Analysis of the Application of Blue Ocean Strategy (BOS) in the Digital Transformation of MSMEs: A Literature Study to Increase the Buying Interest of Generation Z in Ambon City

Abstract

This research aims to analyze the application of Blue Ocean Strategy (BOS) in the digital transformation of MSMEs in Ambon City to increase Generation Z's buying interest. Through a literature study approach, the results show that BOS is able to create new markets with local wisdom-based value innovations, such as creative culinary and fashion with Moluccan nuances combined with digital strategies. This transformation avoids fierce competition (red ocean) by leveraging Generation Z's preference for practicality, personalization and sustainability. The main challenges include limited digital infrastructure and human resources, but great opportunities lie in multi-stakeholder collaboration, utilization of digital platforms, and government support through training and development of MSME-specific applications. The findings provide practical recommendations for MSMEs and policy makers to optimize Generation Z's market potential and strengthen the local economy.