Track: Business Management

Abstract

This research intends to examine the strategies used by SMEs during the COVID-19 outbreak. This study also designed a future business model using a Business Model Canvas (BMC) approach for SMEs and was analyzed using a qualitative method. The data was collected through an in-depth interview with the respondents: owner, customer, marketing officer, and supplier.  The results showed that the company’s value propositions began to create new images in the eyes of its customers. The value proposition includes high-quality raw materials, the characteristic in selecting colors and leather types, simple and elegant design, relatively standard prices, and involving the surrounding community in the production process to create an empowered and independent society. Regarding the channel, the company used online media as a marketing tool for transactions, such as marketplace, social media, and admin sales. Revenue streams are no longer sourced only from the sale of SMEs products online and through social media but also from the dropship, resellers, vendors, and offline sales (bazaar, workshops, and exhibitions). Concerning the key resources, adequate equipment was used to reach maximum results. Besides, manufacturing products manually or using machines to enhance the efficiency and effectiveness of production are the activities added to the element of key activities. The key partnership added was a permanent supplier for the companies, easing them in obtaining their raw materials. Finally, in terms of cost structure, the new value added by the company was to provide discounts for resellers and SMEs dropship suppliers who purchased products.

Keywords:

Business Model Canvas, Strategy, Small Medium Enterprise, Covid-19 Pandemic