Indonesian economy through Small Medium Enterprises (SMEs) is expected to absorb labor andÂ contribute to the growth of Gross Domestic Product. However, SMEs lack both managerial and technical skills.Â This research is about business model innovation for SMEs especially in fashion and garment industry. StudyÂ used qualitative approach by mentoring four selected SMEs in Babakan Penghulu Villageâ€“ Cinambo Sub-District, Eastern Bandung. The tools used to analyze them including PEST analysis, Porterâ€™s Five Forces,Resource Based View, Value Chain Analysis and Business Model Canvas. Finding suggests SMEs to haveÂ business model innovation derived from value proposition. SMEs should build their own brand awareness.Â Moreover, as garment and fashion industry, design can be a particularly important part of the ValueÂ Proposition. SMEs could communicate its value propositions and inform their service through its officialÂ websites and other social media. Since the intangible resources include brand and design, thus SMEs shouldÂ build brand image and innovate year by year. SMEs must hire designers and launch a series of new products offers under the signature of their own brands. Ideation to strengthen strategies derives from value propositionÂ building block as a starting point. Moreover, Business Model Canvas makes strategy more focused andÂ measurable. Business model innovation is expected to increase overall performance of SMEs.
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