Determination of Competitive Strategy of MSMEs "Sari Kedelai" and "Sule Firanty" Lumajang using BCG Matrix

This study aims to determine the appropriate competitive strategy for two soy milk producing MSMEs in Lumajang Regency which is the scientific responsibility of the researcher. Both MSMEs have been operating for more than ten years but show limitations in market growth and relative market share. The method used in this study is a quantitative approach with the help of BCG Matrix analysis and Porter's generic strategy theory. Data was obtained through observation, simple financial data analysis, and semi-structured interviews with MSMES owners. The results of the study show that both MSMEs are in the Dog quadrant of the BCG Matrix, but still have stable cash flow and loyal customers. Therefore, the right competitive strategy is not liquidation or divestment, but rather a survival strategy such as focus, cost efficiency, and contextual light differentiation. With Porter's generic strategy analysis, both MSMEs chose the focus and differentiation strategies. The researcher concluded that a competitive strategy based on real conditions and an interpretive approach is more relevant to be applied to MSMEs. The researcher also recommends that a personal and adaptive approach be used in developing small business development strategies, especially for MSMES owners who have limited large-scale competitiveness.