1. Key interventions: logic
Business
unit dev’t
Capacity
building
Systemic change
Participatory approach
Farmer group as unit of intervention
Product development
Core market actors and private sector
End user
Enabling environment:
Infrastructure
Information
Institutions
Financing
Regulations
Business Model
Action research & capacity building
Key interventions:
Awareness and capacity building
Value chain development
Market systems improvements
Product development: develop a shared idea, at the same time, share a developed idea

2. Key interventions: market system
LINK methodology: A participatory guide to business models that link smallholders to markets / Mark Lundy, Gertjan Becx, Nancy Zamierowski, Alexandra Amrein, Jhon Jairo Hurtado, Erika Eliana Mosquera, Fernando Rodríguez. -- Cali, CO : Centro Internacional de Agricultura Tropical (CIAT), p. -- (CIAT Publication No. 380)
LINK methodology: A participatory guide to business models that link smallholders to markets / Mark Lundy, Gertjan Becx, Nancy Zamierowski, Alexandra Amrein, Jhon Jairo Hurtado, Erika Eliana Mosquera, Fernando Rodríguez. -- Cali, CO : Centro Internacional de Agricultura Tropical (CIAT), 2012.
171 p. -- (CIAT Publication No. 380)
New Business Models for Sustainable Trading Relationships Project managed by the Sustainable Food Lab in collaboration with Catholic Relief Services (CRS), the International Center for Tropical Agriculture (CIAT), the International Institute for Environment and Development (IIED), and Rainforest Alliance (RA).

3. Generic Strategies Scope Source of competitive advantage
Cost leadership
Differentiation
Cost focus
(emphasizing cost-minimization within a focused market)
Differentiation focus
(pursuing strategic differentiation within a focused market) -
Broad
Scope
Porter's generic strategies are ways of gaining competitive advantage – in other words, developing the "edge" that gets you the sale and takes it away from your competitors. There are two main ways of achieving this within a Cost Leadership strategy:
Increasing profits by reducing costs, while charging average prices.
Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs.
Simply being amongst the lowest-cost producers is not good enough, as you leave yourself wide open to attack by other low-cost producers who may undercut your prices and therefore block your attempts to increase market share.
Differentiation involves making your products different from and more attractive than those of your competitors. This will typically involve features, functionality, durability, support, and also brand image that your customers value.
To make a success of a Differentiation strategy, smallholders need:
Good research, development and innovation.
The ability to deliver high-quality products, through certified germplasm and seedlings, quality control, etc.
Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.
Narrow
Source of competitive advantage

4. Locations Gunungkidul: smallholder teak and bamboo
Lombok & Sumbawa
West Timor
Gunungkidul: smallholder teak and bamboo
Lombok and Sumbawa: smallholder teak, other timber, tubers
Flores: bamboo
West Timor: medicinals, oils, and natural dyes
Flores

5. Example in West Timor:
Cost focus – narrow/niche market – high value addition – competitive advantage – form farmer group as business unit – increase bargaining power – lower transaction costs - alternative livelihoods – increased household income
Drawing on the initial results of the Kanoppi2 project activities, this activity will be developed into a “shared-value model” where private companies marketing timber and NTFPs generate economic value for the companies, farmer producers, and local traders. The models will be operationalised through private-sector facilitation, in collaboration with the project team and government extension agencies.