Development Strategy for Improving Local Economy Potential: A Case Study of Binong Jati Knitting Industrial Center, Bandung - Indonesia

Development Strategy for Improving Local Economy Potential: A Case Study of Binong Jati Knitting Industrial Center, Bandung – Indonesia, International Journal of Basic and Applied Science

Yuhana Astuti , Grisna Anggadwita , Fadly Anggriawan Putra

Abstract – Industrial Center is one of the sectors that contribute in improving local economy potential of a region. Binong Jati Knitting Industrial Center is one of the local economy potential of communities in Bandung city, Indonesia. The development strategies in industrial centers are needed to improve the local industries competitiveness both nationally and internationally, particularly in facing the ASEAN Economic Community (AEC), which would into force in January of 2016. This research aims to develop a competitiveness strategy for Binong Jati Knitting Industrial Center in Bandung, Indonesia. Data were analyzed using Competitive Profile Matrix (CPM) to identify the main competitors and to understand the competition among other industries. A SWOT matrix was analyzed based on the analysis of Internal Factor Evaluation (IFE) and external factor evaluation (EFE). Furthermore, A Quantitative Strategic Planning Matrix (QSPM) was used in mapping the alternative strategies priority for the competitiveness of the Binong Jati Knitting Industrial Center. The results show that businesses in Binong Jati Knitting Industrial Center need to implement an aggressive strategy. The strategy development that needs to be implemented for the SMEs as a top priority is market penetration, by expanding the market share for existing products through the better marketing efforts.

Key Words – AEC; Competitiveness Strategy; Local Economiy; QSPM; SWOT.