Strategic Development of a Knitting Small Medium Enterprise Using SWOT and QSPM Analysis
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Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia's economic development, yet knitting-based MSMEs continue to face challenges including limited digital marketing capabilities, fluctuating revenue, intensifying competition, and rapid fashion trend changes. This study aims to formulate and prioritize business development strategies for a knitting MSME in Kampoeng Radjoet Binongjati, Bandung, using SWOT analysis and the Quantitative Strategic Planning Matrix (QSPM). Internal factors were identified using the Feasibility Model for SMEs as a supporting framework, while external factors were examined using the PESTEL framework. The identified factors were subsequently analyzed using SWOT and the Quantitative Strategic Planning Matrix (QSPM) to determine the firm's strategic position and prioritize business development strategies. These frameworks were used to provide a structured and theoretically grounded factor identification process, addressing a limitation common in prior MSME-focused SWOT studies that rely on ad-hoc factor selection. IFAS results yielded a strengths score of 3.102 and a weaknesses score of 3.559; EFAS yielded an opportunities score of 3.503 and a threats score of 2.623. The firm was positioned in the Weakness–Opportunity (WO) quadrant at coordinates (−0.457; +0.880), indicating a turnaround strategy orientation. QSPM results identified strengthening digital marketing performance as the priority strategy, with a Total Attractiveness Score (TAS) of 11.36.
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