<![CDATA[Digital transformation has changed marketing patterns in Micro, Small, and Medium Enterprises (UMKM), including bakery businesses that are required to be able to adapt to changes in consumer behavior and market competition. This study aims to analyze digital marketing transformation based on dynamic capabilities in building a competitive advantage at Izzi Bakery in Kraksaan District, Probolinggo Regency. The research uses a qualitative approach with a case study design. Data was obtained through semi-structured interviews, observations, and documentation, then analyzed using the interactive model of Miles, Huberman, and Saldaña through the stages of data condensation, data presentation, and conclusion drawing and verification. The results of the study show that digital marketing transformation at Izzi Bakery takes place through three dimensions of dynamic capabilities, namely sensing, seizing, and reconfiguring. Sensing is done by observing TikTok trends and consumer responses, seizing is realized through the use of TikTok as a promotional medium and product introduction, while reconfiguration is done through content adjustments and marketing strategies. This transformation contributes to the expansion of marketing reach, product introduction, and interaction with consumers. Competitive advantage does not solely come from the use of TikTok, but from the ability of businesses to integrate technology with resources and strategies in an adaptive manner.]]>
