development of bussines model in sentulfresh … · medicinal plants, educational tours for...

46 JOURNAL OF APPLIED MANAGEMENT VOLUME 18 NUMBER 1 MARCH 2020

Rifqi Az Zahid, Arif Imam Suroso, Sufrin Hannan

46

JAM18, 1Received, October 2019Revised, November 2019

January 2020February 2020

Accepted, February 2020

Journal of AppliedManagement (JAM)Volume 18 Number 1,December 2019Indexed in Google Scholar

Corresponding Author:Rifqi Az Zahid, Postgraduate,Management and Business,School of Business IPB Univer-sity, DOI: http://dx. doi.org/10.21776/ub.jam.2020.018.01.04

DEVELOPMENT OF BUSSINES MODELIN SENTULFRESH AGROTOURISM SERVICES

Rifqi Az ZahidPostgraduate, Management and Business, School of Business IPB University

Arif Imam SurosoSufrin Hannan

Management and Business, School of Business IPB University

Abstract: Knowing the problems and circumstances in a company is needed in the face ofbusiness competition, it can be the basis of strategic decision making for the company.Sentulfresh Indonesia has agrotourism products that offer educational activities on thetheme of education on animals, plants, and biotechnology. As a new educational touristattraction, Sentulfresh has the potential of natural resources and market potential that canbe developed. This research uses the Business Model Canvas method to identify its busi-ness elements and then a SWOT analysis is performed on all existing BMC elements to formthe basis of the future BMC idea by using the four-step framework from Blue Ocean Strat-egy. The results of this study indicate that the business model being undertaken needssome improvement and changes to be able to face the existing competition. Starting fromthe development of Key activities, namely the manufacturing of hydroponic plants willcreate a new and attractive value proposition as well as a new educational tourism marketwith broader customer segments as well as more diverse of the revenue stream. While thedevelopment of a value proposition in the form of batik activities will expand the marketreach to junior and senior high school levels, even the adult community and generate newrevenue streams without adding to the promotion costs for the two innovations above.This research still has many limitations, in terms of research objects there are still many thatcan be examined such as standardization of educational tourism, service quality, customersatisfaction, cost analysis etc. In terms of methodology, researchers can then combineBMC with other business methods in the Blue Ocean Strategy Book.

Keywords: Business Model Canvas, Agrotourism, Educational Tourism, Blue Ocean Strat-egy

Cite this article as: Zahid, RifqiAz, A. I. Suroso, and S. Hannan. 2020. Development ofBussines Model in Sentulfresh Agrotourism Services. Jurnal Aplikasi Manajemen, Volume18, Number 1, Pages 46–56. Malang: Universitas Brawijaya. http://dx.doi.org/10.21776/ub.jam.2020.018.01.04

Over the decades there hasbeen a great increasing indiversification in agriculturalactivities such as biomassproduction, direct marketing,natural and landscape man-

agement, and quality food production in the area.Torquati et al. (2015). A concrete example in Indo-nesia about using agricultural land for other purposesis Agro-tourism. Agro-tourism which is part of theagribusiness sector also has an impact as the maindriver of national economic development so the cur-

DIKTI ACCREDITED SK NO. 30/E/KPT/2018 ISSN: 1693-5241 47

Development of Bussines Model in Sentulfresh Agrotourism Services

rent Indonesian economic problems such as eco-nomic growth, expansion of employment opportuni-ties, increasing foreign exchange, equitable distri-bution of welfare and accelerating regional economicdevelopment that can build the economy and pres-ervation the environment, should be able to be solvedproperly and done sustainably Fauzi (2016).

Sentulfresh Indonesia is an agricultural andanimal husbandry area that has various aspects init, there are fish breeding, dairy cows, earthworms,medicinal plants, educational tours for schools,pesantren memorizing the Qur’an and also a yogurtmaking factory. According to Prastiwi andMerinawati (2016), Educational tourism is a tour-ism concept that applies non-formal education aboutknowledge to the student as a tourist visiting an edu-cational tourism atrraction. In these places, visitorscan do tourism activities and learn with a fun method.

According to Infansyah (2017), The learningmethod used in the curriculum 2013 forthe elemen-tary school level is to use a thematic learning ap-

proach by developing creative ideas further by uti-lizing alternative activities offered. Therefore, teach-ers and schools organize a program of activitiesoutside of school that supports thematic learning.Therefore the teacher and the school hold a pro-gram of activities outside the school that supportsthematic learning methods that cannot be done orprovided from the internal school, both teachers andschools. From here we know many words that de-fine these activities such as; Outing class, field trips,study tours, educational tours etc. So, with the ex-istence of activities outside the classroom, it can beconcluded that it can support schools in carryingout the 2013 curriculum set by the government, eachclass or level has its own theme so that the determi-nation of the object of the visit is seen from thetheme being studied by students. As an educationalattraction for schools, Sentulfresh has been operat-ing since 2013 in receiving school visits, Sentulfreshdata number of visitors from 2016 to 2018 can beseen in the following table and figure.

The Table 2 shows several aspects such aseducation tourism or agrotourism service competi-tion, education tourism market share in Bogor dis-trict, the number of connoisseurs of educational tour-ism objects and the number of schools that come toBogor to hold educational tourism activities. WhereSentulfresh as the object of research only gets a10% market share. According to Hadiyati (2010)In the case of competition faced by most compa-nies in various industries, it seems that competitionfor consumers will affect their needs in the market.Companies will get a place in the hearts of consum-ers if everything offered is what they want. A com-pany in its activities becomes mandatory to manage

Jan Feb Mar Apr Mei Jun Jul Ags Sep Okt Nop Des Total

2016 549 614 1147 1239 1639 170 0 0 731 1652 1118 281 91402017 442 2153 3781 2230 1799 92 54 149 1084 1823 3002 710 173162018 731 1793 2144 2621 1270 22 23 249 1304 4163 2447 450 17217

Source: Sentulfresh annual report 2018

Table 1 Number of Sentulfresh Visitor

The data above shows the number of visitorsto Sentulfresh per month, in 2018 Sentulfresh visi-tors come from 193 schools domiciled inJabodetabek. Data obtained by researchers fromthe official BPS website shows that there are 20thousand public and private schools in theJabodetabek area. This market potential creates aneducational tourism competition in the Bogor area.Sentulfresh’s internal data shows that there are 3competitors which are one of the choices of visitorsbefore finally deciding to come to Sentulfresh,namely: Kuntum, Cinangneng and Pasir mukti. Thefollowing are agrotourism market data for Bogordistrict business areas;



services properly so that in principle requires pro-fessional management in marketing, operations andhuman resources, integration of these elements willbe the key to the success of service companies toimprove performance.

With such intense competition, Sentulfresh musthave a business model and one of the business con-cepts used to formulate a business developmentstrategy is the Business Model Canvas taken fromthe Business Model Generation by Osterwalder andPigneur (2010) besides Sentulfresh requires inno-vations that are highly needed in the tourism busi-ness. Research conducted by Rezazadeh et al(2014) and Azhar (2017) uses a methodology fromKim and Mauborgne’s Blue Ocean Strategy Book(2007), which is a 4-step framework for creatingan innovation in tourism that is expected to increasemarket share in competition. The use of aspects ofthe Blue Ocean Strategy has also been carried outby several studies such as Transforming The Na-ture and Scope of New Product Development byPitta and Elizabeth (2012) describing the mappingof product development using three analytical toolsfrom the blue ocean strategy namely Strategy Can-vas, Four Actions Framework, and ERRC Grid. BlueOcean Strategy can also help in creating innovationfor business models in the tourism industry as listedin the Blue Ocean Strategy In Hotel Industry re-search by Ahmet (2015) Developing a Conventionand Event Management Curriculum in Asia UsingBlue Ocean Strategy and Co-Creation with Indus-try by Djones (2010), Blue Ocean Strategy for Tour-ism Development in the Bangka Belitung IslandsProvince by Hamsani and Valeriani (2014) and TheEffects of E-Tourism to the Development of the

Tourism Sector in Indonesia by Jonathan andTarigan (2016).

Based on the explanation above, Sentulfreshas an agrotourism service provider needs to do stra-tegic planning to deal with existing market competi-tion. This research aims to; Identifying the businessmodel of Sentulfresh school education tourism ser-vices then identifying the factors that are strengths,weaknesses, opportunities and threats forSentulfresh and proceed with designing a new busi-ness model that can be used as a strategy to de-velop Sentulfresh school educational tourism ser-vices in the future.

From this research, it is expected to providebenefits for the SentulfreshEdufarm Program, asinput and advice for owners or management in im-proving performance and services related to schooleducation tourism and also as a basis for strategicdecision making related to the sustainability of thiseducational tourism. The next benefit for the Aca-demic Community, research with this method canbe a reference material for research with a focuson business innovation, especially in agribusiness andagriculture-based tourism. For researchers, this re-search is useful in order to enrich insight and knowl-edge related to business management and its appli-cation in the future if the writer has the opportunityto own a business.

METHODLocation and Time of Research

This research was conducted for 2 months, inMay and June 2019 and located in the Sentulfreshranch area which became an educational tourist

Name Visitors Number of Schools Marketshare Sources

Sentulfresh 17217 193 10 % Annual Report 2018Kuntum 51836 579 30 % EksternalCinangneng 49000 547 27 % Portal NewPasir Mukti 58340 651 33 % ReasearchTotal 176393 1970 100 %

Source: Sentulfresh Annual Report 2018

Table 2 Marketshare of Agrotourism in Bogor



attraction for schools located in Cadasngampar vil-lage, District Sukaraja, Bogor Regency.

Data Types, Sources and Study AnalysisThe type of data used in this study is primary

data and secondary data. Primary data obtained bydirect observation and depth interviews with ques-tionnaires to the parties directly related to the imple-mentation of Agrotourism activities at Sentulfresh.Secondary data obtained from several sources suchas research library research, annual reports,websites, etc. Data processing and analysis in thisstudy were carried out in stages, as follows:1. Identification of development models in

Sentulfreshagrotourism services: The processof identifying the Sentulfresh developmentmodel is carried out through observation andinterviews with respondents on nine key ele-ments of the canvas business model, namely:customer segments, value propositions, chan-nels, customer relationships, revenue streams,Key resources, key activities, key partnerships,and cost structure.At this stage, the researcherused the FGD method to determine the pointson each BMC element as well as determiningthe priority points on each element with a poll-ing system where the points with the most voteswould be the main points on that element.

2. SWOT analysis of each key element of thecanvas business model: Analysis of internal andexternal factors in this study was conductedthrough observation, interviews with externaland internal respondents regarding the nine el-ements of the business model canvas. From theresults of the analysis strength and weaknesseswill be obtained as internal factors and oppor-tunities and threats as external factors. Fromthe results of the SWOT analysis on the devel-opment of the Sentulfresh business model is usedas a reference in determining the focal point ofthe value innovation idea in the design of a pro-totype of the Sentulfresh business developmentmodel.At this stage, the researcher involved allrespondents in only 3 BMC elements namely

Customer Relationship, Value Proposition andChannel. Whereas in the other 6 elements re-searchers only involved respondents who dealdirectly in the implementation of educationaltourism activities at Sentulfresh. Determinationof SWOT points for each element is done bythe FGD and Polling method to determine pri-ority points for SWOT for each element thatexists with a Likert scale of 1 to 5 where 1strongly disagrees and 5 is strongly agree

3. Designing a business model through the BlueOcean Strategy. : The design of a businessmodel is the development of a business modelby utilizing the opportunities and strengths thatan organization has. The formulation of thedesign of this new business model is done withBlue Ocean Strategy using a four-step frame-work analysis tool and a write-off - reduce -enhance - create a scheme.At this stage, theresearcher conducted an analysis based on re-search data that had been collected from thebusiness model analysis and SWOT analysisof each BMC element and adjusted to followthe previous research flow.

Conseptual FrameworkThe design of the development of a future busi-

ness model at SentulfreshAgrotourism Servicesbegins with a descriptive analysis by analyzing thecurrent conditions. This identification is needed todetermine the goals to be achieved by the companyin accordance with the objectives to be achieved.After the company’s current condition is mappedthrough 9 block elements in the BMC, the next stepis to identify the business model of the developmentof Sentulfresh’s school educational tourism serviceswith Swot Analysis on each existing BMC element.The identification of the results of this swot is thebasis for designing future business models. The for-mulation of this new modle design is done by BlueOcean Strategy using a four-step framework analy-sis tool with a write-off-reduce-improve-createscheme, the following is an overview of the frame-works in this study:



RESULTSAnalysis of Business Model Canvas

The following are the results of interviews andFGDs conducted by researchers on 15 Sentulfresh

internal employees and 36 external people who wereSentulfresh’s partners, visitors and tourism expertsin the implementation of educational tourism activi-ties;

Figure 1 Conceptual Framework

Figure 2 Sentulfresh Business Model



The results of the above identification are veryimportant for management to be able to regularlyassess the business model in the company, it is animportant activity in management that allows theorganization to evaluate the state of its market posi-tion and then adjust it. In this discussion, the re-searcher wants to conduct an evaluation using the

SWOT approach. With 21 correspondents for theChannel element, value propositions and customerrelationships and other elements require only 30 re-spondents. Where researchers see how thestrengths, weaknesses, opportunities and threats thatexist in 9 blocks of Sentulfresh’s business model

Table 3 Swot Analysis of each BMC element

Elemen

Customer Segment

Value Proposition

Channel

Customer Relationship

Reveneu Stream

Key resources

SWOT

StrengthWeaknessOpportunity

Threat

Strength

Weakness

OpportunityThreat

Strength

Weakness

Opportunity

Threat

StrengthWeaknessOpportunityThreat



Point SWOT

The customer base is well segmentedDifficult to get new customers (repeat orders)There are new markets, namely: junior high, senior high school and adultcommunityCompetitors threaten markets, consumers cross, competition is fast

There is a strong synergy between product and service, a unique valuepropositionOften receive complaints in the form of themes that do not match prospec-tive visitorsThere are other customer needs that are not metSubstitution services

Effective and efficient channels, easy to see and in accordance with thesegmentDoes not provide economies of scope and there are slow response andmiss communicationA new channels that support business operations, the use of informationtechnologyWebsite server down and internet network down

Strong customer relationships and fit with consumersLow transfer costs and weak brandsImprove relationships with customers who crossProspective buyers do not get complete information from the website

The profit from the margin is very largeThe income stream isn’t muchThere is a lost of deman that consumers are willing to payCompetitors capture the market and Sentulfresh’s profits

Main resources are difficult to replicateExpensive price to get the main resourceParents’ market demand for sentulfresh’s resources cannot be fulfilledSuppliers provide quality resources



Elemen SWOT Point SWOT

Key Activity

Key Partnership

Cos Strcture

StrengthWeaknessOpportunity

Threat



Run key activities efficientlyKey activities are easy to emulateMiddle and high school students are not compatible with existing planteducationThe weather in Bogor is quite extreme

Focus on working together if necessaryPartner relationships create conflictCross selling with partnersPartners can collaborate with competitors

Sentulfresh’s operational costs are efficientDon’t benefit from the economics of scaleCompetitors raise pricesPartners raise the price of cooperation

4 Steps Frame WorkThe design of a business model prototype that

is combined with the principle of blue ocean strat-egy raises four main questions, namely what can be

created, eleminate, rise and reduce which refers tocurrent and future conditions. That can be shownby the picture below

Figure 3 4 Steps Framework model on Sentulfresh Model Business



DISCUSSIONSentulfresh Busines Model Canvas

The results of the business model analysis onSentulfresh using the Canvas Business Model shows9 business elements that are the basis and an im-portant part of the sustainability of the educationtourism business. Sentulfresh offers educationalactivities on farms with 3 different themes namelyplant themes, animal themes, and biotechnologythemes. Activities carried out in the area of thefarm that can accommodate 450 children a day andchildren will be guided by an attractive and enter-taining tour guide.

The target market that Sentulfresh set only re-volves around kindergarten and elementary schoolteachers in Jabodetabek which are achieved in vari-ous ways through webiste, social media, telephone,email and also whatsapp. The selection of thesechannels is considered very in accordance with thecharacteristics of school teachers who are aged 25to 50 years. Sentulfresh builds relationships withcustomers in interesting ways such as advertise-ments, social media posts and also visit reports.

Sentulfresh has resources that help the educa-tional tourism business it runs can develop, 12 hect-ares of livestock breeding area and also livestockelements such as plants and animals that are usedas educational objects. Animal care, plants, and eventpreparation are always done every day when thereis a visit, hospitality training to the tour guide is alsodone periodically to provide satisfying service. In

its activities Sentulfresh cooperates with several par-ties to ensure the feasibility of services providedsuch as catering and also photographers, the mainincome is only from the sale of educational tourismtickets and livestock products, namely milk and yo-gurt.

SWOT Analysis for each elemenFrom the results of the swot, each element can

be seen how the strengths, weaknesses, opportuni-ties owned by Sentulfresh in running the educationtourism business. It can be used as an evaluationfor future improvement, this study aims to providesolutions for Sentulfresh in strengthening themselvesin facing market competition by innovating in busi-ness.

The discussion of Sentulfresh’s agrotourismservice business model evaluation using the BMCapproach raises several points such as the opportu-nities that each business block has. Opportunitiesthat arise can be an innovation idea that can be de-veloped, business model innovation ideas can comefrom anywhere and the nine elements of the exist-ing business model can be a starting point for inno-vation to occur. Transformative business model in-novations affect more than one building elementwhich according to (Osterwalder 2010) innovationcenter business models are driven by resources,driven by offers, driven by customers and driven byfinance.

Inovation point Opportunity Information

Infrastruktur Development of key activities of plant parts OppoertunityOffering Another Cunsumer needs OpportunityCustomer Lost of demand new segmen OpportunityFinance Reduction in plant part costs, and new revenue streams Opportunity

Table 4 Inovation Point of Sentulfresh

From the innovation point table above foundseveral opportunities that exist at Sentulfresh’s BMCpoint of innovation, from the idea of innovation in

the form of making a vehicle for hydroponic veg-etable centers and batik activities which will be ex-plained in more detail in the following discussion.



Designing A New Prototype Business ModelUsing 4 Steps Framework

The results of the search and data processingconducted by researchers in the SentulfreshAgrotourism for School, researchers offered twoideas for designing business models based on BlueOcean Strategy where these two ideas are inter-connected with one another. The first idea of plan-ning a blue ocean strategy based business modeloriginates from the focal point of innovation, namelykey activities and value propositions. The creationof a new educational vehicle in the form of hydro-ponic vegetable plants is the beginning of the plan-ning of this business model idea where its functionis to utilize the main resources owned by Sentulfresh

and will become a tourist attraction because hydro-ponic plants have a very high educational value, theproduce from these hydroponic plants can also besold to Sentulfresh visitors other than school chil-dren ie parents of students so that the number ofrevenue streams at Sentulfresh increases. Increas-ing the role of employees in plant areas from onlymaintaining to managing a hydroponic vegetableplant is a focal point for innovation driven by keyactivities while the educational vehicle for hydro-ponic vegetables for visitors is driven by a point ofinnovation proposition (value proposition). These twopoints of innovation will influence the other elementsof the block in the canvas business model.

Figure 4 Sentulfresh Future Business Model

Infromation :



The second idea comes from the focal point ofoffering innovation namely Value proposition,Sentulfresh as an educational tourism object alwaysprovides educational activities and is in accordancewith the theme of children’s education. In this casethe idea of business planning based on the blueocean strategy, the second is the addition of batikactivities in educational attractions for schools. Theaddition of the value proposition also affects otherbusiness block elements of the canvas model. Atpresent, the target market of Sentulfresh is veryspecific, namely only for family planning, kinder-garten and elementary schools. The addition of ba-tik activities is expected to be able to expand theeducational tourism market to junior high, Senior highschool and even adult community who want theability to craft such as batik. According to Alfianaet.al (2017) The ability to make a batik art taughtby a coach or teacher is able to make students ableto create, work, develop creativity, express feelings,talents, motivation and be independent.

CONCLUSIONS AND RECOMMENDA-TIONSConclusions

Based on the results of research on the identi-fication of the elements of the canvas business modelat Sentulfresh, it can be seen that from the Cus-tomer Segment element, visitors who come are KB,kindergarten and elementary school children in theJabodetabek area. The value proposition offered iseducational activities at the farm with 3 educationalthemes, a large place, and an attractive tour guide.The current customer relationship is through adver-tisements and services that prioritize personal as-sistance. The Reveneu Stream received bySentulfresh comes from the sale of entrance tick-ets, education packages and yogurt sales. Key re-sources in this business are physical assets, humanresources and intellectual property. Key partnershipscurrently being undertaken are Catering, Shuttle Car,TourGuide, Village Government and Photographers.The main cost structure is employee salary, mainte-nance, operational, production and promotion costs.The results of the identification of the current modelwith a SWOT analysis show that the idea of de-

signing a business model for future tourism busi-ness development. This research offers two busi-ness model planning ideas based on the analysis ofa four-step framework of blue ocean star educa-tion that can be carried out on Sentulfresh’s educa-tional tourism in future business development.

RecommendationsBased on the results of the research carried

out, the advice given by researchers regarding thedevelopment of Sentulfresh attractions in the futureis sensitivity to what is needed by consumers, con-ducting periodic research on visitor perceptions andalso research on visitor satisfaction so there aremany innovations, improvements, and changes thathelp the development of service businessesSentulfresh educational tour. The management mustconduct training on hospitality to employees,Sentulfresh must also have a legal entity that is reg-istered as a tourist attraction in the Bogor district.This research still has many limitations, in terms ofresearch objects there are still many that can beexamined such as standardization of educationaltourism, service quality, customer satisfaction, costanalysis etc. In terms of methodology, researcherscan then combine BMC with other business meth-ods in the Blue Ocean Strategy Book.

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