COMMERCIAL URBAN AGRICULTURE BUSINESS MODEL STRATEGIES: CITY PROXIMITY AND THE CHOICE OF VALUE PROPOSITIONS
DOI:
https://doi.org/10.21837/pm.v23i39.1893Keywords:
Commercial urban agriculture, urban agriculture, low-cost specialisation, differentiation, Business Model Canvas (BMC)Abstract
Driven by urban residents, urban agriculture is advancing Commercial Urban Agriculture (CUA). As CUA evolves within unique geographic and urban settings, there is a necessity to explore sustainable business models. This research employs the Business Model Canvas (BMC) to analyse Malaysia's urban agriculture models, assisting practitioners and policymakers in understanding CUA sustainability. The study reveals that Malaysia's CUA mainly adopts low-cost specialisation, differentiation, and diversification strategies to remain competitive. Distinctive strategies, like organic branding and targeting upscale consumers, bolster farms' market positions. Beyond selling produce, these urban farms enhance their revenue by offering educational programs, food experiences, and leisure activities, thus broadening their economic base. Effective marketing and customer relations cultivate loyalty. Crucially, the findings establish a direct, empirically-driven link between the farm's geographic location (urban vs. peri-urban proximity) and its choice of value proposition strategy, underscoring the significance of spatial planning in CUA's success. This analysis highlights the varied strategies within CUA, emphasising its potential for innovation and long term sustainability.
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