Business Strategies Implementation to Enhance Competitive Advantage (A Study of Ikat Weaving in Bali)

This research is conducted with the background that there is a phenomenon of increasingly tight competition since the enactment of Asian Economic Community (AEC) in 2015. Therefore, all efforts, including Micro Small Enterprises (MSEs) sector of ikat weaving industry should anticipate by implementing appropriate business strategies so as to achieve competitive advantage. The objective of this research is to explain the role of business strategy (innovative strategy, differentiation strategy, service strategy, and partnership ) to enhance the competitive advantage in Ikat Weaving industry in Bali. To reach such objective, this research took a sample of 115 people who are owners or managers of SMEs in Ikat Weaving industry in Bali by applying Structural Equation Modelling (SEM) analysis. The results of the study showed that industrial competition has positive and significant effect on competitive advantage. Industrial competition has positive and significant effect to the implementation of the innovative strategy, differentiation strategy, service strategy, and partnership strategy. Likewise, innovative strategy, differentiation strategy, service strategy, and partnership strategy has positive and significant effect to competitive advantage. The four business strategies are able to enhance competitive advantage.The implications of the study contributes to the owners/managers of SMEs in Ikat Weaving industry in Bali to keep implementing business strategies consisting of innovative strategy, differentiation strategy, service strategy, and partnership strategy comprehensively to enhance competitive advantage. Keywords: industrial competition, business strategy and competitive advantage