ANALYSIS OF SME THROUGH BUSINESS MODEL CANVAS (BMC) APPROACH: WHAT IS THE POTENTIAL OPPORTUNITY FOR ORANGE BUTTON IN THE DISCRUPTION ERA?

Abstract

Orange Button (OB) is a family business produced apparels for kids in Bandung since 2013. In conducting the business, OB only predicts the level of production and sales based on experience of previous period, since the beginning of the establishment of the OB. For example, every month OB produces as many as 5000 pieces while two months before the big celebration, OB produces 18000 pieces. This number is used as the amount of production by OB by relying on simple predictions. But actually this apparel company has greater opportunity in the market. This research aims to find, explore and analyze the potential opportunities based on SWOT analysis and Business Model Canvas approach. This research collected data primary from owner and staff of OB through deep interview with structured questions. This research used qualitative research methodology and explored SWOT and BMC as the main approaches, consist of variables: customers’ relationships, customers segments, key activities, key partners, key resources, value propositions, revenue streams, channels and cost structure. Based on the SWOT analysis, the greatest strength is the possibility to add or complete existing services. Weaknesses in the ease of resources are imitated by competitors. Opportunities lie in the possibility of increasing margins by directly serving customers. The threat faced is substitution. Based on the BCG approach, the researcher gave a new business recommendation for OB, which is adding customization products that are sold via online so that it has an impact on increasing customer segmentation and revenue for the OB Company.