Articles

A Proposed Business Model Innovation Using Blue Ocean Strategy Approach for Kiumarket in The Post-Pandemic Era

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Kiumarket, a local brand in the home fragrance industry, encountered significant challenges in the evolving post-pandemic market landscape. Known for its diverse range of aromatic products, including scented candles, diffusers, and sprays, Kiumarket faced declining sales due to a shift in consumer habits, as people began spending less time at home. The market also saw an influx of new competitors, leading to increased competition and necessitating a strategic reevaluation of Kiumarket’s product offerings and pricing strategies. Furthermore, changing consumer preferences towards specific scents and qualities demanded a more targeted approach to Kiumarket’s product range. The research aimed to address these challenges by exploring effective strategies that would enable Kiumarket to adapt and secure a sustainable competitive advantage. The primary focus was on assessing the effectiveness of a new business model strategy for distinctive positioning in the market, the transformative role of innovative market creation and differentiation in enhancing Kiumarket’s value proposition, and the impact of such strategies on the brand’s market penetration, profitability, and long-term viability. Employing the Blue Ocean Strategy framework, the research delved into the current competitive scenarios using analytical tools like Porter’s Five Forces and the Business Model Canvas. This comprehensive approach helped in understanding the intricate market dynamics, competitor behaviors, and dominant value propositions. The Strategy Canvas was pivotal in analyzing the market landscape, identifying competitive factors, and uncovering potential differentiation opportunities. Innovative thinking was encouraged through the application of the Four Actions Framework and the ERRC Grid, focusing on reconstructing market value and strategy. A variety of research methods were utilized, including in-depth industry reports analysis, surveys, interviews, and focus group discussions. Tools such as SPSS ensured the accuracy and reliability of the data analysis. The study also incorporated Blue Ocean Strategy instruments like the Buyer Utility Map and the Three Tiers of Noncustomers, enabling a deep exploration of new market opportunities and insights into buyer personas. The findings of the research underscored the necessity for Kiumarket to differentiate its products, maintain consistent quality, and enhance customer satisfaction. It suggested that a strategic overhaul of the product line, coupled with competitive pricing and a strong focus on customer engagement, would be crucial. Additionally, targeting non-customers and innovating in product offerings emerged as vital strategies to tap into new market segments.

Business Model Innovation Strategy for Creative Industry in Indonesia

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Indonesia’s creative economy sector has been a promising GDP source based on its steadily increasing performance since 2010. Around 70% of the businesses in this sector are said to be Micro, Small, and Medium Enterprises (MSMEs). Just like any other business, MSMEs also faces challenges not only from internal but also an external factor, hence it is crucial for an MSME’s survival to have resilience in facing problems and uncertainties. One way to assure a business’ resilience is by developing a competitive advantage that could be achieved with a good business model that can develop according to the internal and external situation through periodical evaluation and innovation. stellar/coronae as one of the MSMEs in the creative industry also faces challenges in the form of the appearance of a lot of new entrants and competitors, causing the current market they are operating in to turn into a red ocean. By using the blue ocean strategy, stellar/coronae looks for opportunities in creating a new market instead of competing in the existing red ocean by outperforming the competitors. This strategy of business model innovation is commenced with an external analysis of the business model environment to see possible opportunities and threats, followed by an internal analysis of the strength, weaknesses, opportunities, and threats evaluation of the current business model. The result of these two explorations is then combined using the four actions-framework to see what could be eliminated, reduced, raised, and created from the existing business model. The end product will be in the form of a business model where stellar/coronae not competing with the red ocean any longer but providing a new value proposition in the blue ocean.