New Product Development In Small Industrial Embroidery Center In Tasikmalaya City - Indonesia

Abstract

New product development is an important strategy for the company to stay competitive. Some problems in the development of new products in SMEs are lack of managerial knowledge, lack of technical skills and financial resources. This also happen in small embroidery industry in Tasikmalaya City. Another problem is inavailability of formal procedure for new product development, which is required by the industry to be able to cope with external changes. The purpose of this research is to obtain an overview of the implementation of new product development process undertaken by small embroidery industry entrepreneurs in Tasikmalaya City. This research type is descriptive explorative by using inductive qualitative research method. The object of this research is the implementation of new product development process undertaken by small embroidery industry entrepreneurs. Sources of data for this study were entrepreneurs of small embroidery industry, local government and consumers. The results of this study indicate that there are lacking of new product development of small embroidery industry in Tasikmalaya City. Limited development of new products traced through the processes including concept-making, design selection, testing, and launching. This means that lack of comprehensive process implemented. Entrepreneurs of small embroidery industry in Tasikmalaya City more focus on responding to the request from market (customized) rather than developing new products and influencing market to accept those new products. Based on that findings, new product development of small embroidery industry products in Tasikmalaya City can utilize customer- oriented concept through creating and identifying customers need and desire.