Development of strategic plan for palm sugar agro-industry using SWOT analysis and business model canvas: Case study in Lombo Village, Sidrap District

Abstract

Agro-industry is the fundamental part of a development of the agricultural sector. One form of promising agro-industry to be developed in Indonesia is the development of products from palm sugar commodities. The purpose of this research is to determine how to develop a business strategy and increase the potential of the palm sugar industri in Lombo Village, Sidrap District. This study aims to: 1. determine external and internal factors; 2. formulate and analyze internal and external factors, which include strengths, weaknesses, opportunities, and threats, from the development of palm sugar agribusiness. 3. Determine strategic priorities based on existing potentials, capabilities, and constraints. 4. Define a business model canvas.The method used in this research is descriptive qualitative. This study used an accidental sampling method with a total sample size of 40 palm sugar farmers. Data analysis was performed using SWOT matrix analysis and the Business Model Canvas (BMC). The conclusion from the internal matrix analysis is that the Strategic Factor (IFAS) 5.295 and the External Strategic Factor (EFAS) 4.89. This illustrates that the palm sugar industry in Lombo Village, Sidrap District has strengths that can be developed further. The advice to palm sugar farmers in this area is to maintain product taste, as well as carrying out various innovations in diversifying palm sugar products and making product packaging attractive so that it will increase added value.