Village Economics Acceleration: Evaluation of Business Strategy Schemes in The Retail Business

Mega Barokatul Fajri; Rizky Wahyudha Rosiawan; Jennifer Farihatul Bait

doi:10.54268/baskara.v7i2.24231

Village Economics Acceleration: Evaluation of Business Strategy Schemes in The Retail Business

Mega Barokatul Fajri, Rizky Wahyudha Rosiawan, Jennifer Farihatul Bait

Abstract

Lamongan Regency's economic growth in 2020 has decreased from 5.5 percent to -2.26 percent, so that the district government tried to boost the regional revenue growth rate through BUMDes (Village Owned Enterprises). The Village Community Empowerment Service (PMD) initiated the establishment of LA Mart as a local retail store business managed by BUMDes in 2018. The existence of LA Mart is a strategic step to accelerate the movement of the village economy. Among the many LA Marts that have been established since being initiated in 2018, there are only five LA Marts that have survived and exist throughout Lamongan district today. This study aims to evaluate the current business strategy of LA Mart and provide solutions in the form of updating relevant strategies by LA Mart. Data collection methods used in this research include interviews, document analysis and observation. The data analysis used is a qualitative descriptive analysis by evaluating and comparing the strategies that have been used, using a business strategy approach including Business Model Canvas (BMC), Value Chain and Porter’s Five Generic Strategy at LA Mart in Lamongan. The results of this study showed that the current LA Mart business has used a combination strategy between low prices and differentiation strategies. LA Mart can indirectly increase the marketshare of the village economy and provide opportunities for the community and MSMEs to innovate to produce products that are competitive in the market.

Keywords

Value chain strategy, canvas business model, five generic porter’s, LA Mart, BUMDes

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DOI: https://doi.org/10.54268/baskara.v7i2.24231

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