Digital Transformation Strategy as an Effort to Improve the Competitive Advantage of Non-Formal Educational Institutions

Abstract

Digital transformation has become a strategic catalyst reshaping the competitive landscape of education, compelling nonformal institutions to develop distinctive and sustainable resource configurations. Indonesia Mind Center (IMC) Semarang faces increasing pressure to adapt its competitive strategy amid rapid digitalization and intensified market competition. This study aims to analyze IMC’s competitive strategy through the lens of the Resource-Advantage Theory of Competition (RATOC), focusing on existing strategic practices, marketing constraints, and effective models of competitive advantage. This research employs a qualitative approach using a case study design. Data were collected through in-depth interviews with institutional managers and educators, field observations of learning and marketing activities, and analysis of organizational documents. The data were analyzed thematically by aligning empirical findings with key RATOC constructs, including resource heterogeneity, value creation, and the sustainability of competitive advantage.The findings indicate that IMC creates value through teaching expertise, program differentiation, and the adoption of learning technologies. However, limitations in human resources, digital infrastructure, and an insufficiently adaptive organizational structure hinder stable market positioning. RATOC analysis underscores the need for technology-enabled resource orchestration, including learning management systems, performance analytics, and adaptive assessment, as well as value-creating activities such as personalized learning experiences and organizational transformation. The study concludes that IMC’s sustained competitive advantage depends on consistent digital transformation, enhanced staff capabilities, strengthened strategic partnerships, and the development of agile service ecosystems. These findings contribute to competitive strategy theory in education and offer practical insights for nonformal learning institutions in emerging market contexts.