Analysis of Business Development Strategies with Business Model Canvas Approach

Abstract

Fruit processing industry is one of the food-based industries in Indonesia that has the potential to be developed. One of the potential fruit-based products is the development of regional superior products, including local apples in the Batu City area. SMEs processing industry sector in Batu City has prospective opportunities to be developed as a producer of regional superior products into a variety of souvenir products typical of Batu City such as apple pia, apple pie and apple brownies. The objective of the research is to identify the business model in SMEs and building the alternative business development strategies. The object of research is SMEs Permata Agro Mandiri in Batu City, East Java. The research approach and method used are business model canvas approach and SWOT analysis. The results showed that nine BMC elements are show the business model run by Permata Agro Mandiri. Based on the SWOT analysis of nine BMC elements, the strength of these SMEs in running business model was in the ownership of product standardization and production processes certificates, weaknesses with the greatest influence were limited machine capacity and human resources skills, potential opportunities is increasing the number of tourist in Kota Batu, and the biggest threat is business customer satisfaction and loyalty affects the sale of products. The alternative business development strategies are prepared, improving marketing strategies (SO-1), developing tourism and educational services (SO-2), optimizing social media and e-commerce as online marketing media (WO-1), conducted of training and development human resources activities (WO-2), positioning (ST), educating and introducing the brand (WT).