Encouraging value innovation by adopting the blue ocean strategy in a Batak Karo fabric business
List of Authors
  • Rina Djunita Pasaribu , Thifani Adella Batubara

Keyword
  • Value innovation, Blue Ocean Strategy (BOS), Batak Karo fabric business

Abstract
  • The tradition of Batak Karo fabric production has been undertaken for a long time, with many businesses in existence for multiple generations, as is the case with the trade business UD Batik Bintang HS (BBHS). Competition in this trade is extremely intense, with many companies degrading and going out of business. Innovation of new value is needed to advance businesses’ efforts to survive and thrive. In addition to the Red Ocean Strategy, in existing business arenas, the Blue Ocean Strategy (BOS) can be adopted to support such efforts. This study aimed to boost value innovation at BBHS by introducing the BOS, presenting a novel research contribution by examining a Batak Karo fabric business using a descriptive qualitative method. Interviews were used for data collection, and the credibility of the data was validated through triangulation of the data sources. Respondents included three internal employees, three customers, and three suppliers, totaling nine participants. Data analysis applied stages of reduction, display, and conclusions/verification. The discussions were engaged using the BOS constructs of strategy canvas, 4-action framework, and BOS formulation. The research results revealed two notable strategies in value innovation. First, new value innovation can be inspired by entering the supplier industry through innovation in fabric raw materials by lowering yarn density, resulting in lower consumer price without affecting quality. Second, innovation strategies included new cloth colors and motifs that dare to go beyond common customs without violating traditional standards. Both strategies represent new value innovations to attract new customers and retain existing customers. From a research perspective, this study contributes novel evidence that the BOS can be applied to broaden perspectives and identify new value innovations in traditional Batak Karo fabric businesses, with potential applicability to a broad range of traditional textile enterprises.

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