CASE STUDY OF CONCENTRATION STRATEGY IMPLEMENTATION IN SMALL AND MEDIUM SCALE MANUFACTURING COMPANIES (SMES)

Abstract

This study aims to analyze how the implementation of the concentration strategy for small and medium enterprises in manufacturing companies. The method used is a qualitative method. The resulting data is descriptive data in the form of written or spoken which can be observed within a certain range from a comprehensive perspective. This study uses a literature study with a content analysis approach. The data used is secondary data in the form of writing sourced from articles and books. The research results show that: (1) The concentration strategy allows to build a strong reputation in the market as well as generate significant name value among consumers. (2) Shifts in consumer demand can mean the market for a single product starts to diminish, a situation that can put SMEs in financial difficulty. (3) Selection of the concentration sub-strategy is the most fundamental thing in efforts to increase SME sales. SMEs can choose market penetration if they want to get additional shares from the existing market by utilizing existing products. SMEs can choose a market development strategy in which SMEs sell existing products in new markets. This strategy is used to inspire SMEs to expand opportunities and find new customers. SMEs can choose a product development strategy whereby SMEs sell new products to existing markets. Horizontal integration can be used by SMEs which is aimed at increasing the strength of SMEs in the market.