The increasingly rapid business strategy innovation and internet usage that are also increasing make many companies switch to using business strategies via digital. Many companies chosen Instagram, one of the social media focused in photo and video content to support their marketing activities. The implementation of new Instagram system reaps controversies from people. Instagram algorithm considered inflict a financial loss because of how complicated it works and it will let down the competitive advantage, however the use of Instagram for business activities is increasing. Researcher do this research in order to know how Instagram algorithm can be the opportunities also challenges for online marketers in improving competitive advantage. This research done by interviewing online florist (considered as online marketer) as the informant. Observation and documentation also done for collecting the data. Primary data is obtained from in-depth interview with the informant and secondary data is obtained from literatures and journals about Instagram algorithm. Data reduction, display data and conclusion verification also used in this research as analysis data method. Data validity method that used are source and technique triangulation . The result of this research is that Instagram algorithm has big opportunities also challenges for online florist development. Instagram still be the main platform that chosen by online marketers to advertise their product despite the challenges. Instagram algorithm help online marketers get prospective customers and determine the right marketing strategy in business. The advice from researcher are that online marketers should be more active learning about this new system, increasing the motivation and improve communication on social media. Suggestion for further research is researchers can examine the effects of this Instagram algorithm through the consumer’s point of view as well.
Keywords : Instagram algorithm, opportunities, challenges, competitive advantage, Bali.