Blue Ocean Strategy in Promoting Sustainability of Batik SMEs: A Case Study of Wukirsari Yogyakarta

Abstract

The Blue Ocean Strategy is a business approach aimed at creating new, uncontested market space, thereby offering significant opportunities for entrepreneurs to innovate. This study aims to explore the strategies employed by UMKM Batik Wukirsari in developing its business and to examine the application of the Blue Ocean Strategy in the growth of the handmade batik creative industry. This research uses a descriptive qualitative method with a Blue Ocean strategic framework. The findings indicate that UMKM Batik Wukirsari has successfully applied the Blue Ocean Strategy, as reflected in several aspects, including enhanced product utility, price adjustment, cost efficiency, and the adoption of innovation in both production and marketing processes. Performance analysis from multiple perspectives—namely business, financial management, consumer (both potential and actual), and human resource empowerment—demonstrates the enterprise’s readiness to create untapped market space. The strategic plan implemented fulfills the three key characteristics of the Blue Ocean Strategy: focus, divergence, and a strong value proposition. Moreover, the four action framework—eliminate, reduce, raise, and create—has been applied with careful consideration of both potential and non-potential factors in developing the handmade batik industry as part of the local creative economy.