Model Scenario to Increase Market Share and Profitability of MSMEs through Business Process Digitalization

MSMEs are business activities owned by individuals or business entities and have a very large contribution to the economy of a country at a macro level. As various needs of the community become increasingly diverse, the number of MSMEs in Indonesia is also increasing and developing in various fields. One of them is Sari Nikmat frozen food business, located in Malang, East Java. Based on interviews with the MSME, the problem faced now is how to increase market share and profitability. This study aims to build a system dynamics model to help MSMEs to increase market share and profitability through social media marketing scenario. The choice of a system dynamics method in developing a model is based on the consideration that system dynamics can accommodate non-linear relationships between internal and external variables that affect system performance. The results of this study are model scenario that can be used as a long-term strategy by MSMEs to increase market share and business profitability.