Business development strategy of sago for food security

Abstract

One of the local-based food ingredients of Indonesia is sago palm. Sago palm is widely grown in several regions such as Papua, Maluku, Sumatra, Riau and Sulawesi. Sago food is one of the main foods of the community in South Sulawesi. Although sago is recognised as an important alternative food ingredient, the facts on the ground show that sago management, from raw material sources, production process, to marketing process is still conventionally managed. The main objective of this study is to analyse the real business model of sago to define the characteristics of each part of their business model, i.e., customer segment, proportion, channels, revenue streams, customer relationships, key activities, key resources, key partnerships, and develop a new strategy. The paper presents an application of Business Model Canvas, SWOT Analysis and IFE-EFE matrix to create a strategy for business development of sago product. The results shows that the business model is still simple, not managed as an integrated business unit. To deal with unfavourable situations, these efforts need to harness the power it has to deal with external threats by applying turn-around strategy. The model is suitable strategy to be applied to the sago business are increasing the quantity and product quality, diversification, promotion, and establish partnerships with the government to gain access to technology and capital.

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