Value Chain Analysis on SMEs Chips Product in Pematang Serai Village

DOI

10.2991/aebmr.k.210121.003How to use a DOI?

Keywords

Allocated Village Fund, Transparency, Accountability

Abstract

This paper aims to analyze the value chain and to identify activities that have the highest economic value-added to the chips that are owned by the Small and Micro Enterprises (SMEs) of Pematang Serai Village, Langkat District. Value chain activities analyzed include: 1) supply of raw materials; 2) production process; 3) product sales; 4) marketing, which of these activities will be identified as the highest economic value so that SMEs obtain information to increase competitive advantage. Data collection uses content analysis instruments and in-depth interviews. The data analysis technique used in this study are descriptive statistics and content analysis. The results showed that the main activities of SMEs in Pematang Serai Village consisted of: 1) the supply of raw materials (casava) obtained from their gardens and suppliers and cooking oil obtained from suppliers; 2) chips production process using cooking equipment and product packaging; 3) product sales are carried out directly in private stores and also consignment; 4) marketing is done conventionally by displaying it in stores, no marketing has been done digitally. Value chain analysis in the highest economy is in product sales activities, this is because the dominant entrepreneurs produce chips so that they become featured products that are marketed outside the region. The implications of the findings of this study are to obtain the gaps to improve competitive advantage by utilizing more optimal and massive digital marketing by SMEs in this area.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Fitri Yani Panggabean
AU  - Muhammad Bukhori Dalimunthe
AU  - Surya Asih
AU  - Ika Devi Perwitasari
AU  - Reza Aditia
AU  - Raudah Zaimah Dalimunthe
PY  - 2021
DA  - 2021/01/22
TI  - Value Chain Analysis on SMEs Chips Product in Pematang Serai Village
BT  - Proceedings of the Conference on International Issues in Business and Economics Research (CIIBER 2019)
PB  - Atlantis Press
SP  - 15
EP  - 19
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210121.003
DO  - 10.2991/aebmr.k.210121.003
ID  - Panggabean2021
ER  -