Implementation of The Blue Ocean Strategy to The Financial Performance of Village Credit Institutions (LPD) In Bali

LPD as a microfinance institution belonging to a traditional village in Bali, specializes in serving village communities, including those who are unbankable. Having an unbankable market has the potential to increase NPLs and reduce financial performance. Many LPDs have small company sizes (depending on the potential of the village) and are managed by unprofessional management. But LPDs were able to grow and survive 35 years of competition. The purpose of this research is to examine LPD strategies to be able to grow and survive in the midst of increasingly fierce competition for microfinance institutions. Using qualitative research methods supported by quantitative data sourced from LPLPD Bali Province in 2022 with an ethnographic approach, and unstructured interview techniques. This study concludes that the LPD is a microfinance institution belonging to a traditional village, benefit-oriented, not profit-oriented. The financial performance of LPDs is relatively good. Only a small proportion (around 7%) experienced problems, mostly caused by factors of business size and governance, only a small portion due to NPLs. LPD's ability to grow and survive is due to implementing the Blue Ocean Strategy by creating a market for indigenous villagers, who are known and trusted, and are not affordable by competitors. This article is the result of research, has never been published by anyone