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An Integration of Business Model Canvas on Prioritizing Strategy: Case Study of Small Scale Nontimber Forest Product (NTFP) Enterprises in Indonesia

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Abstract

Nontimber forest products (NTFPs)‬ are one of the forest products that can provide direct benefits to communities living around forests. Some of the most used NTFPs in Indonesia are the stems, leaves and fruit of candlenut trees. Candlenut fruit is widely used in the cosmetics, pharmaceuticals, and biodiesel industries and is generally used as a cooking ingredient in Indonesia. However, only a limited number of people or community groups manage the forests to increase their income from this business. The aim of this study is to identify business models to serve as the basis for developing alternative business model organizational plans for candlenut extraction. A case study approach was adopted, with in-depth interviews used to collect data. The integration of Business Model Canvas, SWOT Analysis, Internal Factor Evaluation and External Factor Evaluation matrix were used to determine alternative strategies. The results exhibit that the value proposition is the largest barrier for the improvement of these businesses. The Positioning Quadrant SWOT shows that internal factors (strengths and weaknesses) are low, indicating that the candlenut business position is internally weak. However, the scores of external factors (opportunities and threats) are higher implying that there is a great opportunity in the development of candlenut. The alternative strategies to develop candlenut business are to maintain relationships with customers and partners; increasing the quantity and quality of products through technology inputs, promotion, product diversification, and partnership with the government.‬‬

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Acknowledgements

The authors thank the financial support of the Directorate General for the Research and Community Service Institution of Hasanuddin University

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  1. Faculty of Forestry, Hasanuddin University, Jl. Perintis Kemerdekaan Km. 10 Tamalanrea, Makassar, 90245, Sulawesi Selatan, Indonesia

    Makkarennu, Asar Said Mahbub &  Ridwan

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  1. Makkarennu
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  2. Asar Said Mahbub
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  3. Ridwan
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Correspondence to Makkarennu.

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Makkarennu, Mahbub, A.S. & Ridwan An Integration of Business Model Canvas on Prioritizing Strategy: Case Study of Small Scale Nontimber Forest Product (NTFP) Enterprises in Indonesia. Small-scale Forestry 20, 161–174 (2021). https://doi.org/10.1007/s11842-020-09462-5

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