BUSINESS MODEL INNOVATION FOR CANDRA REMAJA BATIK BASED ON CUSTOMER PREFERENCES USING ANALYTICAL HIEARCHY PROCESS

• Main Author: Rahmawati, Ayu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71784
• Institution: Institut Teknologi Bandung

Candra Remaja Batik is a traditional batik fabrics producer based in the City of Yogyakarta. Established in the 1960’s, it has been producing high quality classic Yogyakarta-style batik fabrics mainly known as ‘batik halus’ for the ‘Keraton’ and well-known batik boutiques in Yogyakarta Region. While it has been producing batik fabrics for many years, its sales revenue which comes from its regular customers has been declining for the last ten years. Moreover, COVID-19 has worsened the situation with many batik boutiques in Yogyakarta as its target customers closed due to the poor business climate. This brings forth the question of whether the value offered by the company through its offerings is still relevant to the market and what value can the company offer in novel ways not only to retains its customer base but also attracts new customers. In accordance, this study aims to identify the business conditions through factors exists in the internal business environment as well as external environment that may affect Candra Remaja Batik’s business. To analyze this situation, this research combined both qualitative and quantitative method by using the BMC framework along with the business model environment framework, the analytical hierarchy process (AHP), content analysis, SWOT analysis, and four actions framework analysis. Primary data is gathered from interviews and questionnaires to 20 batik boutiques in Yogyakarta. While secondary data is collected from news articles and publications. The study finds the need for adjustment in majority components of the business model canvas, from value proposition, value creation and delivery, as well as how to capture value from customers. From the AHP analysis, new value proposition was proposed and used as a point to derive adjustments on other aspects of the BMC. Product development is also seen needed for the company specifically in variance of batik motif designs and colors.