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The Strategy for Increasing the Competitiveness of Craft Products in the City of Palu, Central Sulawesi, Indonesia

This study aims to establish a strategy to improve the competitiveness of Palu handicraft products. The prospect of handicraft industry of Palu is quite good considering that there are various and abundant resources. However, handicraft industry in Palu has currently not the host of its own country. The dominance of other regional craft products is still high in urban handicraft market. Local government should strengthen the competitiveness of Palu’s handicraft products through systematic and integrated planning. This study uses SWOT analysis based on the four-quadrant strategies. The data was collected through interviews and FGDs involving business actors and local government elements. The results of the weighting and scoring show that the opportunities of Palu’s handicraft industry are more than its threats, but its weakness is greater than its strengths. The intersection of internal and external factors in the SWOT quadrant shows that Palu’s handicraft industry is in Quadrant II, or in stability strategy. The implementation of activities is still carried out following the existing rules. Turnaround strategy is necessary while making internal improvements and looking for opportunities (guerilla strategy). It allows the advancement of internal weaknesses in maintaining the existing and aggressive roles. The industry must also selectively carry out their programs whenever possible.