<![CDATA[Purpose – This study aims to formulate the most appropriate strategy for Warkop Tarkam to achieve competitive advantage and respond to increasing competition in the café and restaurant industry in Malang City. Design/Methodology/Approach – This study employed a qualitative approach using a strategic management analysis framework. Data were collected through direct interviews with the owner and employees of Warkop Tarkam to identify internal strengths and weaknesses as well as external opportunities and threats. The strategy formulation process involved Internal Analysis, External Analysis, SWOT 4-K Matrix, IE Matrix, and Quantitative Strategic Planning Matrix (QSPM) to determine the most suitable strategic alternative. Findings – The results of the SWOT 4-K and IE Matrix analyses indicate that Warkop Tarkam is in a favorable business position. Based on the QSPM analysis, the recommended strategy is market penetration. This strategy can be implemented through various promotional activities, strengthening digital marketing through social media, organizing events, maximizing online food delivery platforms, and conducting market research to better understand consumer preferences. Originality/Value – This study contributes to small business strategic management literature by applying an integrated strategy formulation approach combining SWOT analysis, IE Matrix, and QSPM within the context of a local coffee shop business. The findings demonstrate how systematic internal and external environmental analysis can guide MSMEs in selecting effective strategies to strengthen competitiveness. Practically, this study provides strategic recommendations for Warkop Tarkam and similar businesses to optimize marketing activities and adapt to increasingly competitive market conditions.]]>
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