BUSINESS MODEL INNOVATION STRATEGY FOR CREATIVE INDUSTRY (CASE STUDY OF STELLAR/CORONAE)

• Main Author: Ajeng Widiarni, Stella
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71289
• Institution: Institut Teknologi Bandung

Indonesia’s creative economy sector has been a promising source of GDP 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 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 is able to develop accordingly to the internal and external situation, by periodical evaluation and innovation. stellar/coronae as one of the MSMEs in the creative industry also faces challenges in the form of a low sales performance issue. This research is started by analyzing the root cause of the issue experienced, which then will be resolved using the business model strategy adapted from Osterwalder and Pigneur’s Business Model Generation book (2010). First, the business model environment will be analyzed to see possible opportunities and threats presented by the market, industry, trends, and also macroeconomic forces. Second, an internal analysis using business model evaluation will be done to the current business model canvas (BMC) to assess the business’s strengths, weaknesses, opportunities, and also threats. The result of the evaluations from the business model environment and also the BMC will be analyzed using the blue ocean strategy and the four-actions framework from Kim and Mauborgne (2005) to generate a new BMC. Based on the root cause analysis, it is found that stellar/coronae’s low sales performance issue is caused by multiple root causes that is when translated into the BMC spread to a few blocks. A holistic approach is then taken to see what else could be explored from these root causes and what room for improvement is there that could be made use of. After analyzing further using the four actions framework, five main changes for the BMC are proposed which are then translated into a new business model canvas along with an implementation plan for the business to execute.