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Abstract. As a result of the multidimensional crisis and global financial crisis, small medium enterprises (UKM) have become
an alternative solution for economic and employment problems. The present research is focused on the development strategy
for the tapis cloth industry in Bandar Lampung; the researcher analyzes the internal and external environmental factors
considered to be the strengths, weaknesses, opportunities, and threats in the development of the tapis industry in Bandar
Lampung, formulates a development strategy, and devises a set of priority-based alternative strategies. The methods used
are the SWOT (Strength, Weakness, Opportunity, Threats) analysis and the AHP (Analytical Hierarchy Process). Research
results show that the development requires additional capital, a location for the industry center, and standardized quality in all
processing locations. Businesspeople involved in the industry must be encouraged to participate in trainings and seminars in
order to build networks. They must also be thoroughly familiar with the application of management and promotional strategies
that use leaflets, brochures, and other promotional media. Facilities in business locations and buildings must be improved,
product quality must be standardized, and the market must be expanded.
Keywords: development strategy, small industry, competitive advantage, SWOT-AHP