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IJSTR >> Volume 7 - Issue 5, May 2018 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Development Strategy Of Competitive Health Of The Beginning Industry Through Management Of Value Added And Non Value Added Activity

[Full Text]



Wiwik Sudarwati, Meri Prasetyawati, Anwar Ilmar Ramadhan



competitive advantage, value chain, efficiency, value added



Jilbab is now recognized as a fashion trend that positively impacts the widespread market of hijab in Indonesia. The impact of the expansion of the hijab market in Indonesia is the rapid growth of the hijab industry. The rapid growth of the hijab industry in Indonesia, whether on a small scale, large or medium scale, sparked competition among these industries to win the competition and or just to survive, especially for the beginner hijab industry. For the novice hijab industry the intense competition is not only as challenging as survival but a challenge to increase the competitiveness of its industry so that it can compete because it has competitive advantage. Problems that occur in this beginner hijab industry one of them is the management of hijab industry beginners who are still traditional and have not paid attention to the efficiency in every activity undertaken. To solve the problem, the step that needs to be done is to identify all value chain activities in the business hijab based on the value chain theory. Where in value chain analysis according to (Porter, 1980) can be used as a strategic analytical tool used to better understand competitive advantage, where companies can increase value added and lower costs so as to make business more competitive. The results of the analysis that has been done on the value chain activity in the beginner's hijab creative industry can be seen that the beginner's creative industry has a profit margin of 5%. Profit margin can be improved by improving the performance of the beginner's creative industry maximally by considering the role of some business process activities of the hijab industry. Business process activities to consider are incoming logistics, operations, outbound logistics, marketing and sales and service activities. Taking into account the role of value chain activities in the hijab making process is expected to improve cost efficiency and enhance the competitiveness of the beginner's industry.



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