Business Model Innovation : A Case Study Nitya

Abstract

A scarcity of grass in Jabodetabek area makes cattle fattening process become costly and more time-consuming. This makes farmers need to find alternative source of food to make fattening process still affordable. This is where Nitya Feed, a cattle feed from seaweed produced by Nitya company, comes as a solution for farmers. However, Nitya still does not have a solid business model yet. The purpose of this study is to find the most suitable business model for Nitya. Initially, Nitya has designed a business model in the form of membership and packaged-food sales. This study uses a qualitative method by conducting semistructured interview on ten cattle farmers. The interview was conducted by comparing Nitya’s designed business model with farmer’s behaviors and their willingness to pay. The interview’s results show that Nitya’s business model is in accordance with the farmer’s behavior. Therefore, membership and packaged-food sales are the most suitable way to transfer Nitya’s value to cattle farmers.

Keywords: Cattle feed, Business model, Customer behavior, Willingness to pay, Nitya