Business Model Innovation of Indonesian Integrated Wood Depot For Furniture Industry
Article Sidebar
Abstract
The wood-based industry is faced with various problems, both internal and external, especially the problem of availability and continuity of raw materials. The study aims to analyses the business model that has been implemented by this wood depot. Then, this study also analyses the feasibility based on the business model innovation of this wood depot initiative. This research uses an analytical framework of the Business Model Canvas (BMC) and Financial Feasibility Canvas (FFC). The Business Model Canvas presents a visual representation of the nine components of a business which are divided into the right (creative side) and left (logic side) on one page. The analysis uses the Financial Feasibility Canvas (FFC) which consists of 6 steps of analysis components consisting of rational investment, capital investments, assumptions, cash flows, financial returns, and decisions. The results of this study show that this business model innovation at this integrated wood depot can strengthen the speed of supply of raw materials and can maintain continuity to the furniture industry. The sustainability of this business model innovation is realized through vertical integration into the furniture industry. Based on the feasibility analysis, this business model has a feasibility in terms of investment for 5 years. In the future, the wood depot in this business model can be applied to industry players in Indonesia.
Keywords: wood depot, financial feasibility canvas, wood-based industry, business model innovation, business strategy
Authors
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).