Business development strategy of coffee processing in MSMEs scale using BMC approach and SWOT-AHP integration

¹ Department of Agricultural Industrial Technology, Brawijaya University, Veteran Street, Lowokwaru District, Malang City, East Java 65145, Indonesia
² Departement of Agricultural Technology, Politeknik Negeri Jember, Indonesia

^* Corresponding author: imamsantoso@ub.ac.id

Abstract

The coffee agro-industry is a sector that is currently growing rapidly in Indonesia. MSMEs Loca Nusa is one of the coffee producers in Malang City which has the potential to be developed. They sell robusta coffee at low prices and delivered from Dampit, Malang which is known to have the best quality. However, Loca Nusa still experience problems in managing their business. The purpose of this study is to identify internal and external factors, formulate and sequence strategies, and form a new development BMC. This study used SWOT (Strength, Weakness, Opportunity, Threat), the AHP (Analytical Hierarchy Process) and BMC (Business Model Canvas) approach. The results showed that the position of MSMEs Loca Nusa was in quadrant V (hold and maintain) with product development and market penetration strategies. The result of the AHP ranking showed market as the highest criteria (0.510), the highest goal is that MSMEs can expand the market to increase production figures (0,566), and the highest alternative is expanding the market to coffee shops in Malang by selling roasted bean products with various variations (0,612). The addition of strategy to the upgraded BMC is on key partner elements, value propositions, and channels.