Competitive analysis and product development in an herbal medicine MSME: A Porter's Five Forces and Market Sensing Capability perspective
DOI:
https://doi.org/10.30871/jaba.13429Keywords:
Consumer Attractiveness, Product Development Strategy, Market Sensing Capability, Porter's Five ForcesAbstract
This study examines product development planning strategy supported by market sensing capability in relation to perceived consumer attractiveness at Dapoer Niswah Herbal Jamu MSME. The study uses a descriptive qualitative case-study approach through interviews, observation, and documentation, with the competitive environment examined using Porter's Five Forces. The findings indicate that competitive pressure is reflected in ease of entry, consumer choice, substitute products, supplier conditions, and rivalry among competitors. Dapoer Niswah responds through product diversification, herbal tea bags, powdered and dried herbal products, herbal param, Coffee Jamu, packaging improvement, and digital marketing. Market sensing is carried out through customer communication, sales evaluation, bazaar activities, and observation of trends and competitors. Internal revenue increased from IDR 217,263,000 in 2024 to IDR 227,246,000 in 2025 (4.59%); however, this figure is not interpreted as evidence of effectiveness because no cost/profit benchmark or external comparison was available. The novelty lies in integrating a Porter-based competitive analysis with market sensing and product-development planning in a single herbal jamu MSME case. The study is limited to one MSME and management-side informants; no direct consumer survey or consumer interview was conducted. The practical implication is that jamu MSMEs should formalize market-information collection and link it to product-development decisions, especially regarding practicality, packaging, product differentiation, and consumer needs.
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