Stability is not enough: Preserving Business Sustainability of Cooperative through Market Diversification

Abstract

Koperasi Peternak Sapi Bandung Utara (KPSBU) is a dairy breeding cooperative which produces dairy products. Up to now, around 93,35 percent of its products are delivered exclusively to several big dairy factories. This condition brings pressure to bear on KPSBU in terms of price and any other conditions. To enhance its autonomy, KPSBU needs strategies to use to develop its business. This study aims to analyze the internal-external factors that will affect the KPSBU business system and offer recommendations on strategies for business development. The data collection used in this study is Primary data which obtained by field observations and direct interviews with experts including the internal-external factors that influence the cooperative business; head of manager, production division, and processed milk. At the input stage, we use the internal-external matrix, matching stage with the SWOT analysis, and at the decision stage, we employ the Quantitative Strategy Planning Matrix. The results show that the priority strategies for KPSBU are by optimizing business process digitally (6.17), doing a partnership with the area of tourist attraction to be the supplier of dairy products (5.99), as well as providing training for a dairy cattle breeder in risk mitigation and livestock management (5.84