The strategy of business model development in mushroom agroindustry

Abstract

Abstract In general, mushroom business centers spread over the city and regency of Malang have been growing since 2010. These businesses can produce various processed products that are increasingly popular in both local and global markets. To increase business competitiveness, it needs to implement strategic management. This study aims to identify an alternative strategy used to develop the business model of the mushroom agroindustry. The objects of research are 19 mushrooms Small and Medium Enterprises (SMEs) in Malang. This study uses the Business Model Canvas (BMC) approach and Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis to identify the agroindustry conditions, as well as the Analytical Hierarchy Process (AHP) method to determine alternative priorities for business development. Through the combination of SWOT-AHP, the proposed strategies of business development are (1) Weakness-Opportunity (WO) strategy (intensive product marketing through social media); (2) Strength-Opportunity (SO) strategy (development and improvement of product quality to expand the marketing area); (3) Weakness-Threat (WT) strategy (evaluation and improvement of the quality of the partnership relationship to increase partner loyalty); and (4) Strength-Threat (ST) strategy (increased promotion and development of services to face the other food product competitors). BMC development is carried out by adding SO strategy on the value propositions element, the ST and WO strategy on the channel’s element, and the WT strategy on the key partnership element.