Business Development Strategy through Blue Ocean Strategy in Increasing Product Competitiveness in Gayo Coffee Farming in Aceh: Sharia Business Perspective

Abstract

This study examines business development strategy through Blue Ocean Strategy in increasing product competitiveness in Gayo coffee farming in Aceh from a sharia business perspective. Gayo coffee is a leading Arabica commodity in Central Aceh and Bener Meriah, yet its global reputation has not fully improved farmer welfare due to price disparity, weak bargaining power, limited market access, dependence on intermediaries, and low value-added processing. This study uses a quantitative field research approach with explanatory strategic formulation. Data were analyzed using SEM-PLS with SmartPLS 3.0 to examine the relationships among price, distribution channels, product quality, Blue Ocean Strategy, and product competitiveness. The results show that price and product quality significantly affect Blue Ocean Strategy, but do not directly affect product competitiveness. Distribution channels have no significant effect on either Blue Ocean Strategy or competitiveness. Meanwhile, Blue Ocean Strategy significantly affects product competitiveness and mediates the relationship between price and competitiveness, as well as product quality and competitiveness. From a sharia business perspective, the proposed strategy emphasizes eliminating exploitative practices, reducing inefficient costs, improving product quality, and creating value innovation through specialty coffee, derivative products, coffee tourism, digital promotion, and direct selling.