Analysis Strategy for Agro Tourism Business Development in

Temiang-Batam in the Era of Disruption

Maysir Murni, and Sri Zuliarni

Applied Business Administration, Politeknik Negeri Batam, Jl. Ahmad Yani, Batam, Indonesia

Keywords: Agro-tourism, SWOT Analysis, Business Development, Disruption

Abstract: This research was conducted to determine factors from the internal and external environment that influence

the development of the Sei Temiang-Batam agro-tourism business as well as alternative strategies that can

be used in the development of this agro-tourism. This research uses mixed methods, qualitative analysis is

carried out to obtain an overview of the company's internal and external factors, while quantitative analysis

is to determine the right strategy for the company. Data collection was carried out by observation,

documentation and questionnaires. The data analysis technique was performed using a SWOT analysis.

From the results of this study, it can be concluded that: (1) The strength of agro -tourism is the relatively

cheap entrance ticket price and has a Tour Guide. Meanwhile, it is an investment opportunity for investors

to develop natural resources in the agro-tourism sector. (2) There are four types of alternative strategies with

10 programs to be used for agro-tourism development. The condition of the Covid-19 pandemic has an

impact on the agro-tourism business, such as the temporary closure of educational tourism activities, while

production activities and land leases are still being carried out. This agro-tourism can adopt virtual tourism

technology in the face of the Covid-19 pandemic.

1 INTRODUCTION

In the age of increasingly rapid development of

competitiveness, there is a higher and more difficult

challenge than before. Disruption is an innovation

that will replace the entire old system in a new way

and potentially replace old players with new ones

(Kasali, 2017). In disruption of old technology that is

completely physical will be replaced with digital

technology, produce something new and more

efficient, also more useful. Savings in physical

business costs and making things smart are what

have happened in this era of disruption. The era of

disruption is a phenomenon when people shift or

replace physical activities that use technology.

In the agro-tourism business, it is also inseparable

from the influence of the era of disruption, where

agriculture and animal husbandry experience

developments in their business. The application of the

latest technology in agriculture has an important role

in agricultural development (Andrianto, 2014). Agro-

tourism is defined as a combination of tourism and

agriculture, where visitors can visit fields, farms and

animals to buy food, enjoy events and participate in

local events. Its aim is to broaden knowledge,

recreational experience and business relations in

agriculture. The location of Batam Island, which

borders directly with Singapore and Malaysia, makes

Batam one of the cities in the Riau Islands, which

in 2019 was designated as the second-largest

contributing city for foreign tourists after Bali. Batam

has many tourism potentials such as nature tourism,

religious tourism, shopping tourism, agro tourism,

culinary tourism, sports tourism, and historical

tourism.

The Batam Entrepreneurship Agency (BP),

formerly known as the Batam Authority, is a central

government institution / agency. One of the programs

for the development of the area carried out by BP

Batam in particular the Business Development

Planning, Services and Pricing Bureau is to build the

Sei Temiang Agro Tourism area so that it can become

an icon and trade mark that Batam is not only in the

form of industry, but there is a green tourism area to

balance industrial activities and trading. Nowadays

agro-tourism is increasingly being developed as a

form of environmental preservation and agricultural

land resources, in addition to plantations being an

economic sector developed for the welfare of the

Murni, M. and Zuliarni, S.

Analysis Strategy for Agro Tourism Business Development in Temiang-Batam in the Era of Disruption.

DOI: 10.5220/0010355000440051

In Proceedings of the 2nd International Conference on Applied Economics and Social Science (ICAESS 2020) - Shaping a Better Future Through Sustainable Technology, pages 44-51

ISBN: 978-989-758-517-3

community, plantations are also able to become a

tourist attraction for tourists, not only can see the

expanse of plantations, but also can see the process of

gardening that is done by local farmers. Not

infrequently some agro-tourism involves tourists in

the existing plantation process so that tourists can

experience directly the activities being seen.

Based on interviews with Irwan, Head of Sub

Directorate Utilization of Facilities, said that the

initial formation of Sei Temiang agrotourism based

on SK Batam BP Head No. 23 of 2015. Sei Temiang-

Batam agro-tourism is not the only agro- tourism in

Batam, the main attraction of this agro- tourism is a

tour guide that will accompany visitors and not only

one plant variance but many variants consisting of

plantation zones, farm zones and fisheries zones. Sei

Temiang Agro-tourism offers education-based tours

for school children, where each year the number of

visits increases, during 31

October 2019 the number of visits by 1,861

visitors increased by 371% from 2018 with only 395

visitors. Sei Temiang Agro Tourism also follows

the changing trend, where the payment system

already uses applications in its management, as well

as digital marketing using social media in the form of

Instagram (@agromarinabp) because the current

market share is millennial generation who are very

familiar with technology. While the results of the

interview with Tumirah, Kasubbag. The Sei Temiang

Batam Agro-tourism development plan has

formulated a basic concept for the direction of

development of this area, including cultivation and

tourism functions, which are outlined in the initial

concept with 3 main zones, namely the agricultural

zone, the livestock zone, and the recreation zone.

Apart from the zoning concept, there are also sub-

zoning and illustrations, the concept of vegetation,

facilities and utilities that have been planned in the

preliminary design.

Based on the previous explanation, there are still

many potentials in the Sei Temiang agro- tourism

area that can be developed as educational tourism

destinations, so the authors are interested in taking

the title "Analysis of Sei Temiang-Batam Agro-

Tourism Business Development Strategy in the Era

of Disruption".

1.1 Problem Formulation

Based on this background explanation, the problem

that exists is how to identify strategies that can be

used in the development of Sei Temiang Agro-

tourism, then there are 2 (two) problem formulations,

namely:

1. What factors of the internal and external

environment influence the development of Sei

Temiang Agro-tourism with SWOT analysis?

2. What alternative strategies can be used in

developing Sei Temiang Agro-tourism with

SWOT analysis?

1.2 Research Objectives

The purpose of this study is to develop the existence

of Sei Temiang into one of the tourist attractions in the

form of agro-tourism areas in Batam City. After an

explanation of the background that underlies the

formulation of the problem in this study, the

objectives of this study are:

1. To identify internal and external environmental

factors that influence the development of Temiang

Agro Tourism with SWOT analysis.

2. To recommend an alternative strategy for

developing Sei Temiang Agro-business in the era

of disruption with SWOT analysis.

2 METHOD

This type of research uses quantitative methods and

qualitative methods with a strategic management

approach using SWOT analysis, presented in tables

and descriptions where qualitative analysis is carried

out to obtain an overview of the company's internal

and external factors, while quantitative analysis is to

find out the right strategy for the company. Based on

Sugiyono (2018) in a book entitled "management

research methods", it means that combination

methods can be combined but used interchangeably,

while data collection techniques can be combined.

2.1 Research Focus

To simplify and clarify the understanding of

important factors used in this research, the Research

Focus is proposed, namely analysis in developing

business strategies based on internal factors, namely

production and operations, finance, human resources

and marketing, and external factors based on the

threat of new entrants, level of competition, social

and technology.

2.2 Research Subjects

The sample used for this study is expert respondents

who are competent to provide an assessment of the

business development strategy in Agro Tourism

because they know the conditions that occur within

Analysis Strategy for Agro Tourism Business Development in Temiang-Batam in the Era of Disruption

the company. Expert samples also provide internal

and external analysis of Agrotourism. The number of

respondents used was as many as 5 people, namely

Operations and Maintenance Managers, Commercial

Managers, Finance and General Managers, Kasubdit.

Strategy and Risk Management Initiative and Head of

Development and Business Cooperation. The

sampling method used is nonprobability sampling,

i.e. not all population elements can be selected using

purposive sampling techniques where the definition

of the sample is based on predetermined criteria.

2.3 Data Collection Techniques

2.3.1 Observation

The observations in this study were written

descriptively, which accurately observed and

recorded phenomena that occurred, and also knew the

relationship between aspects of this phenomenon in

the form of geographical and demographic

conditions, as well as tourism potential, taking into

account environmental conditions or phenomena on

the ground. Data and information can be presented in

the form of quantitative or qualitative data tables,

pictorial drawings or maps in the study area, and

photo- visualization as material for analysis and

explanation.

2.3.2 Documentation

Documentation is a method for obtaining data and

information in the form of reports or information that

can help in conducting research in the form of books,

archives, documents and photographs of the

agritourism situation in Sei Temiang.

2.1.3 Questionnaire

Questionnaire or questionnaire contains questions or

statements that can be answered in the form of a

questionnaire. The preparation of the questionnaire

was carried out after analyzing the internal and

external factors of agrotourism. This questionnaire

was used to determine the weight and rating of the

study.

2.4 Stages of Data Processing

The data processing technique that will be used is by

using inductive techniques, namely from facts and

events that are known concretely, then generated into

a general conclusion based on empirical facts about

the research location.

Figure 1: Processing Stages

Data processing steps can be carried out after the

data has been collected through observation,

documentation and questionnaires at the data

collection stage. Furthermore, evaluation of external

factors and evaluation of internal factors is carried

out, then the analysis stage is carried out using the

TOWS matrix, IE matrix, space matrix and GS

matrix.

3 RESULTS AND DISCUSSION

The results of identifying strengths and weaknesses

as well as opportunities and threats can be used to

compile the TOWS matrix, external internal matrix ,

space matrix, grand strategy matrix.

3.1 External Internal Matrix

The IFE ( Internal Factor Evaluation ) matrix and the

EFE ( External Factor Evaluation ) matrix are

determined based on the results of an environmental

analysis, to determine the rating and weight of each

internal and external factor.

ICAESS 2020 - The International Conference on Applied Economics and Social Science

Table 1: IFE Matrix

Power

Weight

Rating

Score

Beautiful scenery

0.083

0.248

Strategic tourist location

0.087

0.262

extensive tourist sites, consisting of various tourist objects

0.092

0.369

have a pretty good information system

0.092

0.369

the price of admission is relatively cheap (around Rp. 15,000 / person)

0.107

0.427

Have a Tour Guide

0.097

0.388

Total Strength 0.558

2,063

Weakness

Promotion that has not been intensive and intense

0.068

0.136

lack of facilities and infrastructure available (toilets, gazebos for education)

0.083

0.165

not yet available on the spot bookings

0.058

opened specifically for students

0.092

0.184

lack of human resources in the management of organizations

0.078

This agrotourism is not yet known by the market, so it does not yet have a marketable brand

0.063

Total Weaknesses 0.442

.684

Total Internal Factors

2,748

Based on the results of the internal factor evaluation

matrix (IFE), the main strength of Sei Temiang-

Batam Agro Tourism is the price of tickets which are

relatively cheap and have tour guides with the highest

scores of 0.427 and 0.388. Both of these strategic

factors have an internal impact on the company. The

internal environment has a large impact and has

become an important force for competition in tourism

or agro-tourism.

According to IFE matrix analysis, it is known that

the total strength score for Sei Temiang-Batam Agro

Tourism is 2,063 and the total score for weakness is

0.684. This shows that respondents looked high

enough on the strength factor and relatively small

response to weakness. The IFE total value of 2.748

shows that the internal conditions of the business

environment that affect Sei Temiang-Batam Agro

Tourism are in strong or above average conditions,

because the higher strength scores compared to the

weakness score indicate that in developing Sei

Temiang-Batam

Agro Tourism can use its strengths

to overcome

existing weaknesses

External strategic factors that are a major threat to

Sei Temiang-Batam Agro Tourism are consumer

factors that have the freedom to search for and visit

other attractions and the relatively high intensity of

competition in agro-tourism businesses or businesses

with scores of 0.175 and 0.175, respectively.

Table 2 . EFE Matrix

Opportunity

Weight

Rating

Score

Investment opportunities for investors to develop natural resources in the field of agro-

tourism.

0,092

0,368

The tourism sector is increasingly developing and in demand.

0,088

0,351

The number of tourists continues to grow.

0,083

0,250

Tendency of consumer desires to switch to nature tourism (agro-tourism) / travel back to

nature.

0,088

0,351

The tendency of the community to hold a family gathering / gathering.

0,070

0,211

The development of internet technology can facilitate business transactions and promotions.

0,092

0,368

Easy road access, because it is on a busy route through the community.

0,083

0,250

Total Opportunities

0,596

2,149

Threat

Consumers have the freedom to search and visit other attractions.

0.088

0.175

The number of other agro-tourisms is emerging.

0.083

The development of other agro-tourism businesses is very rapid and has certain characteristics.

0.083

The intensity of competition in business or agro-tourism business is relatively high.

0.088

0.175

Covid-19 Pandemic

0,061

0,123

Total Threats

0.404

0.640

Total External Factors

2,789

Analysis Strategy for Agro Tourism Business Development in Temiang-Batam in the Era of Disruption

Based on the EFE matrix analysis it is known that

the total score of opportunities for Sei Temiang-

Batam Agro Tourism is 2,149 and the total score for

the weakness is 0.640 and the total EFE matrix score

is 2,789. This shows that the external conditions of

the business environment that affect Sei Temiang-

Batam Agro Tourism are in good condition, because

the business opportunities owned by Sei Temiang-

Batam Agro Tourism can overcome the existing

threats.

The IE matrix shows the strengths and successes

of the company's strategy by looking at scores on

cells in the IE matrix. Based on the total score on the

IFE and EFE matrices, the scores were 2.748 and

2.789, respectively. The score is an input for the IE

matrix analysis which will later be mapped to the IE

matrix, so that the company's current position can be

determined. Determining business position is

important for companies in choosing alternative

strategies to deal with competition and changes that

occur in the business being run.

Figure 2: IE Matrix

The company's strategy in the expected position

is market development and product development

strategy. Market penetration strategies are strategies

to increase markets for products or services through

stronger marketing efforts.

Product development strategy is a strategy to

increase sales by promoting existing products or

services. Product development strategies can be

achieved by developing new products that have

special characteristics and are different from

competitors. The strategies produced in the IE matrix

only produce alternative strategies, without

implementing more technical strategies at the

company level. Therefore, the IE matrix is equipped

with a SWOT matrix, so that the resulting strategy

can be developed in the SWOT matrix analysis.

3.2 Swot Matrices

The SWOT matrix develops four alternative

strategies based on strengths, weaknesses,

opportunities , and threats for the company. The

four alternative strategies are the SO (strength-

opportunity) strategy, the ST (strength-treats)

strategy, the WO (weaknesses-opportunity) strategy,

and the WT (weaknesses-threat) strategy The purpose

of the SWOT matrix is to collect as many strategies

as possible for the company to use. The selection of

the main strategies of the SWOT matrix is adjusted to

the company's position and is complementary to the

IE matrix analysis that has been made previously.

Based on the results of the SWOT matrix analysis on

Sei Temiang-Batam Agro Tourism, ten alternative

strategies were obtained consisting of three

alternative SO strategies, four alternative WO

strategies, two alternative ST strategy and one

alternative WT strategy.

ICAESS 2020 - The International Conference on Applied Economics and Social Science

Analysis Strategy for Agro Tourism Business Development in Temiang-Batam in the Era of Disruption

3.3 Space Matrix

The formula for finding the coordinates is as follows

So, the coordinates are at ( 0.689; 0.754).

From the calculation of these factors, it can be

described in the Space diagram, can be seen in the

picture below

Figure 3. Space Matrix

From this graph it appears that the right strategy

for Sei Temiang-Batam Agro-tourism is an

aggressive strategy. The characteristics of this

aggressive strategy are: market penetration strategy,

market development, agro-tourism development,

integration (forward, backward and horizontal

integration), diversification.

3.4 Grand Strategy Matrix

The Grand Strategy Matrix is compiled based on the

internal and external environmental conditions of Sei

Temiang-Batam Agro Tourism combined from the

IFE and EFE matrices. Based on the results of the

analysis of internal factors using the IFE matrix

obtained a weighted score of 2.748. While the results

of the analysis of external factors using the EFE

matrix obtained a weighted score of 2.789.

Figure 4. Grand Strategy Matrix

Sei Temiang-Batam Agro Tourism has a fast

market growth and a strong competitive position as

evidenced by the IFE Matrix Agro-tourism of 2,748

and EFE Matrix of 2,789. This causes the Grand

Strategy matrix to be in quadrant I, there are several

strategies that can be used in this quadrant are product

development, market development, market

penetration, backward penetration, Forward

integration (forward penetration), related

diversification (concentric diversification).

Sei Temiang-Batam Agro Tourism is in a strong

position and has a good branding in the community,

so this agro-tourism should focus more on:

1. Adding more adequate infrastructure to cope with

increasingly aggressive competitors. Support

facilities & infrastructure that support agro-

tourism activities that prioritize local and natural

uniqueness but are able to provide convenience,

comfort and safety for tourists. These facilities

can be in the form of transportation &

accommodation facilities, telecommunications,

or other facilities developed according to the type

of agro- tourism being developed.

2. Cooperating with investors who are financially

sound and have international and domestic

tourism networks. Although the source of funds

for development is not a cause for concern

because they come from the state, it would be

better to be able to get funds from investors, so

that the state budget can be allocated for the

development of other assets.

3. The incessant promotion in all social media.

This agro-tourism can also create virtual tourism

services, by taking virtual walks in various zones

such as plantations, animal husbandry and fisheries

found in this agro- tourism. VR applications in

tourism include virtual reality travel experiences, VR

ICAESS 2020 - The International Conference on Applied Economics and Social Science

tourism content for social media or websites, and

destination tours. In this virtual tour, the tour guides

will tour around the tourist attraction and the trip will

be broadcast live streaming via video conference.

While on a virtual tour, the tour guides will provide

an explanation of these tourist destinations.

4 CONCLUSION

The condition of the Covid-19 pandemic has an

impact on the Sei Temiang-Batam agro-tourism

business such as the temporary closure of educational

tourism activities, while production and land leasing

activities are still being carried out. This agro-tourism

can adopt VR technology in tourism by collaborating

technology and tourism, this is a form of effort to deal

with the threat caused by the Covid-19 pandemic.

Based on the results of the analysis and discussion

of this research, there are internal and external factors

that affect the Sei Temiang-Batam agro-tourism

business as well as recommendations for various

alternative strategies that can be used by this agro-

tourism, the conclusions that can be drawn are as

follows:

1. Based on the results of the IFE matrix analysis,

the main strength of Sei Temiang-Batam Agro-

tourism is the relatively cheap entrance ticket

price and has a Tour Guide, while the main

weakness of Agro-tourism Sei Temiang-Batam

is the unavailability of bookings on the spot, due

to the management of Agro tourism in Sei

Temiang-Batam. not a department dedicated to

general tourists, this makes Sei Temiang-Batam

Agro-tourism can only be ordered on request.

EFE matrix analysis shows that the external

environment which is the main opportunity for

Sei Temiang-Batam Agro-tourism is an

investment opportunity for investors to develop

natural resources in the agro-tourism sector,

while the main threat of Sei Temiang-Batam

Agro-tourism is that consumers have the

flexibility to seek and visit other tourist objects,

and the entry of the Covid-19 pandemic in Batam

City is a new threat that must be faced by agro-

tourism, where agro-tourism must still survive

the pandemic.

The reason the authors suggest as above, is because

Sei Temiang-Batam Agro Tourism is not yet well

known to the public.

2. Based on the SWOT analysis recommendations

for business development strategies in Sei

Temiang-Batam Agro-tourism, namely ten

aggressive strategies, including maximizing

strategic location and improving service quality,

as well as attracting investment from various

parties to be able to add agro-tourism facilities,

providing affordable prices for increasing

business activities , as well as adding conceptual

variants of tourist objects and discounted prices

to attract visitors, coordinating with the Public

Relations and Protocol Bureau for promotional

assistance outside Batam City and even

neighboring countries such as Singapore and

Malaysia, promoting more actively and

aggressively through electronic media (social

media) and print media and make promotions

with certain holiday packages for the public,

apply the development and use of technology in

each tourist attraction and in the work system in

order to optimize existing potential maximally,

build adequate facilities and infrastructure a will

give consumers a sense of comfort, improve the

quality and number of human resources in Sei

Temiang-Batam Agro-tourism, look for

cooperation partners who are experts in the field

of agro-tourism management, increase

production and rental services for land use, make

improvements such as renovation and

maintenance of existing facilities and

infrastructure, as well as implementing virtual

tourism services and collaborating with land

tenants in the Sei Temiang agro area and other

tourist attractions around Batam so that they can

make different tour packages or do joint tour

packages. The condition of the Covid-19

pandemic has no significant effect on the Sei

Temiang-Batam agro-tourism business, because

the production process in plantations, livestock

and fisheries is still running, it's just that

educational tours are temporarily closed to

reduce the spread of Covid-19, especially in

Batam City. In this regard, this study helps agro-

tourism to carry out the right strategy in dealing

with existing threats.

REFERENCES

Andrianto, T. (2014). Pengantar Ilmu Pertanian: Agraris,

Agrobisnis, Agroindustri, dan Agroteknologi.

Yogyakarta: Global Pustaka Utama .

Kasali, R. (2017). Disruption. Gramedia Pustaka Utama .

Analysis Strategy for Agro Tourism Business Development in Temiang-Batam in the Era of Disruption