BUSINESS STRATEGY FORMULATION IN THE ERA OF THE COVID-19 PANDEMIC THREAT THROUGH THE SWOT CORRELATIVE INTERPRETATION AND QSPM APPROACH IN SMEs BASED ON LOCAL WISDOM

Abstract The purpose of the research is to formulate the business strategy of SMEs Weaving Craft based on local wisdom by adapting to the environmental changes due to the COVID-19 pandemic. This research is a descriptive study based on qualitative data. Data were obtained through indepth interviews with 10 informants. Furthermore, the data from the informants were confirmed to 54 respondents who owned SMEs. SWOT Correlative Interpretation and Quantitative Strategic Planning Matrix (QSPM) approach were used to data analysis. Alternative business strategies will be generated in order according to the priority scale by QSPM approach. The findings of this study, at the input and matching stage through IFE, EFE, SWOT Correlative Interpretation and IE Matrix analysis shows that SMEs still have the potential to grow. Through the IE, position of the SMEs in sel hold and maintain, and the opportunities that exist for SMEs International Journal of Economics, Commerce and Management, United Kingdom Licensed under Creative Common Page 247 are potential and threats are real. At the decision stage through the SWOT Matrix and QSPM can be formulated 11 alternative business strategies for SMEs, derived from market penetration, product development and market development strategy. The conclusion of the study, that the Correlative Interpretation SWOT approach, is an approach that can reduce the weakness of conventional SWOT conclusions. QSPM complements conventional SWOT studies that produce business strategies based on priorities Keywords: Business Strategy, SWOT Correlative Interpretation Analysis, QSPM, SMEs Base on Local Wisdom