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Entrepreneurial Marketing Analysis using Swot Analysis Method (Case Study of MSMEs Warung Tegal Embu – Kedungwaringin District, Bekasi Regency)

  • Ali Hanafi
  • Dikka Safriyanto
  • Ghenni Puja Whardana
  • Rizqi Adji Ramdani
  • Tri Ngudi Wiyatno
  • 800-811
  • Jun 4, 2024
  • Business Management

Entrepreneurial Marketing Analysis using Swot Analysis Method (Case Study of MSMEs Warung Tegal Embu – Kedungwaringin District, Bekasi Regency)

Ali Hanafi, Dikka Safriyanto, Ghenni Puja Whardana, Rizqi Adji Ramdani, Tri Ngudi Wiyatno

Industrial Engineering Study Program, Faculty of Engineering, Pelita Bangsa University, Jl. Inspection Kali Malang No. 9 Cibatu Village, South Cikarang District, Bekasi Regency, West Java (17530)

DOI: https://dx.doi.org/10.47772/IJRISS.2024.805059

Received: 17 April 2024; Revised: 30 April 2024; Accepted: 04 May 2024; Published: 04 June 2024

ABSTRACT

Micro, Small and Medium Enterprises (MSMEs) are a form of small and medium scale economic movement carried out by individuals independently in society, MSMEs role an important role in turning the wheels of the community’s economy, innovation in food products that have regional flavors is unique in its own right. There is widespread business competition in the culinary sector, one of which is food stalls from the Tegal – Central Java area which are often called warteg, this term has developed and has become its own attraction and has become a characteristic of the existence of these food stalls, despite the business competition. strictly requires innovation and improvement in marketing and service quality in order to increase sales and be able to compete in the food business. The purpose of this research is to determine the biggest opportunities that can be exploited to develop and compete in business and to find effective marketing strategies. To achieve this goal, researchers use the SWOT Analysis method which can analyze the strengths, weaknesses, opportunities and threats that exist in the business, from the analysis carried out. The results obtained in the form of advantages that can be utilized by Warung Tegal Embu MSME entrepreneurs lie in Strength or power. So from these results it is hoped that entrepreneurs can take advantage of the advantages they have to achieve goals and solve problems faced by entrepreneurs.

Keywords: Micro, Small and Medium Enterprises (MSMEs), Marketing Strategy, SWOT Analysis.

ADVANCE

Based on the Law of the Unitary State of the Republic of Indonesia No. 20 of 2008, Micro, Small and Medium Enterprises (MSMEs) are productive businesses owned by individuals and / or individual business entities that meet the criteria for micro enterprises as regulated in this law, the existence of MSMEs has been regulated in law which is also protected by the state as one of the driving wheels of the economy in Indonesia. The culinary sector is one form of MSME implementation in Indonesia, culinary business forms can be in the form of finished food, snacks, side dishes, drinks and so on.

Among the many forms of culinary MSME variations, there is one business branch that is commonly found among the community, the business sector is warung tegal or often referred to as warteg, based on data from the Bdan of the West Java Provincial. Statistics Center, there are 176 food stalls in Bekasi Regency in 2018. Warteg is generally a food stall that carries the concept of a rice sales shop with various types of side dishes so that customers who buy can easily choose a variety of menus offered, generally home-cooked dishes offered with staples in the form of fish, chicken and vegetables processed with typical flavors of the Tegal-Central Java region. Of the many warteg businesses in Bekasi – West Java regency, there is a warteg that is the location of research, namely warteg embu located in Kedungwaringin District, Bekasi Regency, warteg which has been established since 2014 carries the concept of typical food stalls in the Tegal area that operate every day.

Research on the analysis  of Entrepreneurial Marketing strategies  on competitive advantage and marketing performance for MSME players conducted by Febriyantoro & Bahar (2019) on MSME players in Batam City, the results of the study show  that entrepreneurial marketing has a positive influence on competitive advantage with variables tested including concepts, strategies, methods, and market intelligence. Warteg embu MSMEs themselves have many competitors around them, therefore entrepreneurial marketing strategies are needed to overcome internal and external problems owned by entrepreneurs, therefore the author is interested in observing case studies on how SWOT analysis can create entrepreneurial marketing strategies carried out by warteg embu MSMEs.

STUDENT LITERATURE

MSMEs

According to Tambunan (2012) in Kurniawati (2020), MSMEs (Micro, Small and Medium Enterprises) are productive businesses that stand alone and are operated by individuals or Business Entities in all economic sectors. Types of Small Enterprises (UK), Micro Enterprises (UMi), Medium Enterprises (UM), and Large Enterprises (UB) can be distinguished based on the value of initial assets and the amount of average income per year and the number of permanent workers. MSMEs have been regulated and protected by law no. 20 of 2008.

Based on an article published by Penggaron Lor Village, Semarang City, Central Java Province (2024). The characteristics of MSMEs include:

  1. The type of commodity / goods in the business is not fixed, or can change at any time.
  2. The place to run the business can move at any time.
  3. His business has not implemented administration, even personal finance and business finance are still unified.
  4. Human resources (HR) in it do not have a qualified entrepreneurial spirit.
  5. Usually, the level of human resource education is still low.
  6. Usually, MSME players do not have banking access, but some already have access to non-bank financial institutions.
  7. In general, they do not have a business license or legality, including NPWP.

Marketing Strategy

A marketing strategy is a plan designed to achieve the marketing goals of a business or product. It involves identifying target markets, understanding consumer needs and wants, and developing tactics to reach and influence those markets. Marketing strategy also involves determining how resources such as time, money, and labor are allocated to achieve desired results.

According to Irda Yanti Musyawarah (2022), Marketing strategy is a form of planning found in the field of marketing. In general, marketing is a social process by which individuals and groups obtain what they need and want by creating and exchanging products and value with other individuals and groups. In a broader sense, marketing seeks to elicit a response to an offer.

According to Assauri (2013: 15) in Irda Yanti Musyawarah (2022), “Marketing strategy is a set of goals and objectives, policies and rules that guide a company’s marketing efforts over time, at all levels and references and allocations, especially the company’s response to the ever-changing competitive environment and conditions”.

Entrepreneurship

Entrepreneurship can be defined as the process of creating, developing, and managing a new business or innovation in an existing business with the aim of earning a profit. Entrepreneurship involves identifying opportunities, developing ideas, taking risks, as well as implementing strategies to effectively manage resources to achieve business success.

Thomas W. Zimmerer (1996; 51) in Rintan Saragih (2017) revealed that entrepreneurship is a process of applying creativity and innovation to solve problems and look for opportunities that everyone faces in everyday life.

Thomas W. Zimmerer et al (2005) formulated the benefits of entrepreneurship as follows:

  1. Provides opportunity and freedom to control one’s own destiny.
  2. Providing opportunities for change: Business people find ways to combine their concern for various economic and social issues with the hope of living a better life
  3. Providing opportunities to reach one’s full potential
  4. Having your own business gives power, spiritual awakening and makes the entrepreneur able to follow his own interests or hobbies.
  5. Have the opportunity to achieve optimal profits
  6. Has the opportunity to play an active role in society and gain recognition for his efforts.
  7. Have the opportunity to do something you love and foster a sense of pleasure in doing it

SWOT Analysis

SWOT Analysis is an analytical method used in business to evaluate the strengths, weaknesses, opportunities, and threats faced by a company or project. This method helps in understanding the competitive position of a business in the market as well as identifying internal and external factors that can affect its performance and success.

According to Annisa Mayang Indri (2020), SWOT Analysis is the systematic identification of various factors to formulate company strategies, this analysis is based on logic that can maximize strengths and opportunities, but simultaneously can minimize weaknesses and threats. (Rangkuti, 2006). This analysis is based on the assumption that an effective strategy will maximize existing strengths and opportunities and minimize weaknesses and threats. When applied accurately, this simple assumption has a profound impact on the design of a successful strategy and analysis of the business environment that provides the information needed to identify opportunities and threats within the company.

IFE Matrix and EFE Matrix

According to Kustiawati (2013), the Internal Factor Evaluation (IFE) Matrix is a strategy formulation tool used to summarize and evaluate key strengths and weaknesses in business functional areas, and also provides a basis for identifying and evaluating relationships between these areas (David, 2006).

While the EFE Matrix is used to evaluate external factors that affect company performance. It includes opportunities and threats emanating from the external environment, such as market trends, industry competition, changes in government regulations, and demographic factors. The EFE matrix assigns weight to each external factor and measures how significantly it affects the company’s performance. Like the IFE Matrix, the value assigned to each factor can be positive or negative, depending on how much of an impact it has on the company’s performance.

According to Sulasih (2019), the EFE (External Factor Evaluation) matrix is one of the matrices that helps companies analyze external environmental factors. In the EFE matrix, external environmental factors are divided into 2 key factors, namely opportunities and threats. This matrix provides a place for strategists to summarize and evaluate information about thecompany’s external environment.

RESEARCH METHODS

Descriptive Analysis was used in this study.Descriptive analysis was generated based on observation and direct interviews in the field. Descriptive analysis is an analysis in the form of elaboration of writing without calculating numbers (Sulistyo, 2017). While the research method used in this study tends to be qualitative research methods, where the data described is not in the form of numbers but rather emphasizes verbal elaboration based on information generated from interviews conducted with experienced sources and located or directly involved in the work area and data recorded based on events that occur in the MSME location environment.

While the method carried out in this research is SWOT Analysis, by using SWOT Analysis researchers can analyze the strengths, weaknesses, opportunities and threats that exist in case studies that occur in warteg embu MSMEs. The main purpose of using SWOT analysis is to raise awareness related to the factors used to make business decisions as well as establish business strategies.

In general, the SWOT Analysis method is used by business people to analyze the strengths, weaknesses, opportunities and threats that exist in the business. SWOT Analysis was invented by Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

To find out the stages of research, can be seen in figure 1.

Figure 1 Stages of Research

In the next stage, researchers explained the data obtained based on the interview process and direct observation of warteg embu MSMEs using the SWOT Analysis method.

RESULTS AND DISCUSSION

This research focuses on the problems faced by warteg embu MSMEs, namely marketing strategies that have not been maximized and competitiveness that occurs in the local sector around the warteg embu MSME location area. In order to explain the actual conditions that occur in the field, it is described in the initial identification as follows:

Early Identification

This MSME focuses on culinary businesses that raise regional flavors. Warteg Embu were established in 2014 and have one employee. This MSME has been established for 10 years and has experienced various conditions of ups and downs in business, even though Mr. Dosih as the owner of this MSME still survives and continues to strive to develop his business for the better by prioritizing customer satisfaction and product quality.

Picture 2 Warteg Embu MSMEs

Business Analysis of Internal and External Conditions of Warteg Embu MSMEs

Internal Environmental Conditions

Internal environmental analysis is carried out to determine the strengths and weaknesses possessed by warteg embu MSMEs, factors that affect the internal environmental conditions of warteg embu MSMEs include management, marketing and financial factors, which are described as follows:

A. Management

Management plays an important role and key in carrying out business and business.Just like business management needs careful planning and strategy, but the actual conditions in the field in warteg embu MSMEs do not have a good and mature management planning system.It is often found that planning for the selection of daily menu lists is carried out suddenly one day before shopping so that it hampers the course of business processes.

B. Marketing

Marketing carried out by warteg embu MSMEs is fairly good, carried out by 2 methods, namely directly and online, the form of promotion is carried out directly using banner and banner media as a medium of information on the existence of business locations and colonized products and online promotion is carried out by utilizing social media networks and spreading business contacts to buyers who intend to become regular customers to be able to order through Cellular phone. Marketing research is a research conducted in the form of collecting, recording and analyzing systematic data on various problems related to service or product marketing techniques. Marketing research conducted by warteg embu MSMEs has not been fully carried out correctly, the research carried out has not met the criteria of the target customers who are targeted in the business.

C. Finance

Finance is one of the important aspects in carrying out MSME activities in warteg embu, the financial resources owned come from personal capital that is managed by taking into account the aspects of profit and loss in carrying out business activities, but becomes limited in developing business activities due to limited capital sources.

SWOT Analysis

Based on the results of data collection collected through an interview process with warteg embu MSME owners, several factors can be identified in analyzing SWOT which are described as follows:

1. Strength

  1. The price offered is cheaper than competitors around the warteg embu MSME area.
  2. The menu offered varies and there is a fixed menu that is the flagship in warteg embu MSMEs.
  3. Prioritize customer satisfaction.
  4. Pay attention to the quality of materials and products colonized to consumers.

2. Weakness

  1. Lack of technological devices owned.
  2. Lack of marketing management knowledge and unavailability of online distribution.
  3. There is a certain time when people’s purchasing power decreases, namely the waiting time for large rice for workers with a farmer background.
  4. There are limited working capital.

3. Oportunity

  1. Society is dominated by workers, laborers, and peasants who have little time to cook food before and after work.
  2. Support from the government such as people’s business credit (KUR).
  3. The marketing network is quite extensive as evidenced by consumers who come from outside the village and sub-district areas.
  4. Follow the development of information technology that exists today.

4. Threats

  1. There is a similar business around the warteg embu MSME location area.
  2. The existence of a business that raises the theme of modernization and colonizing junk food as its mainstay menu so that the existence of warteg embu MSMEs is less attractive to young people.
  3. The price of raw materials is often fluctuating.

Table 1. SWOT Analysis of Warteg Embu MSMEs

INTERNAL

 

 

EXTERNAL

Strenght

a. The price offered is cheaper than competitors around the warteg embu MSME area.

b. The menu offered varies and there is a fixed menu that is the flagship in warteg embu MSMEs.

c. Prioritize customer satisfaction.

d. Pay attention to the quality of materials and products colonized to consumers.

Weakness

a. Lack of technological devices owned.

b. Lack of marketing management knowledge and unavailability of online distribution.

c. There is a certain time when people’s purchasing power decreases, namely the waiting time for large rice for workers with a farmer background.

d. There are limited working capital.

Oportunity

a. Society is dominated by workers, laborers, and peasants who have little time to cook food before and after work.

b. Support from the government such as people’s business credit (KUR).

c. The marketing network is quite extensive as evidenced by consumers who come from outside the village and sub-district areas.

d. Follow the development of information technology that exists today

S-O

a. Maintain the quality of service and the quality of products owned.

b. Expanding marketing networks and utilizing social media more massively.

c. Improve the performance of MSMEs and can collaborate with material suppliers and MSME actors with similar interests and business channels.

W-O

a. Make a budget plan and emergency savings fund plan as a medium to maintain business capital.

b. Participate in guidance programs from the government and private sector to improve knowledge of MSME business management.

c. Creating a variety of products and services that keep up with the times but still raise the taste of the region.

Threats

a. There is a similar business around the warteg embu MSME location area.

b. The existence of a business that raises the theme of modernization and colonizing junkfood as its mainstay menu so that the existence of warteg embu MSMEs is less attractive to young people.

c. The price of raw materials is often fluctuating.

S-T

a. Improve the quality of products and services to be able to compete with similar MSMEs.

b. Establish cooperation agreements with suppliers who can be trusted by considering capital and quality.

c. Maintain competitive prices and product quality.

d. Optimizing MSME operational activities.

W-T

a. Having a second supplier to minimize the risk of delays and deadlocks due to price increases and scarcity of raw materials.

b. Understand and practice business management.

c. More massive promotion increase.

EFAS and IFAS matrices

In this study, researchers conducted a SWOT analysis to identify data that had been obtained from the results of the study.

The SWOT analysis includes the internal and external environment contained in warteg embu MSMEs. Internal environment analysis is carried out using the IFAS (Internal Factor Analysis Summary) table described in the following table:

Table 2. Table IFAS

No Information Weight Rating Weight x Rating
Strength
1 The price offered is cheaper than competitors around the warteg embu MSME area. 0,20 4 0,80
2 The menu offered varies and there is a fixed menu that is the flagship in warteg embu MSMEs. 0,10 3 0,30
3 Prioritize customer satisfaction. 0,15 4 0,60
4 Pay attention to the quality of materials and products colonized to consumers. 0,10 4 0,40
Sub Total 0,55   2,1
Weakness
1 Lack of technological devices owned. 0,15 2 0,30
2 Lack of marketing management knowledge and unavailability of online distribution. 0,10 2 0.20
3 There is a certain time when people’s purchasing power decreases, namely the waiting time for large rice for workers with a farmer background. 0,05 1 0,05
4 There are limited working capital. 0,15 2 0,30
Sub Total 0,45   0,85
Total Skror 1.00   2,95

Based on the data described above, it can be explained that warteg embu MSMEs have 3 top strengths, namely the prices offered are cheaper than competitors around the warteg embu MSME area, prioritize customer satisfaction and pay attention to the quality of materials and products colonized to consumers. These three advantages can be utilized by warteg embu MSMEs to be able to maintain and improve their business activities, from the results of the IFAS analysis above, a score of 2.95 was also found which shows that strength can be an important capital in running a business carried out by warteg embu MSMEs, in addition to IFAS analysis researchers also conduct EFAS analysis which is described in the following table:

Table 3. Table EFAS

No Information Weight Rating Weight x Rating
Oportunity
1 Society is dominated by workers, laborers, and peasants who have little time to cook food before and after work. 0,20 4 0,80
2 Support from the government such as people’s business credit (KUR). 0,05 3 0,15
3 The marketing network is quite extensive as evidenced by consumers who come from outside the village and sub-district areas. 0,10 4 0,40
4 Follow the development of information technology that exists today 0,15 4 0,60
Sub Total 0,50   1,95
Threats
1 There is a similar business around the warteg embu MSME location area. 0,25 3 0,75
2 The existence of a business that raises the theme of modernization and colonizing junkfood as its mainstay menu so that the existence of warteg embu MSMEs is less attractive to young people. 0,15 2 0,30
3 The price of raw materials is often fluctuating. 0,10 2 0,20
Sub Total 0,50   1,25
Total Skror 1.00   3,20

From the EFAS analysis table above, it can be concluded that the highest opportunity factor is in the community dominated by labor workers and farmers who have little time to cook food before and after work, the marketing network is quite extensive as evidenced by consumers who come from outside the village and sub-district areas and follow the development of information technology that exists today. Meanwhile, the threat that must be watched out for is the existence of similar businesses around the Warteg Embu MSME location area. Based on the IFAS and EFAS tables above, the IFAS and EFAS matrices of SWOT analysis can be described as follows:

Figure 3 Quadrant 1 IFAS and EFAS Matrix of Warteg Embu MSMEs

Based on the calculations described above and the IFAS and EFAS matrices, it is known that warteg embu MSMEs are in quadrant 1 which shows that warteg embu MSMEs have a strong position and have the opportunity to develop, the position of quadrant 1 occupied by warteg embu MSMEs explains that the strategy that can be used is the S-O strategy where warteg embu MSMEs can take advantage of existing strengths to seize opportunities. The S-O strategy that can be used to seize opportunities is to maintain the quality of service and product quality owned, expand marketing networks and utilize social media more massively, improve the performance of MSMEs and can collaborate with material suppliers and MSME actors with similar interests and business channels.

Entrepreneurial Marketing Strategy

Based on the SWOT analysis that has been carried out, it was found that warteg embu MSMEs are in quadrant 1 which explains that warteg embu MSMEs have a great opportunity to develop and the marketing strategy that can be used is S-O by utilizing existing opportunities and strengths. Marketing strategies that can be done are by maintaining and improving the quality of service and product quality which will directly impact marketing activities. As well as the quality of products and services that can be maintained properly, it will create interactive marketing that will be done by consumers themselves when getting satisfaction from the services and products purchased.

Interactive marketing is one of the marketing strategies that can be done, by building communication with customers and the public regarding products recommended to customers and the public. Interactive marketing strategies will be automatically created between consumers if consumers are satisfied with the quality of the products provided. In addition, massive digital marketing also needs to be done to keep pace with technological advances, good use of technology will produce a positive impact on the development of business and business run. By using SWOT analysis, entrepreneurs can find out the strengths, weaknesses, opportunities and threats they have to be used as strengths owned by warteg embu MSMEs to develop their business even though there are limitations they have.

CONCLUSION

Based on the explanation described above, it can be concluded that Micro, Small and Medium Enterprises (MSMEs) are productive businesses owned by individuals and / or individual business entities that meet the criteria for micro enterprises as regulated in this law, the existence of MSMEs has been regulated in law which is also protected by the state as one of the driving forces of the economy in Indonesia. UMKM warteg embu which belongs to Mr. Dosih has a complete address in Kampung Rawa Kuda, Desa Karang Harum RT. 11/06, Kedungwaringin District, Bekasi Regency. This MSME focuses on culinary businesses that raise regional flavors. The results of the SWOT analysis that have been carried out have found that warteg embu MSMEs are in quadrant 1 which explains that warteg embu MSMEs have great opportunities to develop and the marketing strategy that can be used is S-O by utilizing existing opportunities and strengths. Marketing strategies that can be done are by maintaining and improving the quality of service and product quality which will directly impact marketing activities. Warteg embu MSMEs have a strong position and have the opportunity to develop, the quadrant 1 position occupied by warteg embu MSMEs explained that the strategy that can be used is the S-O strategy where warteg embu MSMEs can take advantage of existing strengths to seize opportunities. The S-O strategy that can be used to seize opportunities is to maintain the quality of service and product quality owned, expand marketing networks and utilize social media more massively, improve the performance of MSMEs and can collaborate with material suppliers and MSME actors with similar interests and business channels.

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