Effectuation Strategy and Niche Marketing for Competitive Advantage

Abstract

This research was conducted on batik craftsmen in East Java, Indonesia. Competitive advantage for batik craftsmen is an effort to upscale by aligning their positions with corporate ones. Strategies that can be taken as an effort to achieve competitive advantage for batik craftsmen are effectuation strategies and niche marketing, where these strategies explore and exploit internal and external resources. Batik craftsmen, with their limitations, must be smart in dealing with their business in order to survive and be successful. The effectuation strategy teaches to maximize the resources you have to minimize the risk of loss. Creativity, innovation is the key to the effectuation strategy. Meanwhile, niche marketing is a strategy to avoid competing in the general market, but to focus on specific markets with consumers with definite demands. The purpose of this study was to determine the effect of effectuation strategy and niche marketing on competitive advantage. Research with a quantitative approach, in regression, with data obtained through distributing questionnaires. The research population is batik artisans throughout East Java who are registered in the provincial government database and the sample is calculated using calculator.net. The results of the study show that there is a positive and significant effect partially between the effectuation strategy on competitive advantage and niche marketing on competitive advantage. While the dominant influence is on niche marketing to competitive advantage. This is because batik is a unique product, so the market is segmented and specialized. So that the niche market is more potential as a market for batik craftsmen.