Analysis of Business Development Strategies with Business Model Canvas Approach

Fruit processing industry is one of the food-based industries in Indonesia that has the potential to be developed. One of the potential fruit-based products is the development of regional superior products, including local apples in the Batu City area. SMEs processing industry sector in Batu City has prospective opportunities to be developed as a producer of regional superior products into a variety of souvenir products typical of Batu City such as apple pia, apple pie and apple brownies. The objective of the research is to identify the business model in SMEs and building the alternative business development strategies. The object of research is SMEs Permata Agro Mandiri in Batu City, East Java. The research approach and method used are business model canvas approach and SWOT analysis. The results showed that nine BMC elements are show the business model run by Permata Agro Mandiri. Based on the SWOT analysis of nine BMC elements, the strength of these SMEs in running business model was in the ownership of product standardization and production processes certificates, weaknesses with the greatest influence were limited machine capacity and human resources skills, potential opportunities is increasing the number of tourist in Kota Batu, and the biggest threat is business customer satisfaction and loyalty affects the sale of products. The alternative business development strategies are prepared, improving marketing strategies (SO-1), developing tourism and educational services (SO-2), optimizing social media and e-commerce as online marketing media (WO-1), conducted of training and development human resources activities (WO-2), positioning (ST), educating and introducing the brand (WT).


Introduction
Fruit processing industry is one of the food-based industries in Indonesia that has the potential to be developed. This is supported by the high economic value of fruits and the rapidly growing market demand, both in the domestic and foreign markets. One of the potential fruit-based products is the development of regional superior products, including local apples in the Batu City area. The SME manufacturing industry sector in Batu City has prospective opportunities to be developed as a producer of regional superior products, supported by Batu City as a tourism city. One of the apple processing industries in Batu City that runs until now is "Permata Agro Mandiri" into a variety of souvenir products typical of Batu City such as apple pias, apple pies, and apple brownies with the trademark "Shyif". One of the efforts to realize the role as a producer of regional superior products and Permata Agro Mandiri as one of the potential SMEs in Batu City still has several problems in developing its business, among others, limited technology and production resources which results in low production effectiveness and efficiency, lack of familiar brand image of "Shyif" products so that they cannot maximize marketing, and marketing products online that have not been optimal. It is important to analyze business development strategies to improve and develop the Permata Agro Mandiri business. Business development strategies can be prepared based on the business model canvas approach followed by a SWOT analysis. The Business Model Canvas refers to providing the focus needed for a structured discussion and four perspectives (strengths, weaknesses, opportunities and threats) from a SWOT analysis to assess each element of the business model. The purpose of this study is to determine the priority of business development strategies with the integration of SWOT and Business Models Canvas.

Methods
Business model canvas approach used in identifying and analyzing is used in identifying and analyzing business models of Permata Agro Mandiri. Expert respondents were determined by the purpose sampling method consisting of 3 people from SMEs and 1 consultant from the Integrated Business Services Center (PLUT).
Research is descriptive qualitative and quantitative as follows: a. Identifying the Permata Agro Mandiri business model through the analysis of nine elements of the business model canvas consisting of, customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. b. Evaluate the business model canvas with a SWOT analysis, through the following stages: 1. Analysis and weighting of the internal environment (strengths and weaknesses) with the Internal Factor Evaluation (IFE) matrix and the external environment (opportunities and threats) with the External Factor Evaluation (EFE) matrix on nine MBK elements. 2. Determine the company's position on the Internal-External (IE) matrix of the meeting between the two points, namely, the X-axis (total IFE matrix score) and Y-axis (total EFE matrix score. c. Arrange alternative business development strategies through the elaboration of the SWOT matrix.

General Overview of Permata Agro Mandiri
Permata Agro Mandiri is one of the UKM that processes apples in Batu City with superior products from Permata Agro Mandiri namely pias, pies, and apple brownies. Permata Agro Mandiri also cooperates with production partners in producing Madumongso, Wingko, and Apple Toffie products with the trademark "Shyif". The raw material for making superior products, namely Manalagi Apple, is obtained from suppliers around the village of Banaran, Bumiaji. Permata Agro Mandiri has a workforce of 18 people which includes production and marketing workers, and 2 SMEs owners. The average production capacity for all superior products (from 2014 to 2018) reached 15,000 packs per month with turnover obtained reaching Rp 46,000,000.00 to Rp 73,000,000.00 per month.
Marketing of the "Shyif" product covers the market coverage of Kota Batu and Malang Raya, conducted online through the website www.permataagromandiri.com and offline marketing through sales partners (gift shops / outlets, distributors, agents, and resellers). The advantages of Permata Agro Mandiri are that it has several certificates related to products, production processes, and business management. Permata Agro Mandiri provides educational tourism services (apple picking and apple processed production) as an effort to meet the needs of industry visits from a group of tourists.3.2.

Business Model Canvas Permata Agro Mandiri
The strategy of developing Permata Agro Mandiri business through the Business Model Canvas approach. The main principle of the business model canvas is to focus on quality over quantity, namely on how to determine key inputs on each element [1]. The Mandiri Permata Agro Business Model Canvas can be seen in Figure 1.

Customer Segments
Consumer categories from Permata Agro Mandiri are in the diversified type, namely, two large groups of customers with different needs and problems. Permata Agro Mandiri diversifies its consumers into consumers of "Shyif" products and consumers of tourism and education services. a. Consumer Products "Shyif" The final consumers of the "Shyif" product, viewed from the geographical dimension are tourists and non-tourists visiting Batu City and Malang Raya, both tour groups, schools, organizations and families. In addition to end customers, Permata Agro Mandiri also has business customers in the form of sales partners consisting of souvenir shops / outlets, distributors, agents or resellers. All product consumers will get the advantage in the form of guaranteed "Shyif" product quality, proven by various kinds of certificates related to their products and production processes. Product quality standards can be evaluated through the nutritional value contained, the quality of the ingredients used, the taste, and the appearance of the product [2]. b. Consumer Tourism and Education Services Tourism and education services through the provision of educational services such as, education on entrepreneurship production, and apple picking tourism. Permata Agro Mandiri implements a minimum group of 10 people for production education services and apple picking tours, while for entrepreneurship education an entrepreneurial training service is applied. Consumer service users come from inside and outside the City of Batu. Rokhman [3] states, educative agro-tourism is a tour that is designed to be interesting, fun, and smart will provide a new experience for visitors.

Value Propositions
The value proposition offered by Permata Agro Mandiri is products with the trademark "Shyif" as well as tourism and education services. The value proposition can be said to be a strength for Permata Agro Mandiri because it aims to meet the needs of its customer segments.

a. "Shyif" Branded Processed Apple Products
The sale of processed apple products under the brand name "Shyif" is included in the value proposition for the new nature category, which is a product like never before. Permata Agro Mandiri is UKM in Batu City which started the production of pias, pies and brownies using apple raw materials. "Shyif" products have several advantages in terms of the main facilities provided and are proven through the many certificates related to products and production processes. b. Tourism and Education Services Educational services provided by Permata Agro Mandiri in the form of education on production and entrepreneurship, and apple picking tour services. The three services provide consumers with a tour and learning experience through providing entrepreneurial training from business people and practice the production process of "Shyif" products directly. Production education tour services are carried out within ± 90 minutes duration and apple picking is served daily with service hours starting at 07.00-17.00 WIB. Entrepreneurship education tourism services are carried out through exposure to materials with a duration of ± 300 minutes or a training program for 2-3 days.

Channels
Permata Agro Mandiri applies two types of channels in the delivery of its value proposition namely, direct channels and indirect channels. Through a variety of channels, it is expected that producers can increase sales figures [4], so it can be said that the channel element is a strength for Permata Agro Mandiri in running its business model. a. Direct Channels Direct channels are carried out through the sale and promotion of the website www.permataagromandiri.com and word of mouth. Both are carried out to market "Shyif" products and tourist services offered. Direct channels are also carried out through the display and sale of products in the showcase located in the production area. Word of mouth marketing efforts can trigger consumers to discuss, promote, recommend, and sell products or brands to other consumers (Kotler and Keller, 2009 in Dewi et al [5]). b. Indirect Channels Indirect, specific channels are used for marketing "Shyif" products. Indirect channels are run through collaboration with sales partners. Permata Agro Mandiri sales partners consist of gift shops / outlets, distributors, agents or resellers. Purchases are made retail and wholesale. The advantage of implementing indirect distribution channels is that the role of intermediaries greatly helps producers better serve customer needs and helps expand product marketing at a relatively low cost [6].

Customer Relationships
Customer relationship is a strength owned by Permata Agro Mandiri because it is related to the delivery of its value proposition to customers. The type of relationship that Permata Agro Mandiri has built with business customers and end customers is personal assistance (personal relationship), with the following explanation:

Personal Assistance to Business Customers
Personal assistance is based on interactions between the marketing division of Permata Agro Mandiri and the sales partners. The advantage of this relationship is that companies can be more flexible, offer products with lower levels of damage, eliminate unnecessary delays, and minimize costs through managing supplier and buyer relationships. Effective management of supplier and buyer relationships can help companies respond better to consumer needs [7].

Personal Assistance to "Shyif" Product Consumers
Personal assistance from Permata Agro Mandiri to consumers finally through the provision of contact persons in the form of telephone numbers and e-mails listed on the website. If the final customer makes a purchase through the website or directly to the production house, a service officer will be provided to facilitate the purchase transaction. The competitive advantage is based on product quality or price and the company's ability to help customers create and develop added value for them [8].

Personal Assistance to Tourism and Education Service Consumers
Personal assistance to travel service consumers makes it easy for Permata Agro Mandiri to serve their needs and meet consumer expectations. Permata Agro Mandiri includes contact persons in the form of telephone numbers and e-mails to access educational tourism services on the website and brochure. Hadani [9] states, preparation and service delivery with high performance is able to provide satisfaction to customer needs or exceed customer expectations.

Revenue Streams
The income stream is the income from Permata Agro Mandiri, which is obtained from two sources, namely product sales and tourism service sales. Both are strengths of the business model and have the potential to be improved so that the revenue stream can be maximized. The following is an explanation of the two sources of income:

"Shyif" Product Sales
Permata Agro Mandiri's revenue streams are obtained through the sale of "Shyif" products. "Shyif" superior products sold are apple pia, durian pia, jackfruit pia, mini apple pia, apple pie, wet apple brownie, and dried apple brownie. In addition, Permata Agro Mandiri also sells products in collaboration with production partners consisting of, madumongso, wingko, and apple toffie. Product sales are carried out in three ways, namely through website sales, sales partners, and directly from the production site. Cooperation with outlets plays a role in promoting products to consumers and the position of outlets close to consumers makes it easy for producers to know the needs, desires, and expectations of consumers for a product [4] and the use of lower costs [6].

Sales of Tourism and Education Services
Revenue flow is also obtained from the sale of educational tourism services through the collection of fees for the use of facilities and educational experience that will be obtained by customers. Educational tourism services offered are educational production tours, entrepreneurship, and apple picking tours. The income from educational education tourism services is 2.5-5% of the total monthly product sales turnover in the range of IDR 2,300,000 to IDR 3,700,000.00. The two revenue streams above use a dynamic pricing mechanism. Dynamic pricing is a price that can change according to market conditions [10].

Key Resources
The main resources owned by Permata Agro Mandiri are physical, intellectual, human and financial assets. The four main resources include the strength of Permata Agro Mandiri in running its business model. The four main Permata Agro Mandiri resources are as follows:

Physical
Resources in the form of physical assets are used to create value propositions consisting of buildings, machinery and production equipment, distribution vehicles, and meeting rooms. The buildings, machinery and equipment used are standardized and in accordance with the provisions based on the halal certificate, P-IRT, and food safety standards of the POM Agency. Production assets / services that have been standardized will produce quality products and meet the standards, so that it has an impact on achieving customer satisfaction [11].

Intellectual
Intellectual resources owned by Permata Agro Mandiri consist of certificates related to "Shyif" products and protected production methods / techniques. Certificates related to the product are the IPR certificate for the trademark "Shyif", the halal certificate from the East Java MUI, and the SUCOFINDO nutrition certificate. Certificates related to the production process are, among others, the

Human
The human resources needed for operational activities at Permata Agro Mandiri consist of 1 general manager, 1 production manager, 1 marketing manager, 16 production employees, and 1 marketing employee. The superiority of Permata Agro Mandiri is related to its human resources, especially the production department which has participated in training in the production process in accordance with food safety principles. The Charter is one of the implementations of the Integrated Food Safety System of the Food and Drug Administration Agency which is given to the food industry which has trained all its employees with the One Star Food Safety Charter Training material and has practiced it in the production process [12].

Financial
Financial resources have an important role for Permata Agro Mandiri because it is related to the availability of cash used to run the business model. Permata Agro Mandiri provides a number of cash that functions to finance production and marketing operational activities in each period. Kotler and Keller (2006) in Muliawan and Sugiarto [13] stated, product availability factors influence purchases. The more the product is in accordance with its availability schedule, the effect on the intensity of consumer purchases.

Key Activities
The key activities undertaken by Permata Agro Mandiri consist of marketing activities for "Shyif" products and tourism and education services. The following is an explanation of the two key activities of Permata Agro Mandiri:

"Shyif" Product Marketing Activity
Marketing activities at Permata Agro Mandiri consist of providing raw materials, additives and packaging, production processes, and product delivery / distribution. Production activities are the strength of Permata Agro Mandiri in running the business model because the superior product "Shyif" is a pioneer product that has never been found before in Batu City. Without key activities, Permata Agro Mandiri cannot create and deliver value propositions that will meet the needs of its customers.

Service Activities
Operational services that are owned by Permata Agro Mandiri are production education tourism services, entrepreneurship education, and apple picking tourism. Along with the increase in visits, in 2016 Permata Agro Mandiri began to provide adequate facilities and facilities for tourism and education services. Quality of service that is able to meet customer expectations will encourage customers to convey the satisfaction they feel to other customers, this can attract interest and increase potential repurchases by customers [14].

Key Partnerships
The type of partnership relationship undertaken by Permata Agro Mandiri is a strategic partnership between non-competitors and buyer-supplier relations to supplement resources that are not owned. Osterwalder and Pigneur [10] states, companies create alliances to optimize business models, reduce risk, and obtain resources.

Strategic Partnership between Non-Competitors'
Permata Agro Mandiri has a non-competitive partnership with sales and production partners. Permata Agro Mandiri works closely with gift shops / outlets, distributors and marketing agents in marketing their products. Marketing through sales partners is done by entrusting "Shyif" products to be sold by sales partners (consigned). Activities in non-competing partnerships with production partners are other SMEs or cooperatives producing a product and sent to Permata Agro Mandiri to be marketed using the trademark "Shyif".

Buyer-Supplier Relationship
The buyer-supplier relationship exists between Permata Agro Mandiri and suppliers of production needs, namely, suppliers of apples, additives, and packaging. Apple raw materials are obtained from suppliers around Batu City and sent directly to the production site, with the number of apples sent ± 300 kg for 2 days of production. The partnership strategy with suppliers allows the company to work effectively in creating a product [15] and excel in a competition (Morgan and Hunt, 1994 in Haryono [8]).

Cost Structure
The cost structure implemented by Permata Agro Mandiri in its business model is cost-driven, which focuses on minimizing costs. Permata Agro Mandiri strives to minimize production costs while still providing a quality value proposition. Cost minimization is done by improving and efficiency of company resources and the application of special production techniques. The selling price of products that are affordable and suitable for customers significantly influences repurchase interests [16].

Fixed Cost
Fixed costs incurred that include employee salaries, buildings / buildings where production, and machinery and production equipment. Determination of employee salaries based on the number of employee hours Yulia et al [17] states, fixed costs will always remain (constant) even though business activities and sales volumes have changed.

Variable Cost
Variable costs in the Permata Agro Mandiri business model, namely, the cost of procuring raw materials, supplementary materials, and packaging, as well as certification costs. Variable costs in providing education services, namely, the cost of purchasing consumption for tourists education services (welcome drink). Variable costs will change along with changes in the volume of business activities, sales carried out, and activities related to production operations and products produced [17].

SWOT Analysis
The business model canvas evaluated the strengths, weaknesses, opportunities and threats (SWOT) of each element. Following are the results of internal and external environmental analysis from Permata Agro Mandiri. a. Internal Environmental Analysis Internal environment analysis shows the results of the analysis of strengths that are useful in implementing business models and weaknesses that have the potential to hamper the development of business models. Based on the results of the assessment of the average weight and rating of the four expert respondents showed that the strength of the cooperation of sales and production partners had the highest score with a score of 0.488 and the weakness of the logo "Shyif" on the packaging design has not been able to create a brand image in the minds of consumers is the weakness that influences the most great with a score of 0.144. Scores are influenced by ratings, rating ratings are conducted by respondents based on existing conditions of the company. b. External Environmental Analysis Analysis of the external environment provides the results of an analysis of the opportunities that can be exploited and the threats facing the company. Based on the results of the assessment of the average weight and rating of the four expert respondents shows that, the opportunity to increase the number of tourists in Batu City is the opportunity with the highest score (0.542). The threat with the highest score (0.488) that is, satisfaction and loyalty of sales partners affects product marketing. . High rating (maximum 4) for opportunity and threat factors shows that the company's response is very good Determination of the company's position based on the results of the total score of the IFE matrix (2,899) and the EFE matrix (2,985) which are matched on the IE matrix (Figure 2), shows the position of Permata Agro Mandiri is in cell number V with the strategy implications of maintaining and maintaining). The strategy that should be carried out by Permata Agro Mandiri based on this position is to penetrate the market and develop products.

Figure 2. Permata Agro Mandiri's Internal-External Matrix
The market penetration strategy currently being implemented by Permata Agro Mandiri is through the provision of relatively affordable selling prices, ranging from Rp 10,000 to Rp 20,000 per pack of "Shyif" product. The cost of educational education tour services is around Rp. 10,000. In addition, Permata Agro Mandiri has displayed a massive number of "Shyif" products at the souvenir shops / outlets that are its sales partners, and has implemented an even distribution from agents, shops / outlet souvenirs, to distributors. Some market penetration strategies that can be carried out are through price cuts, increased frequency of advertisements, better product displays in stores, the use of innovative distribution tactics, or the multiplication of marketing efforts.
The product development strategy adopted by Permata Agro Mandiri is through the modification of Pia Apple products. The apple pies sold initially had pia skin with a hard texture, so it was modified to become pia apple with a soft but crispy skin. In addition, the addition of pia flavor variants, namely durian and jackfruit pia. Product modification was also carried out on apple brownie products through the creation of dried apple brownie products with sesame seed flavor variants. The advantage of implementing this strategy is the opportunity to utilize the existing distribution system and the reputation of the company that has been known by the market [18].
Alternative strategies is used to improve the Permata Agro Mandiri business through the development of the current business model canvas. Explanation of each strategy, as follow: 1) SO (Strengths-Opportunities) Strategy a. Make improvements to marketing strategies Permata Agro Mandiri's "Shyif" product marketing is done through sales partners and through the website, while marketing educational tours through brochures and websites. The weakness of marketing through sales partners is the emergence of dependence with partners and if there is a problem the partnership relationship can hamper product marketing. Promotion and sales through the website have not been done optimally. Therefore, it is necessary to improve marketing activities at Permata Agro Mandiri through improving marketing strategies. The improvement in marketing strategy aims to facilitate Permata Agro Mandiri in increasing sales of products, tourism services, and market expansion. Marketing strategy planning focuses on the process of resource allocation with marketing activities to achieve goals and as an effort to gain a competitive advantage from competitors [19].
b. Developing tourism and education services The tourism services provided by Permata Agro Mandiri currently only focus on production education tourism services with meeting facilities, welcome drinks, and production visit facilities. Permata Agro Mandiri's tourism and education services consist of three services, namely, educational education production, entrepreneurship, and apple picking tours, all of which indirectly play a role in the introduction of the "Shyif" brand and increasing sales of the "Shyif" product. Therefore, if the three services are developed and run optimally, it will be easier for companies to increase product sales and create the brand image "Shyif". According to Astuti [20] states, the development and utilization of services as an effort to face market competition, one of them is through providing a unique form of service and has a competitive advantage. The existence of competitive advantage in a service development has a positive impact in improving the performance of marketing products and services.
2) WO (Weaknesses-Opportunities) Strategy a. Optimizing social media and e-commerce as online marketing media Permata Agro Mandiri has not optimally utilized social media and e-commerce in marketing its products online because of the limited number of marketing personnel. The existence of information technology such as social media and e-commerce can facilitate Permata Agro Mandiri in reaching consumers, increasing sales, and expanding its marketing reach. Irianto [21] states, optimizing social media and e-commerce in online marketing will provide benefits for companies that use it. Social media in terms of its role in marketing communication can make massive product promotions with relatively small expenditure.
b. Conduct HR training and development activities One of the management problems faced by SMEs is the limited human resource skills. Low professionalism and skills of the workforce is an internal problem of Permata Agro Mandiri. This also has an impact on the company's low productivity and is an obstacle to Permata Agro Mandiri in developing its business. Training and development is needed by employees to improve their abilities, skills and knowledge [22]. 3) Strategy ST (Strengths-Threats). Strategies for positioning "Shyif" products. "Shyif" products are known by customers through their striking color packaging, so customers tend to know the "Shyif" products from the packaging design, not from the "Shyif" logo / brand. This makes Permata Agro Mandiri as a producer less well known and makes it difficult for producers to develop packaging designs, so that product positioning "Shyif" is needed to create brand awareness "Shyif" in the minds of consumers. Herman [23] states, positioning aims to create a good image of the product in the minds of consumers, so that the product will look superior to competing products. 4) WT (Weaknesses-Threats) Strategy Strategies to educate and introduce the brand "Shyif". The "Shyif" brand image that has not been created in the minds of consumers is one of the obstacles in expanding markets and increasing product sales. In general, consumer purchasing decisions are influenced by the brand most preferred, so that the brand can be used as a component of the company's competitive advantage. Companies that are able to create a brand image will be able to attract attention and make consumers always remember a brand [24].