Industry and strategic analysis of Lamno Robusta coffee: An aplication of Multy Criteria Decision Analysis (MCDA) techniques to analyze a small scale farming group

Muhammad Adam and Fathurrahman Anwar
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Muhammad Adam: Faculty of Economics and Business, Syiah Kuala University, Banda Aceh, Indonesia
Fathurrahman Anwar: Faculty of Economics and Business, Syiah Kuala University, Banda Aceh, Indonesia

International Journal of Business and Administrative Studies, 2018, vol. 4, issue 6, 251-266

Abstract: According to the United States Department of Agriculture (USDA), the world coffee consumption is projected to reach 9.792.000 ton in 2018. Indonesia as one of the largest coffee producers is predicted by USDA to produce 666.000 ton of coffee in 2018. Among many areas that produce coffee in Indonesia, Aceh Jaya District that is famous with its Lamno Robusta Coffee contribute to 0.02% of the total national coffee production. Regardless 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 descriptive qualitative approach to uncover the strategic positioning of Lamno Robusta Coffee. Three multy criteria decision analysis techniques such as Porters Five Forces Analysis, Strengths Weakness Opportunities Threats (SWOT) Analysis and GE/ McKinsey Matrix will be applied subsequently to analyze the internal and external factors as well as the the industry and business attractiveness of Lamno Robusta Coffee. The reaseach will used both primary and secondary data. The primary data will be collected from direct observation in field, interviews and Focus Group Discussion (FGD) with the stakeholders. While the secondary data will be get from other the credible resources. The research shows that Lamno Robusta Coffee is not vulnerable to the bargaining power of buyers, bargaining power of suppliers, and threat of substitution products. However, the threat of the new entrants will play a key role in the increase of potential competition among the existing players in the industry. Concerning to the internal and external factors as well as the business and the industry atractiveness, the Lamno Robusta Coffee is considered in medium position. The results enable stakeholders to formulate strategy to increase the value for the farmers and consumers of Lamno Robusta Coffee.

Keywords: Coffee; MCDA; porter’s five forces analysis; SWOT analysis; GE/ McKinsey matrix (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:apa:ijbaas:2018:p:251-266

DOI: 10.20469/ijbas.4.10003-6

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