Development Strategy of Cow’s Milk Processing Industry Using Business Model Canvas in Gundaling Farm, Karo Regency, North Sumatera Province, Indonesia

This study aims to analyze the internal factors and external factors affecting the Gundaling Farm cow’s milk processing industry and formulate a development strategy and business model development plan for the Gundaling Farm cow’s milk processing industry using a business model canvas (BMC). The research method is descriptive qualitative method with data collection techniques namely interviews, observations and structured questionnaires. The Business Model Canvas was mapped to facilitate the analysis of the new development strategy. SWOT analysis was chosen to determine the strengths, weaknesses, opportunities, and future threats that the industry will face. This analysis is taken into consideration for internal and external strategy factors. The results of this study are quality and varied products as the main strength, less attractive packaging design as a weakness, a wide open market as an opportunity, and incomplete P-IRT licensing as a threat. The current position of the Gundaling Farm cow’s milk processing industry is in quadrant I, indicating an aggressive strategy. The recommended alternative development strategy is the SO strategy, namely 1) Using quality products to expand the market; 2) Utilize the location for edufarm/fieldtrip. The results of the SWOT analysis were integrated into the nine elements of the business model canvas to produce 8 elements of the business model canvas, namely value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.