COMPETITIVE STRATEGIES OF THE BAMBOO WOVEN HANDICRAFT INDUSTRY IN INDONESIA'S CREATIVE ECONOMY: PORTER’S FIVE FORCES ANALYSIS

Abstract

The handicraft industry is a crucial subsector of Indonesia’s creative economy, combining cultural value, creativity, and significant economic potential. This study aims to analyze the development of the handicraft industry, specifically bamboo weaving, using Porter’s Five Forces, Driving Forces, and Key Success Factors (KSF) approaches. The method employed is a descriptive-qualitative approach. The analysis reveals that this industry is undergoing a transformation toward modernization through design innovation, digitalization, and sustainability trends. The macroenvironment presents opportunities through government support and shifts in public lifestyle toward valuing eco-friendly products. However, the Five Forces analysis reveals challenges such as the high threat of mass-produced substitute products and intense competition from countries like China and Vietnam. Additionally, internal constraints such as limited access to capital, inconsistent product quality, and a lack of young artisans remain major obstacles. This study concludes that the key factors for the success of the bamboo weaving industry lie in strengthening design innovation, ensuring product quality consistency, utilizing digital platforms, and developing industrial clusters. Synergy between community empowerment and business strategies rooted in local wisdom is essential to enhance the competitiveness of Indonesian handicrafts in the sustainable global market.