This study aims to identify Core Competency Factors that can improve SME's competitive strategy. This study analyzed 15 Core Competency Factors and their association with Competitive Strategy. Samples taken as many as 69 SME's, and the data collected were processed using correlation. From 15 Core Competency Factors it was concluded that 10 variables correlated with Core Competencies significantly at alpha level 1% (9 factors) and significant at 5% alpha level (1 factor), while the other 5 factors did not correlate significantly. Strategy is based on the factors that form the core competencies, so as to improve the competitiveness of small and medium enterprises. Small and medium enterprises can open up to receive suggestions for improving their competitiveness. Required assistance from government, private and universities in terms of guidance on the implementation of competitiveness improvement strategies.
