ANALYSIS OF DIGITAL TRANSFORMATION IN MSME MARKETING STRATEGY AS AN EFFORT TO IMPROVE COMPETITIVENESS IN LOCAL AND GLOBAL MARKETS

Abstract

Digital transformation has become one of the key factors in business development in the era of globalisation, including for Micro, Small and Medium Enterprises (MSMEs) in Indonesia. In the face of changing consumer behaviour, the development of information technology, and competitive pressure from global businesses, MSMEs are required to not only survive, but also be able to adapt strategically. One of the most crucial forms of adaptation is the integration of digital technology into marketing strategies. This study aims to examine how digital transformation is applied in the marketing strategy of MSMEs, as well as the extent to which its application contributes to increasing business competitiveness in local and global markets. The method used is a descriptive qualitative approach with data collection techniques through observation of popular MSME social media accounts such as @maicih and @sambalbakar.id. The results showed that the use of social media such as Instagram and TikTok, the utilization of e-commerce such as Shopee and Tokopedia, and a consistent content strategy can significantly increase brand visibility, consumer reach, and sales. In addition, it was found that the adoption of digital technology helped MSMEs to accelerate customer service processes and expand market segmentation. Challenges include limited digital literacy, human resource shortages, and low data analytics capabilities that hinder the development of consumer-driven strategies. Therefore, a more holistic approach to implementing digital marketing as part of MSME business strategy is needed, including ongoing training and mentoring. This research recommends synergy between MSME players, government, and technology providers so that digital transformation can run effectively and encourage MSMEs to compete not only at the local level, but also at the global level