Leveraging Value Chain Analysis to Drive Growth in the Muslim Fashion Industry: A Small and Medium Enterprise Strategy Case Study

Roland Y.H. Silitonga; Marla Setiawati; Eunike Novana Triutami; Ellen Indriati

doi:10.56741/esl.v2i03.398

Authors

Roland Y.H. Silitonga
roland@ithb.ac.id
Institut Teknologi Harapan Bangsa
Marla Setiawati Institut Teknologi Harapan Bangsa
Eunike Novana Triutami Institut Teknologi Harapan Bangsa
Ellen Indriati STIE Harapan Bangsa

Keywords:

Competitiveness, Modest Fashion, SME, Value chain analysis

Abstract

This article presents a comprehensive case study that utilises value chain analysis to analyse and develop strategies for small and medium enterprises (SMEs) operating in the Muslim fashion industry. The research addresses critical challenges facing SMEs in accessing the final market and proposes strategic solutions for all stakeholders involved in the value chain. The study adopts Kaplinsky's value chain analysis approach, complemented by quantitative tools such as SWOT and Diamond Competitiveness Analysis. The findings reveal that SMEs encounter four significant barriers to accessing the final market: economies, product characteristics, heavy promotion and advertising, and trading barriers. These barriers pose significant challenges due to internal limitations within the organisations. With these obstacles, a multifaceted strategy is proposed. The proposed plan includes the following key initiatives: (1) Segmentation of the target consumer base to optimise services, thus maximising penetration; (2) Strengthening collaborative partnerships between different actors within the value chain to enhance overall competitiveness; (3) Implementation of targeted promotion and communication programs to improve customer satisfaction and brand visibility; (4) Establishment of a comprehensive data recording system to streamline business processes and improve tactical decision-making; and (5) Investment in technological advancements within the production process to enhance product quality. By implementing these strategies, SMEs can effectively address the identified barriers and unlock their growth potential within the Muslim fashion industry. This case study contributes to the existing body of knowledge by providing practical insights and recommendations for SMEs operating in the Muslim fashion sector. The findings can guide policymakers, industry practitioners, and researchers in formulating effective strategies to foster growth and sustainability in this dynamic industry.

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Author Biographies

Roland Y.H. Silitonga, Institut Teknologi Harapan Bangsa

is a lecturer at Institut Teknologi Harapan Bangsa, Bandung, Indonesia. He holds a bachelor’s degree in mechanical engineering, a master’s degree in industrial engineering and management, and a doctorate degree in Industrial Engineering and Management, all from ITB (Institut Teknologi Bandung) Indonesia. Research focus: Inventory System, Innovation Management, Industrial Value Chain Analysis. (email: roland@ithb.ac.id).

Marla Setiawati, Institut Teknologi Harapan Bangsa

is a lecturer at Institut Teknologi Harapan Bangsa (ITHB), Bandung, Indonesia. He holds a bachelor’s degree in industrial engineering ITHB, a master’s degree in finance SBM ITB (Institut Teknologi Bandung), Indonesia. She is third year doctoral student in supply chain management, School of Business Management, ITB. Research focus: hospital supply chain management, digital financial inclusion, and management innovation. (email: marla@ithb.ac.id).

Eunike Novana Triutami, Institut Teknologi Harapan Bangsa

She earned her bachelor’s degree from Supply Chain Management, Institut Teknologi Harapan Bangsa. Eunike is currently pursuing her career in Product Management, as head of product in a startup company. In her career, Eunike explores several topics including Business Development, Product Design, and Basic Technology. (email: contact.eunike@gmail.com).

Ellen Indriati, STIE Harapan Bangsa

is a lecturer at Harapan Bangsa Business School, Bandung, Indonesia. She holds a bachelor's degree in accounting Universitas Padjadjaran Bandung, a master's degree in business management Universitas Katolik Parahyangan Bandung. Research focus: inventory, accounting management, general management, and business management. (email: ellenindriati@ithb.ac.id).

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