Porter’s Five Forces Analysis for MSME Development Strategies; A Case Study of the Bakso Meletup MSME

Abstract

This study aims to analyze the competitive environment and formulate development strategies for the Bakso Meletup micro, small, and medium enterprise (MSME) using Porter’s Five Forces framework. This research employed a descriptive qualitative approach, with informants selected purposively, including the business owner, employees, suppliers, and consumers. Data were collected through observation, interviews, and documentation and analyzed descriptively. The findings indicate that rivalry among existing competitors is high, driven by the large number of similar culinary businesses in Palembang. The threat of substitute products is also high, as consumers can easily access alternatives such as chicken noodles, seblak, cilok, and cimol at relatively lower prices. Buyer bargaining power is moderate, because consumers can switch to cheaper alternatives, although Bakso Meletup’s distinctive menu and bulk-purchase options help maintain customer interest. Supplier bargaining power is high, primarily because the business depends on a single supplier for its main raw material, beef, giving the supplier considerable influence over raw material prices. Based on these findings, the recommended strategies include strengthening product differentiation, improving service quality, optimizing digital marketing, building customer loyalty, and developing alternative supplier relationships to support business competitiveness and sustainability