ANALYSIS AND PRIORITY OF COMPETITIVE ADVANCEMENT FOR ARABICA COFFEE-JAVA COFFEE BONDOWOSO IN INDONESIA

Kurniawan, Bagus Putu Yudhia (2016) ANALYSIS AND PRIORITY OF COMPETITIVE ADVANCEMENT FOR ARABICA COFFEE-JAVA COFFEE BONDOWOSO IN INDONESIA. International Journal Of Applied Business And Economic Research, 14 (14). pp. 10265-10280. ISSN 0972-7302

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Abstract

Coffee is one plantation commodity and playing an important role in national economyand employment provider. Indonesia has rather complex problem, ranging from upstream (onfarm) to downstream (off farm). It also occurs in Bondowoso-Indonesia as one centers of arabicacoffee producer in Indonesia. The phenomenon of lower production and productivity of Java CoffeeBondowoso, higher market demand coupled with declining stocks can provides an opportunity toenhance the competitiveness of Java Coffee Bondowoso to meet the domestic and export marketsdemand. This study purpose is to analyze the competitiveness and formulating a strategic priorityto improve the competitiveness of Java Coffee Bondowoso. The analysis technique used is thePolicy Analysis Matrix (PAM) to determine the competitiveness of Java Coffee Bondowoso.Alternative strategies from SWOT analysis and the priorities are determined by AnalyticalHierarchy Process (AHP). The results showed that Java Coffee Bondowoso, both for export anddomestic markets, has comparative and competitive advantages. Comparative and competitiveadvantages of Java Coffee Bondowoso for domestic market are better than the export market. JavaCoffee Bondowoso has most favorable conditions because it has a lot of opportunities and strengthsthat can be used to improve the competitiveness. The needed strategy in these circumstances is tosupport the policy of aggressive growth (growth-oriented strategy) with main priority strategy toimprove the competitiveness of Java Coffee Bondowoso with market diversification to obtain salesgrowth by expanding export markets and increasing the coffee consumption to meet domesticmarket

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