The strategy of revitalizing the business model of herbal medicine small enterprises in the post-pandemic era

Abstract

The jamu (herbal medicine) industry in Indonesia experienced significant expansion during the COVID-19 pandemic. However, subsequent to the abatement of the pandemic, a substantial number of enterprises engaged in jamu production faced insolvency precipitated by a pronounced downturn in demand for herbal remedies. This study aims to identify how a small enterprise responds the market changes in the post-pandemic market and how to build new strategies based on the changes. Focusing on an Indonesian jamu small enterprise, namely AIG Bunda Nisa, this study implemented a qualitative longitudinal case study design based on nine aspects of the business model canvas (BMC) including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure (Toro-Jarrín et al., 2016). The SWOT analysis was conducted to formulate the most suitable strategy to be applied to each aspect of BMC. The results showed that most aspects have attack and improve strategy. Concentration on the proficient management of extant organizational assets and the optimization of the role of social media are the suggested actions for AIG Bunda Nisa to survive in the post-pandemic era. The strategies proffered may serve as viable alternatives and sources of inspiration for similar enterprises with commensurate circumstances.