<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) play a significant role in the local economy; however, MSME development in Lumajang Regency still faces limitations regarding innovation, packaging, marketing, and digital technology proficiency. This study aims to formulate development strategies for MSMEs based on innovation and digital marketing to enhance competitiveness. A qualitative descriptive approach was employed, involving 30 MSME operators selected through purposive sampling. Data collection involved in-depth interviews, observation, and document analysis, with data validation ensured through triangulation techniques. Thematic analysis was conducted using SWOT analysis, the Internal Factor Analysis Summary (IFAS), and the External Factor Analysis Summary (EFAS). Study findings indicate that key MSME strengths include product diversity, high-quality taste, and the use of quality raw materials. Conversely, major weaknesses include a reliance on offline advertising, unattractive packaging, limited product information, and low digital technology proficiency. IFAS results highlight product quality and legal compliance as the most prominent internal factors. Meanwhile, EFAS results reveal opportunities such as packaging innovation, expansion of offline and online marketing, training in management and digital marketing, and the development of MSME platforms that are currently underutilized. The strategies developed encompass strengthening product and packaging innovation, enhancing brand recognition, improving digital marketing skills, expanding market channels, and providing continuous mentoring to transform local product advantages into business competitiveness.]]>
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