Formulating Business Strategy for Fashion Retail Business: a Case Study
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The fashion industry as one of the sub-sectors of the creative economy shows continuous growth each year. The growth in fashion industry is not always give positive impact for SMEs as competition rapidly increasing in this industry. SMEs need to review their positions in the industry and formulate business strategyto achieve competitive advantages. This research aims to study business strategy formulation of Beauty Fashion Industry (BFI), an SME in fashion industry sells fashion bags for men and women. BFIhad experienced some difficulties due to competitions and had not achieved significant growth. Thus, the research question in this study is “How is the formulation of business strategy to gain competitive advantage in BFI?” Qualitative approach using case study is used to gain thorough and detailed information. Data collection method is using semi-structured interviews and documentation. SWOT analysis is used to determine BFI’s strategic position incorporating value chain analysis to analyze the internal factors, while five forces analysis is used to conduct external factors analysis. The conclusion of this study shows that the SWOT of BFI refers to the application of WO strategy. Competitive advantage can be gained by implementing the steps of the strategy that focuses on repairing the internal weakness of BFI. It is also essential to prioritize marketing improvement, especially using technology. These improvements aim to prepare BFI to seize broader market opportunities and the larger market share of the fashion industry.