The rapid growth of private Islamic schools in Indonesia has intensified institutional competition, requiring educational foundations to develop distinct competitive advantages. This study examines how an Islamic full-day school in Batam City formulates, implements, and evaluates strategic management practices to achieve competitive advantage against alternative educational models, particularly boarding schools. Employing a qualitative case study design, data were collected through observations, in-depth interviews, and document analysis at SDIT Insan Harapan, a full-day school operated by the Harapan Ibu Kepri Islamic Education Foundation. The findings reveal that competitive advantage is achieved through an integrated differentiation strategy centred on the vision of “Qur’anic, Creative, and Entrepreneurial Generation (GEN Q’REN),” operationalised through: (1) integration of national and JSIT curricula; (2) systematic religious habituation; (3) flagship creative and entrepreneurial programs (Business Day, creative performances); and (4) consistent evaluation with parental involvement. The study demonstrates that full-day schools can compete effectively with boarding schools by optimising time, engaging parents systematically, and developing a distinctive institutional identity rather than simply replicating boarding school models. These findings contribute to the literature on Islamic school strategic management by providing an empirically grounded framework for differentiation strategy in full-day Islamic schools and offer practical guidance for educational foundations navigating competitive urban educational markets.
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