International Journal of
Information and Education Technology

Abstract

Small and medium enterprises (SME) hold an important role in developing a country’s economy. However, many SMEs failed to stay in competition due to a handful of problems, including capital shortage, marketing difficulties, etc. A good choice of strategies will contribute to the SMEs survival, thus strategic management is needed. Strategic position analysis and strategy prioritization is conducted in this research. The SPACE Matrix is used to map SME into one of these quadrants: aggressive, conservative, defensive, or competitive. Strategy prioritization is done using QSPM, and the result shows the most attractive strategy to the least attractive for the SME are as follows: adding new product variants; expanding sales area; developing new natural stones products; holding promotional events and placing advertisement; business diversification by opening unrelated new product lines; selling directly to end users; assigning market representatives; acquiring or holding a joint venture with smaller SMEs; and integrating with suppliers.