<![CDATA[This study aims to analyze innovation strategies in enhancing business competitiveness at DIN’S SALON STUDIO in Karangjati. The research employs a qualitative approach with a case study design to gain an in-depth understanding of innovation implementation in the context of service-based businesses. Data were collected through in-depth interviews, observations, and documentation involving key informants, including the business owner, manager, employees, and customers, selected using purposive sampling. Data analysis was conducted using an interactive model consisting of data reduction, data display, and conclusion drawing. The findings reveal that the implemented innovation strategies include service innovation, process innovation, digital marketing innovation, and customer-based innovation. Although the innovations are incremental in nature, they significantly improve service quality, customer satisfaction and loyalty, and create business differentiation in a highly competitive market. Internal factors such as human resource competence, employee creativity, and leadership play a crucial role in driving innovation, while external factors such as digital technology development, market competition, and changing customer preferences influence the effectiveness of innovation strategies. The study concludes that customer-oriented innovation strategies supported by digital technology utilization are key to enhancing the competitiveness of service-based SMEs.]]>
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