Alignment Of Business Model With Competitive Strategy: A Study On Micro Business Teefees Collection

Abstract

The emergence of digital technology, driven by the Covid-19 pandemic, has significantly affected the landscape of Indonesia's fashion industry. The accessibility of digital tools like the internet, social media, and artificial intelligence has led to the rise of new entrants in the market. These tools facilitate various aspects such as product design, supplier identification, marketing, sales, and overall business management. Nevertheless, there have been instances of businesses struggling to endure and eventually shutting down. Consequently, businesses are compelled to develop strategies to navigate the competitive arena and the rapidly evolving business environment. Competitive strategy, as conceptualized by Michael E. Porter, offers a framework for businesses to confront competition. It encompasses three primary approaches: differentiation, cost leadership, and focus. The chosen competitive strategy influences the alignment of the business model. Teefees Collection, a player in the fashion sector, similarly requires competitive strategies to navigate the changing environmental conditions and competitive pressures. This study aims to guide Teefees Collection in crafting competitive strategies and their business model, leveraging environmental assessments, encompassing both macro and industry perspectives through STEEP analysis and Porter's Five Forces framework. The collection of data is accomplished through interviews with internal and external stakeholders, alongside a review of pertinent literature. The analysis underscores the suitability of the differentiation strategy for Teefees Collection. Consequently, recommendations for a business model that dovetails with this differentiation strategy are formulated.