Exploring a Business Model for a Sustainable Stingray leather Industry in Rembang

Abstract

Rembang is rich in marine fishing resources. As the largest marine fishing producers, Rembang has the potential to develop the stingray leather industry. This research attempts to explore a business model that can support the stingray leather industry and its sustainability. Developing a suitable business model is needed for the emerging Rembang stingray leather industry in order to support its sustainability by creating, delivering and adding value. The research looks to answer following questions: (1) What is the nature of the stingray leather industry in Rembang? (2) What is the current business model applied to the Rembang stingray leather industry? (3) What are the barriers in applying this business model? (4) What kind of business model can support the sustainability of the Rembang stingray leather industry? The research used frameworks of SWOT analysis, Porter’s five forces analysis and Business Model Canvas analysis to explore the stingray leather industry and the business within it. The research was conducted in Rembang. The research design is an exploratory study with qualitative approach. The research used a purposive sampling with a snowball sampling techniques to invite respondents. The techniques led to five respondents who have knowledge and experiences in the Rembang stingray leather Industry. The respondents are stingray leather entrepreneur, government officials, researcher and stingray skins supplier. The data collection consists of literature/document review, observation and interview. Interviews were conducted in a semi-structured format using an interview protocols with an open-ended questions. The stingray leather industry depends on several parties, such as governments, stingray skins providers and stingray leather goods manufacturers. The strengths of stingray leather industry in Rembang lies on its location, resources and the human resources capability. The weaknesses include lack of supporting industries, lack of human resources availability and weak business infrastructure. The industry does not free from threats that come from outside the region, such unfair trade in the Yogyakarta market and the penetration of big stingray leather ventures to obtain stingray skins in Rembang. However, Rembang has its customers segment that gradually improved, and the local government provides full support for the entrepreneurs to develop the industry. It is essential to develop the competitiveness of the industry with several advantages. The collaboration among stakeholders in Rembang stingray leather industry could strengthen the industry and encourage new entrepreneurs in the region to do the business. A successful entrepreneur needs a business model to reach the financial viability of the venture. Moreover, a business should consider social and environmental aspect to achieve its sustainability. A business model for the stingray leather business in Rembang should focus on partnerships. The partnerships will create better value propositions for customers and surroundings. In addition, an innovative stingray leather business model will develop the stingray leather industry in Rembang.