Application of Business Model Canvas and Blue Ocean Strategy on the Palm Sugar Business Development

Abstract

Palm sugar is one of the businesses developed widely by the community, mostly those around the forest. The use of sugar palm as a non-timber forest product has been cultivated for generations. However, this business has not been managed as a sustainable business unit with a simple business model. The study aimed to develop a sugar business model through the application of the business model canvas (BMC) and blue ocean strategy (BOS). The business model is applied in the palm sugar business in Sinjai Regency, South Sulawesi, Indonesia. Data collection technique was conducted by using a participatory approach with observation techniques, direct observation of the production, packaging and marketing activities of palm sugar done by palm sugar producers (farmers) at the research location. In-depth interviews using interview guidelines were also conducted to obtain an overview related to the palm sugar business model. Identification of internal environmental factors (IFAS) and external environmental factors (EFAS) was carried out through a SWOT analysis on nine key elements of BMC. The formulation of the business model is conducted by integrating BMC and BOS on the nine elements of BMC in the palm sugar business. The positioning of this business quadrant is in quadrant I with a progressive strategy which means that the palm sugar business is in good condition so it has the potential to grow and can compete with the application of the right business model.