Agroindustrial development strategy for herbal-cardamom coffee in Sumberjambe subdistrict, Jember district, East Java, Indonesia

Abstract

Santuso II Forest Farmers Group has developed cardamom coffee as a herbal coffee drink to increase the value of coffee. It opens the opportunity to realizing coffee agro-industry startups and increasing farmers' income in Sumberpakem Village, Sumberjambe District, Jember Regency. This study aimed to analyze internal and external conditions and to formulate and recommend business development strategy for the Santuso II Forest Farmers Group. The method was interview using a questionnaire. The data were then analyzed to obtain a strategy formulation using the analysis of Strengths, Weaknesses, Opportunities, Threats (SWOT). A business model was designed using the Business Model Canvas (BMC) and continued using the Quantitative Strategy Planning Method (QSPM). The results showed that there were 8 strengths, 12 weaknesses, 6 opportunities, and 3 threats. Based on weighting and rating, the weight value for the Internal Factor Evaluation (IFE) matrix is 2.89 and the External Factor Evaluation (EFE) matrix is 3.45. This value indicates a strong position in the Internal-External (IE) matrix with an intensive strategy or an integrative strategy. Based on the QSPM matrix analysis, the alternative priority strategy is promoting effectively and intensively through the marketing channels for herbal coffee which are very rare in the market.