Decision Tree Algorithm Classification for Medan City Laundry Business

Abstract

This research aims to classify laundry businesses in the city of Medan using the Decision Tree algorithm. As the small and medium-sized enterprise sector continues to grow, the laundry business has become one of the industries that is constantly developing, especially in urban areas like Medan. Although the demand for laundry services is high, many entrepreneurs struggle to determine the right strategy to win the competition. Therefore, this research applies the Decision Tree algorithm to help classify the factors influencing the success of laundry businesses in Medan City. The data used in this study were obtained through surveys of several laundry business owners in Medan City, with variables including location, price, service quality, target market, and promotions conducted. The research results show that the Decision Tree algorithm is capable of identifying patterns and dominant factors that influence the success of laundry businesses. The location and service quality variables are the most important factors determining success in the laundry business, followed by price and promotion strategies. This research is expected to provide insights for laundry entrepreneurs in designing more effective business strategies, by considering the factors that have been proven to influence the performance of laundry businesses in Medan City.