Industry and strategic analysis of Lamno Robusta coffee: An aplication of Multy Criteria
Decision Analysis (MCDA) techniques to analyze a small scale farming group
Volume 4, Issue 6 Muhammad Adam, Fathurrahman Anwar
Published online: 15 December 2018 Article Views: 30
Abstract
According to the United States Department of Agriculture (USDA), world coffee consumption is projected to reach 9.792.000 ton in 2018 as USDA predicts one of the largest coffee producers, Indonesia, to produce 666.000 ton of coffee in 2018. Among many areas that produce coffee in Indonesia, Aceh Jaya District, famous for its Lamno Robusta Coffee, contributes to 0.02% of the total national coffee production. Regardless of its small share in the national coffee market, Lamno Robusta coffee has played a key role in the local market for the last 70 years. This research will apply the descriptive qualitative approach to uncover the strategic positioning of Lamno Robusta Coffee. Three multi-criteria decision analysis techniques such as Porter’s Five Forces Analysis, Strengths Weakness Opportunities Threats (SWOT) Analysis and GE/ McKinsey Matrix will be applied to analyze the internal and external factors and the industry and business attractiveness of Lamno Robusta Coffee. The research will use both primary and secondary data. The primary data will be collected from direct observation in the field, interviews and Focus Group Discussion (FGD) with the stakeholders. In contrast, the secondary data will be obtained from other credible resources. The research shows that Lamno Robusta Coffee is not vulnerable to the bargaining power of buyers, the bargaining power of suppliers, and the threat of substitution products. However, the threat of new entrants will play a key role in increasing potential competition among the existing players in the industry. Concerning the internal and external factors and the business and the industry attractiveness, Lamno Robusta Coffee is considered in a medium position. The results enable stakeholders to formulate a strategy to increase the value for the farmers and consumers.
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To Cite this article
Adam, M. & Anwar, F. (2018). Industry and strategic analysis of Lamno Robusta coffee: An application of Multy Criteria Decision Analysis (MCDA) techniques to analyze a small scale farming group. International Journal of Business and Administrative Studies, 4(6), 251-266. doi: https://dx.doi.org/10.20469/ijbas.4.10003-6
