The intense competition between wooden handicraft Micro, Small and Medium Enterprises (MSMEs) in Indonesia has encouraged business owners to generate creative innovation in order to maintain the sustainability of the company. This study aims to develop the new product development strategy based on the product segment characteristics from wooden handicraft MSMEs in the Special Region of Yogyakarta, Indonesia. The segmentation of products was done by applying the combination of K-Means Algorithm and Frequency, Monetary, Customer Variety (FMC) variables to the customer transaction data. The results showed five different types of product sales characteristics in three wooden handicraft MSMEs. It will encourage business owners to gain valuable insights about useful product sales characteristics for building business strategies to face increasingly fierce competition in this era.
|IOP Conference Series: Materials Science and Engineering
|Published - 9 Sept 2019
|Joint Conference of the 6th Annual Conference of Industrial and System Engineering 2019, ACISE 2019 and 1st International Conference on Risk Management as an Interdisciplinary Approach 2019, ICRMIA 2019 - Semarang, Central Java, Indonesia
Duration: 23 Apr 2019 → 24 Apr 2019