by MSES Batik Write Wardah Banjarnegara to
grow the business:
a. Has a batik gallery and the making process can be seen directly
The Wardah batik gallery serves as a promotion and marketing center for hand-
written batik products. Through the gallery, UMK Batik Wardah Banjarnegara can showcase
a wide range of batik products with unique designs and motifs and attract the attention of
potential customers.
b. Skilled batik makers who have been involved in training
Skilled batik makers with training experience usually have higher skills in producing
quality batik. They have a good command of traditional batik techniques, including motif
selection, coloring, and the use of batik tools. These skills give them the ability to create batik
that is beautiful, neat and follows high quality standards.
c. Has a distinctive motif
Banjarnegara's distinctive batik motifs distinguish the products of UMK Batik
Wardah Banjarnegara from other competitors. In the competitive batik industry, having a
unique and distinctive motif can make the product better known and remembered by
customers. The motifs owned by UMK Batik Wardah Banjarnegara are typical motifs of
natural resources in Banjarnegara Regency such as dawet ayu and salak motifs. This can help
build a competitive advantage and create a larger market share for UMK Batik Wardah
Banjarnegara.
d. Has a variety of products
UMK Batik Tulis Wardah Banjarnegara has batik derivative products such as batik
clothes and accessories, giving it a wider appeal among consumers. This allows UMK Batik
Wardah Banjarnegara to reach a wider market segment, including those who prefer modern
fashion and the latest trends. These batik-derived products owned by UMK Batik Wardah
Banjarnegara can attract the younger generation or consumers from different cultural
backgrounds, who may not be familiar with traditional batik in the form of cloth.
e. Export-standard batik quality
The export-standard batik products of Batik Wardah Banjarnegara MSEs generally have
higher added value, good quality, attractive designs, and sustainability in meeting export
standards increase the value of batik products. This allows UMK Batik Wardah Banjarnegara
to set higher selling prices and earn greater profits from the sale of batik products.
Furthermore, the weaknesses of UMK Batik Wardah Banjarnegara internally in running the
batik business are explained, namely:
a. Long production process of hand-written batik
The production process of written batik does take a relatively long time of about 1-2 weeks
and involves several complicated stages. This long production process relies on the skill and
diligence of the batik maker in applying patterns, controlling the flow of wax, and choosing
and applying colors appropriately. The end result of this process is a unique, beautiful, and
highly valued written batik as a precious cultural heritage.
b. No IT employee yet
Batik Wardah Banjarnegara MSEs do not have IT employees, which results in these MSEs
facing limitations in the use and utilization of technology. This limitation can affect the
efficiency of marketing operations and the ability to utilize technological innovations in order
to increase MSE income.
c. Limited business capital
According to the owner of Wardah Banjarnegara MSE, the business capital owned by
Wardah Banjarnegara Batik MSE is very limited. This may result in limiting the MSEs'
ability to conduct business growth and development. In addition, the limited capital also
results in difficulties expanding production facilities, purchasing new equipment, new
services, and developing batik tulis.
d. Lack of promotion
The ineffective promotion of UMK Batik Wardah Banjarnegara creates problems in
terms of communication about the benefits and value of products or services to customers.
With the lack of promotion, UMK Batik Wardah Banjarnegara cannot maximize the potential
of its products or services in meeting the needs and wants of customers. The lack of product
promotion can cause restrictions on business growth for MSEs Batik Wardah Banjarnegara.
e. Raw materials come from outside the city
Sending raw materials from outside the city will involve higher transportation costs.
UMK Batik Wardah Banjarnegara needs to consider shipping costs, logistics costs, and
supply chain management costs to ensure that raw materials can be delivered safely and on
time. This can have an impact on the overall production cost and needs to be considered in
the calculation of the selling price of the products of UMK Batik Wardah Banjarnegara.
f. Accounting system is still manual
The existing accounting system at UMK Batik Wardah Banjarnegara often involves
manual processing and the use of worksheets or cash books. This can take longer to record,
calculate, and analyze financial data. This slow process can hinder efficiency and lack of
accuracy in financial reporting.
2. The following results of the Internal Factors Evaluation (IFE) of UMK Batik Wardah
Banjarnegara can be seen in Table 11 below:
3. Identification of External Factors of MSEs Batik Wardah Banjarnegara
The next step is to identify the external factors of MSEs. The following are the opportunities
owned by MSEs Batik Wardah Banjarnegara:
a. Support from Banjarnegara Local Government
The Banjarnegara Regency Government can play a role in the development that
supports the batik industry. The Banjarnegara Regional Government during the covid
pandemic provided assistance or incentives for business capital assistance funds to batik
industry players including UMK Batik Wardah Banjarnegara. In addition, local government
support can be in the form of business capital assistance, product development assistance, or
marketing assistance.
b. Easy access to information
By utilizing easy access to information and technology, UMK Batik Wardah
Banjarnegara can reach more customers and increase sales of batik products. UMK Batik
Wardah Banjarnegara is also involved in online communities related to batik or handicraft
products. Join discussion groups, forums, or communities on social media to promote hand-
written batik products and maximize the sales potential of UMK Batik Wardah Banjarnegara
batik.
c. Banjarnegara tourism promotion increased
Effective promotion of Banjarnegara Regency tourism can increase local and
international tourists. The presence of tourists will increase visits to the Wardah Banjarnegara
batik gallery. Increasing the tourism sector will also increase awareness and appreciation of
the uniqueness of Banjarnegara batik produced by UMK Batik Wardah Banjarnegara in
particular.
d. Obligation of agencies to wear batik
Agencies or governments require the use of batik as a uniform or official dress. This
policy will create a significant increase in demand. The higher demand will boost the market
growth of Batik Wardah Banjarnegara MSEs.
Furthermore, threats that can hinder the development of UMK Batik Wardah Banjarnegara
externally in running a batik business, namely:
a. Increase in raw material costs
The cost of raw materials rises, meaning that MSEs of Batik Wardah Banjarnegara
will face higher production costs. This includes the cost of purchasing raw materials for
hand-written batik, transportation or shipping costs, and higher storage costs. In covering the
increase in production costs, UMK Batik Wardah Banjarnegara batik may increase the selling
price of the product so that the value of batik in the market will be higher.
b. Weather changes
Weather changes during the rainy season can cause delays in the hand-drawn batik
production process. Batik drying and coloring require dry and sunny weather conditions.
During the rainy season, UMK Batik Wardah Banjarnegara experiences difficulties in
completing the production process efficiently. Changes in weather can slow down the supply
of products to the market and hamper the ability to meet customer demand.
c. Competitors who are more active on social media
In today's modern era, batik entrepreneurs are trying to utilize social media to promote
and sell their products. This is done by the competitors of batik tulis Wardah Banjarnegara.
UMK Batik Wardah Banjarnegara is classified as less adaptive to technological
developments. If buyers switch and choose competitors due to a stronger presence on social
media, this may result in a decrease in revenue.
d. Lack of public knowledge related to Banjarnegara batik
If people are not aware or recognize Banjarnegara batik, the market for batik products
may be limited. Batik Wardah Banjarnegara MSEs face difficulties in marketing their
products and finding new customers. The lack of public awareness may also limit business
opportunities and the growth of the Banjarnegara batik industry.
Matching Stages of MSE Strategy Formation
4.3.3 Internal and External (IE) Matrix Results
The IE (Internal-External) matrix is a strategic analysis tool used to evaluate the
internal and external factors that affect the performance of a company. The IE matrix allows
companies to conduct a comprehensive evaluation of internal factors (strengths and
weaknesses) and external factors (opportunities and threats). The following is the IE matrix
of El Java Pekalongan Batik UMK and Wardah Banjarnegara Batik UMK as follows:
1. IE Matrix of Pekalongan El Java Batik UMKs
The company's total IFE score is 2.70 and the total EFE score is 2.67. Based on the IE
matrix, the company's condition is in division V. According to David (2016), stating that
Division V MSEs are in a growing and developing position, the right strategy to use is an
incentive strategy (market penetration, market development, product development).
The company's total IFE score is 3.25 and the total EFE score is 2.51. Based on the IE
matrix, the company's condition is in division IV. Division IV, the company needs to look at
the opportunities that exist in the business environment, identify opportunities that can be
utilized to develop business and improve performance. For example, new market
opportunities, increased demand for certain products, or profitable partnerships.
4.3.4 SWOT Matrix Results
After knowing the position of the IE matrix, then develop a SWOT strategy in
accordance with the conditions of MSEs. The following are the results of the SWOT matrix
matching of Pekalongan El Java Batik UMK which can be seen in table 13 and Wardah
Banjarnegara Batik UMK in table 14.
1. Actively participate in national and international batik events
Participating in national and international batik events gives batik industry players the
opportunity to expand their exposure, including Pekalongan Batik Tulis El Java MSEs. In
these events, Pekalongan MSEs can showcase batik products, introduce the brand to a wider
audience, and build a strong brand image. This can help increase the awareness and
popularity of batik products owned by UMK Batik Tulis El Java Pekalongan.
2. Expanding national market share
By expanding the national market share, the Pekalongan batik industry has wider
access to sell its batik products to customers in various regions in Indonesia. This will have a
positive impact on increasing the sales and income of the Pekalongan batik industry as a
whole. In an effort to expand the national market share, the batik industry of UMK Batik
Tulis El Java Pekalongan can establish partnerships with other companies retailers, stores, and
distributors in various parts of Indonesia. Expanding market share can open up opportunities
to expand business networks, improve distribution, and expand product range.
3. Established El Java Pekalongan hand-written batik gallery
Seeing the development of batik which is increasing in demand, it is necessary to take
advantage of opportunities by opening a batik gallery. The existence of the El Java
Pekalongan hand-written batik gallery makes it easier for consumers to buy batik. The batik
gallery will reach potential buyers such as local and international tourists who want to shop
for batik as souvenirs.
4. Utilize training or workshops on business management
Business management training can help Pekalongan's Batik Tulis El Java MSE
industry improve their operational efficiency and productivity. Industry players will learn
about effective management methods and techniques to optimize production processes,
manage inventory, organize workflow, and improve product quality. With increased
efficiency and productivity, the Pekalongan batik industry can produce products at a lower
cost and improve their competitiveness in the market.
5. Utilize the participation of bank financial institutions and capital loans
The batik industry of UMK Batik Tulis El Java Pekalongan can utilize financial
institutions such as banks to gain access to capital needed for business development. Capital
loans can be used to purchase new production equipment, increase production capacity,
develop facilities, or diversify products. Additional capital will enable the batik industry to
grow and expand their operations.
6. Motive and event publicity on social media
Publicity of motifs and events on social media can support collaborative promotion
with other parties at El Java Pekalongan Batik UMK. For example, MSEs can collaborate
with designers, celebrities, or social media influencers to promote. The use of social media
for motif and event publicity in the batik industry can increase public awareness, reach a wider
audience, and build strong follower engagement.
7. Conduct motif design development and diversification
The diversification of motif designs allows El Java Pekalongan UMK Batik Tulis to
enter different market segments and create new business opportunities. By presenting more
modern motifs or focusing on a particular theme, UMK Batik Tulis El Java Pekalongan can
attract consumers who may not have been met before, such as young consumers or
international markets.
8. Utilize digitization training
The digitalization training helps Pekalongan Batik Tulis El Java MSEs in adopting
digital technology and tools that can improve efficiency in the production process. In
addition, with digitalization, the batik industry can expand their market reach. Building an
online store allows batik products to be accessed by consumers from various regions.
Utilizing the digitalization training by the SGs opens up new opportunities to increase sales
and business growth.
9. Improve efficiency to increase production volume
By optimizing the production process and managing inventory properly, MSEs can
reduce raw material, labor, and operational costs. Efficiency will have a positive impact on
the profit margin and price competitiveness of batik products.
1. Developing cultural tourism and improving the batik gallery display
Developing cultural tourism and improving the b a ti k gallery display of UMK Batik
Wardah Banjarnegara is indeed very necessary to increase the attractiveness of tourists
coming to the batik gallery. Arrange the batik collection in a way that is attractive and easy
for visitors to understand. In addition, the owner can ensure that the lighting in the Wardah
Banjarnegara batik gallery is adequate for the visitors.
highlights the beauty and details of batik.
2. Developing social media for promotion
Social media makes it easier for Batik Wardah Banjarnegara MSEs to promote and
sell products online. By uploading product photos, creating promotional content, and
directing users to online shops or websites, the batik industry can increase sales and revenue.
Social media users can also share posts or recommend batik products to their friends, which
can have a positive impact on brand exposure and increase sales.
3. Expanding market share
Expanding the market share can have a positive impact on Batik Wardah
Banjarnegara MSEs in terms of sales. Steps that can be taken are by collaborating with the
local tourism industry such as hotels. In addition, offering a unique experience in the form of
batik-making workshops, batik factory tours, or collaboration in cultural and tourism events
Fashion. This can help expand the reach to both local and international travelers.
4. Utilize digitization training
Digitalization training can provide an increase in skills and knowledge that is needed
in the face of technological changes and increasingly competitive market demands.
Therefore, MSEs of Batik Wardah Banjarnegara need to adopt digital technology. MSEs can
improve their operational efficiency, expand their market reach, and increase their
competitiveness in today's digital era.
5. Utilize business management training
The training conducted by the local government of Banjarnegara Regency will help
the MSEs of Batik Wardah Banjarnegara in managing their finances effectively, including
financial reporting, budget setting, and cash flow monitoring. In addition, they will also learn
about effective online sales strategies, such as pricing, promotion, and customer relationship
management.
6. Utilize the role of bank financial institutions and capital loans
Without adequate capital assistance, MSEs will experience difficulties in the business
development process to increase income. The local government as a stabilizer needs to
provide various capital assistance to batik MSEs. Capital assistance that can be assisted by
the Cooperative Office of MSEs and Trade of Banjarnegara Regency, the first is Micro
Business Productive Assistance (BPUM), the second is assistance from CSR companies or
financial institutions and the last is capital assistance which is usually called People's
Business Credit (KUR).
7. Improving the quality and excellence of batik to remain competitive
Currently, the level of competition for batik products at the market level is very rapid,
so the quality of the product determines whether it is accepted or not in the market. UMK
Batik Wardah Banjarnegara must innovate in batik design to keep attracting consumer
interest. In addition, the product variations of UMK Batik Wardah Banjarnegara must be
trending and always provide attractive designs in order to remain competitive.
relevant in the era of the younger generation.
8. Increase cooperation with batik-loving communities
Cooperation with the batik-loving community allows UMK Batik Wardah
Banjarnegara to utilize the community's network and influence in marketing and promotional
activities. Batik-loving communities are often active in social media, online forums, and
national or international events. By working with the community, UMK Batik Wardah
Banjarnegara can gain wider exposure, get recommendations from community members, and
reach more specific and targeted potential customers.
9. Adding employees who have competence in the IT field
There is a need for a strategy to increase the number of workers in the IT field at
UMK Batik Wardah Banjarnegara. Employees with IT competencies can assist the batik
industry in developing and managing digital systems. IT employees can assist the batik
industry in digital marketing strategies. They can manage online marketing campaigns
through social media, email marketing, or digital advertising.
10. Improving the production layout
By improving the production layout, the batik industry can optimize the production
process, improve quality, and increase efficiency. This contributes to increased productivity,
customer satisfaction, and the ability of the batik industry to compete in a competitive market
(Arumsari 2023). An improved production layout can ensure that each stage of batik
production at UMK Batik Wardah Banjarnegara is carried out in a more carefully controlled
manner. Room layout is needed so that the production process can be more effective. One of
them is in the drying room of Wardah Banjarnegara hand-written batik.
4.4 Analytic Network Process (ANP) Analysis of MSEs
After the ANP model and network are formed, the next process is the quantification of
priority values. The priority value is seen from the geometric mean value. The following is an
image of the ANP network on the super decison software.
4.4.1 Results of ANP Analysis of MSEs of Batik Tulis El Java Pekalongan
Data on the results of the assessment and inputted through the super decision software
to be processed so as to produce priority output for MSEs Batik Tulis El Java Pekalongan.
The following results of ANP analysis of MSEs of Batik Tulis El Java Pekalongan can be
seen in Table.
1. Internal Factors
Based on the results of ANP (Analytic Network Process) with data sources from
several sources regarding the internal factors of MSEs Batik Tulis El Java Pekalongan, it is
found that financial factors are the most influential on the development and progress of the
batik business managed by MSEs Batik Tulis El Java Pekalongan with a score of 0.4804. In
addition, through ANP (Analytic Network Process) analysis, it is also found that the
marketing factor has the lowest score compared to other factors with a score of 0.1079.
Although it has the lowest score, this can certainly also be used as evaluation material. This is
because the marketing factor is also a major point in the development and progress of MSEs,
through good marketing, of course, the products owned can be recognized and reach a wider
community.
Internal analysis is an analysis that comes from within the UMK Batik Tulis El Java
Pekalongan industry which is divided into two aspects, namely strengths and weaknesses.
The strength aspect is the factors that are the advantages of the batik industry to support the
development of batik MSEs. Weakness analysis is a factor within the MSEs that can hinder
the development of the El Java Pekalongan Batik UMK. The following are the main strengths
and weaknesses of the El Java Pekalongan Batik UMK.
a. Strengths
Based on the results of calculations from the five respondents in this study. In the
strength aspect, UMK Batik Tulis El Java Pekalongan has a distinctive batik style that has the
highest priority score with a score of 0.3408 with a priority order, namely; 1) Distinctive batik
patterns; 2) Professional batik makers; 3) Export quality; and 4) Availability of raw materials.
The owner of the hand-written batik emphasizes the excellence of the motif with good
coloring techniques. The uniqueness of the motifs helps maintain the reputation of UMK El
Java. This can certainly determine the development and progress of UMK Batik.
b. Weaknesses
Based on the opinions of the respondents, in the aspect of weakness, the factor of lack
of promotion at MSEs Batik Tulis El Java Pekalongan has the highest priority score with a
score of 0.3865 in priority order, namely: 1) Lack of promotion; 2) No organizational
structure; 3) Low production capacity; 4) Limited capital. This shows that the lack of
promotion of batik products in Pekalongan Batik Tulis El Java MSEs is a priority element to
get attention in developing MSEs.
Limited promotion results in limitations in reaching a wider market. Without
sufficient promotional efforts, batik MSEs may only reach local or regional markets. Lack of
promotion Effective promotion can cause batik MSEs to lose out to competitors who are
more active in promoting their products. So that there needs to be an evaluation carried out
by UMK Batik Tulis El Java Pekalongan regarding promotional strategies to reach a wider
market.
Promotional activities can be carried out easily through social media, the use of this
strategy also has a big impact on the reach of the community in recognizing the products
offered. The use of social media is also not limited by time and space, sellers and traders can
communicate with each other and negotiate as long as they are connected to a good internet.
Promotional strategies that can be carried out through social media are advertisements, posts,
and other forms.
2. External Factors
Based on the results of the ANP (Analytic Network Process) external factors of the El
Java Pekalongan Batik UMK, it is found that economic factors have the most influence on the
development and progress of MSEs with a score of 0.3088. External economic factors
include consumer purchasing power, demand for batik products, and currency fluctuations
that can affect production costs and batik prices.
In addition, through ANP (Analytic Network Process) analysis, it is also found that
environmental factors have the lowest score compared to other factors such as technological,
social, political, and legal factors. Although it has the lowest score, this can certainly be an
important evaluation and note to anticipate weather changes during the batik production
process.
External analysis is carried out to identify factors that come from outside the UMK
Batik Tulis El Java Pekalongan industry, namely aspects of opportunities and threats. The
following are the main aspects of opportunities and threats for MSEs of Batik Tulis El Java
Pekalongan.
a. Opportunities
Based on the opinions of experts who are respondents in this study. In the opportunity
aspect, the role factor of the local government towards MSEs Batik Tulis El Java Pekalongan
has the highest priority score with a score of 0.4023 with a priority order, namely: 1) The role
of the Pekalongan Regency Government; 2) Increased demand; 3) Event offers; and 4)
Technology development. This shows that the role of the local government towards
Pekalongan El Java Batik MSEs, whether in terms of policies, assistance, or others, can be a
priority element to develop MSEs.
The Pekalongan district government has an important role in promoting and
marketing Pekalongan batik widely. The government can organize batik events and festivals,
both at the local and national level, to raise awareness and appreciation of Pekalongan batik.
It can also support promotion through marketing campaigns, appearances in exhibitions, and
building relationships with the tourism and hospitality industry to market batik to tourists.
b. Threat Aspects (Threasts)
Based on the opinions of experts who are respondents in this study, in the threat
aspect, the factor of increasing raw material costs has the highest priority score with a score
of 0.3676 in priority order, namely:
1) Increase in raw material costs; 2) More active competitor promotions; 3) Threat of
printing products; and 4) Lack of public knowledge regarding written batik; 5) Weather
changes. With an increase in raw materials, the price of hand-written batik will also
increase. This is certainly a threat to the batik products of UMK Batik Tulis El Java
Pekalongan, so it needs to be overcome by recalculating the cost of goods produced and
making product efficiency.
3. MSE Focus Factor
Based on the ANP (Analytic Network Process) results, it is found that the profit factor
with a score of 0.3513 is of particular concern to the El Java Pekalongan Batik UMK for the
development and progress of the batik UMKs it manages. Focusing on profit plays an
important role in maintaining the sustainability and growth of batik MSEs. This involves
good financial management, optimizing selling prices and production costs, managing
financial risks well, and looking for profitable MSE opportunities.
4. Strategy Prioritization of Pekalongan Batik Tulis El Java MSEs
a. Strengths-Opportunities
The score for establishing a batik gallery in the strengths- opportunities analysis is
0.4150, which shows that it is superior to the aspects of actively participating in national or
international batik events and expanding the national market share.
b. Strengths-Threats
Based on the strengths-threats analysis shown in the figure above, it can be concluded
that developing motif designs is the most important strategy. The strategy score for
developing motif design and diversification is 0.5116.
c. Weaknesses-Opportunities
Utilizing business management training conducted by UMK Batik Tulis El Java
Pekalongan is the most important strategy as for the score of utilizing the participation of bank
financial institutions and lending capital in the weaknesses-opportunities analysis of 0.6188.
d. Weaknesses-Threats
Utilizing digitalization training is a priority scale. The score for utilizing digitalization
training in the weaknesses- threats analysis is 0.6532.
1. Internal Factors
Based on the results of ANP (Analytic Network Process) with data sources from
several sources regarding the internal factors of UMK Batik Wardah Banjarnegara, it is found
that the marketing factor is the most influential on the development and progress of batik
MSEs managed by UMK Batik Batik Wardah Banjarnegara with a score of 0.41809.
Marketing factors in this case include improving brand quality and increasing customer
quantity. Good marketing will help increase customer awareness of the batik brand offered.
Forms of marketing strategies that can be carried out such as advertising, promotion, social
media. Through this strategy, batik MSEs can reach potential customers and introduce their
brand to the target market. Good marketing factors are key in the development of batik MSEs.
In addition, through ANP (Analytic Network Process) analysis, it is also found that the HR
factor has the lowest score compared to other factors such as production and finance with a
score of 0.1096. Even though it has the lowest score, this can also certainly be used as an
evaluation material and can be a supporting factor in the development of the batik industry.
Human resources who are highly motivated and committed to batik MSEs will have a
positive impact on productivity, quality, and operational efficiency. In addition, the ability of
competent employees to produce high-quality batik will help maintain customer satisfaction
and strengthen the brand image and be better known to the wider community.
Internal analysis is an analysis that comes from within the UMK Batik Wardah
Banjarnegara industry which is divided into two aspects, namely strengths and weaknesses.
The following are the main aspects of strengths and weaknesses in the UMK Batik Tulis
Wardah Banjarnegara.
a. Strengths
Based on the opinions of experts who are respondents in this study, the strength
aspects of MSEs Batik Wardah Banjarnegara has a distinctive motif to be the highest priority
with a score of 0.2741 with a priority order, namely: 1) Distinctive motifs; 2) Professional
batik makers; 3) Having derivative products of clothes and bags; 4) Export-standard batik
quality; and 5) Having a batik geleri. UMK Batik Wardah Banjarnegara can produce
distinctive batik patterns with high accuracy and precision. The expertise of professional
batik makers is also important to maintain the authenticity and characteristics of Banjarnegara
batik. Distinctive motifs will play an important role in the production of Banjarnegara batik,
so these MSEs can continue to produce high-quality batik and maintain their competitiveness
in the market.
b. Weaknesses
Based on the opinions of experts who are respondents in this study, the weakness
aspect of the factor of not having IT employees at MSEs Batik Wardah Banjarnegara has the
highest priority score with a score of 0.3147 in priority order, namely: 1) Do not have IT
employees; 2) Lack of promotion; 3) Limited capital; 4) Process old production; and 5) The
accounting system is still traditional; 6) Raw materials come from out of town. IT employees
have an important role in being responsible for developing and managing automated
production and ordering systems. Without the presence of IT employees, it will certainly
make it difficult to implement technology that can speed up the production and ordering
process.
2. External Factors
Based on the results of ANP (Analytic Network Process) with data sources from
several sources regarding the external factors of MSEs Batik Wardah Banjarnegara, it is
found that technological factors are the most influential on the development and progress of
batik MSEs managed by MSEs Batik Wardah Banjarnegara with a score of 0.2507.
Technological advances in batik production can include the use of printing presses, digital
equipment, or more efficient coloring methods. The development of production technology
can certainly affect the productivity, quality, and efficiency of the batik production process.
Thus, technological factors are the most important external factors that determine the value of
the quality and quantity of batik production managed by UMK Batik Wardah Banjarnegara.
In addition, through ANP (Analytic Network Process) analysis, it is also found that
environmental factors have the lowest score compared to other factors such as social,
political, economic and legal factors with a value of 0.1014. The external factors regarding
the environmental field include the influence of weather on batik dyeing techniques, and the
use of environmentally friendly sustainable colors to reduce negative impacts on the
environment. Although it has the lowest score, this can certainly be an important evaluation
and note to protect the environment from the influence of the batik industry production.
External analysis is carried out to identify factors that come from outside the UMK
Batik Wardah Banjarnegara industry, namely aspects of opportunities and threats. The
following are the main aspects of opportunities and threats in the UMK Batik Tulis Wardah
Banjarnegara.
a. Opportunities
In the opportunity aspect, the factor of easy access to information about existing
products in UMK Batik Wardah Banjarnegara has the highest priority score with a score of
0.4214 with a priority order, namely: 1) Easy access to information; 2) Local government
support; 3) Promotion of Banjarnegara tourism increases; and 4) Obligation to wear batik in
Indonesia. This shows that the ease of access to information on MSEs of Batik Wardah
Banjarnegara is a priority element for developing MSEs. With easy access to information,
batik designers can quickly find new design inspiration. Easy access to information also
allows batik producers to expand their market reach. Batik producers can use online
platforms such as websites, social media, or e-markets to promote and sell their products
globally. This makes it possible to reach potential customers outside the local area and
increase sales.
b. Threat Aspects (Threasts)
In the threat aspect, the increase in raw materials has the highest priority score with a
score of 0.3333 in order of priority, namely: 1) Increase in raw materials; 2) More active
competitor promotions; 3) Lack of public knowledge related to batik; and 4) Weather
changes. The increase in raw materials is a very big threat if not properly evaluated. One of
the impacts of this is the increase in the price of hand-written batik. So of course it is
necessary to strategize good efficiency in the production process.
3. MSE Focus Factor
Based on the ANP (Analytic Network Process) results from several sources regarding
the focus of MSEs from UMK Batik Wardah Banjarnegara, it is found that the efficiency
factor with a score of 0.3134 is of particular concern to UMK Batik Wardah Banjarnegara for
the development and progress of the batik MSEs it manages. The efficiency factor in the
batik product industry involves the optimal use of resources to achieve production goals at an
efficient cost. Efficiency in the batik production process involves setting up an efficient work
flow, using the right equipment and machinery, and organizing well in each stage of
production. Efforts can be made to identify and reduce waste of time, labor or materials in the
batik production process.
In addition, through ANP (Analytic Network Process) analysis, it is also found that
brand image and customer satisfaction have the lowest score compared to other focus factors
such as productivity and profit factors with a value of 0.1333. Despite having the lowest
score compared to other factors, brand image and customer satisfaction also need to be
considered for the development and progress of batik industry MSEs. Managing the brand
well can be done through attractive designs, effective marketing communications, and a
strong brand presence in the market can help improve the brand image and attractiveness of
batik MSEs. The maintenance of brand quality will certainly also be in line with batik
customer satisfaction with the batik products offered.
4. Strategy Prioritization of Banjarnegara Batik Wardah MSEs
a. Strengths-Opportunities
Based on the strengths-opportunities analysis shown in the figure above, it can be
concluded that developing social media is the most important strategic priority for the
development and progress of the batik industry managed by UMK Batik Wardah
Banjarnegara from the strengths-opportunities aspect. The score for developing social media
for promotion in the strengths- opportunities analysis is 0.3384.
b. Strengths-Threats
Improving the quality and excellence of batik to remain competitive by UMK Batik Wardah
Banjarnegara is the most important strategic priority for the development and progress of the
batik industry managed by UMK Batik Wardah Banjarnegara from the strengths-threats
aspect. The score for improving the quality and excellence of batik to remain competitive in
the strengths-threats analysis is 0.5771.
c. Weaknesses-Opportunities
Utilizing digitalization training conducted by UMK Batik Wardah Banjarnegara is the most
important strategic priority scale for the development and progress of the batik industry
managed by UMK Batik Wardah Banjarnegara from the weaknesses-opportunities aspect.
The score for utilizing digitalization training in the weaknesses-opportunities analysis is
0.5736.
d. Weaknesses-Threats
Based on the weaknesses-threats analysis, it can be concluded that adding employees who
have competence in the IT field is a priority scale. The score for adding employees who have
competence in the IT field in the weaknesses-threats analysis is 0.62052.
CONCLUSIONS :
1. The most dominant internal factor of El Java Pekalongan's Batik Tulis micro enterprises
is financial factors, the most dominant external factor is economic, the most dominant
focus factor is profit, the most dominant aspect of business criteria is superiority over
competitors. The most dominant internal factors of small businesses of Batik Tulis
Wardah Banjarnegara are marketing factors, the most dominant external factor is
technology, the most dominant focus factor is efficiency, the most dominant aspect of
business criteria is increasing profits.
2. The most dominant strength aspect of Batik Tulis El Java Pekalongan micro business is
the distinctive color of batik patterns, the most dominant weakness aspect is the lack of
promotion, the most dominant opportunity aspect is the role of the Pekalongan Regency
Government, while the most dominant threat aspect is the increase in raw material costs.
The most prioritized strength aspect of the Wardah Banjarnegara Batik Tulis small
business is having a distinctive motif, the most dominant weakness aspect is not having
IT employees, the most prioritized opportunity aspect is the increase in the tourism
sector, while the most insurmountable threat aspect is the increase in raw materials.
3. The strategies that need to be carried out by Batik Tulis El Java Pekalongan micro
businesses based on priorities include utilizing digitalization training, utilizing business
management training, developing motif designs and diversification, and establishing a
batik tulis gallery. The strategies that need to be carried out by small businesses of Batik
Tulis Wardah Banjarnegara based on priorities include adding employees who have
competence in IT, improving quality and excellence, utilizing digitalization training, and
developing social media.
