Building a Competitive Strategy Model in Improving Business Performance of Processed Food Businesses in Badung District

Abstract - The problem faced by food-processed SMEs in Badung Regency in the last three years is the decline in business performance, especially after the Covid 19 Pandemic and the emergence of new competitors. This research aims to build a competitive strategy model (partnership strategy) to improve the business performance of food-processed SMEs in Badung Regency. This research uses a quantitative approach with 31 respondents of processed food SMEs in Badung Regency taken using the census method. The research instrument was tested for validity and reliability, and the data analysis technique used descriptive statistical analysis and inferential statistics (SEM-PLS). The results showed that the intensity of competition has a negative and significant effect on business performance, meaning that the higher the intensity of competition, the lower the business performance. Digital marketing has a positive and significant effect on business performance, meaning that high use of digital marketing causes high business performance. Competitive strategy can partially mediate between the intensity of competition and digital marketing on the business performance of food-processed SMEs in Badung Regency.

Keywords - Phrases competitive intensity, Digital marketing, Competitive strategy, Business performance.