Strategic Digital Transformation of Agradaya a Case Study in Indonesian Agriculture

Abstract

This study explores the strategic digital transformation of Agradaya, an Indonesian small and medium-sized enterprise (SME) operating in the agricultural sector with a strong social mission of farmer empowerment and ethical sourcing. Smallholder farmers in regions such as Yogyakarta and the Menoreh Hills face persistent challenges of low productivity, limited market access, and dependence on middlemen, prompting the need for innovative solutions. The purpose of this study is to examine how Agradaya leverages digital platforms to connect farmers directly with consumers, enhance supply chain transparency, and balance commercial viability with social impact. Employing a qualitative case study approach, the research utilizes secondary data from company reports and applies multiple strategic management frameworks including PESTEL, Porter’s Five Forces, SWOT, VRIO, Value Chain, Competitive Profile Matrix, Grand Strategy Matrix, and the Ansoff Matrix. The findings highlight Agradaya’s competitive strengths in farmer empowerment, ethical brand identity, and certified premium products, while also identifying weaknesses in logistics, limited digital infrastructure, and dependency on the founder’s leadership. Opportunities include export expansion and partnerships with wellness influencers, whereas threats stem from climate change and intensifying competition. The analysis underscores that a stewardship culture and investment in digital systems are critical to sustaining growth and ensuring inclusivity for digitally marginalized farmers. The study concludes that Agradaya’s transformation demonstrates the potential of digital tools to drive sustainable agriculture and social entrepreneurship, offering valuable lessons for SMEs in developing economies seeking to integrate social value with digital innovation.