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Cocoa is one of the potential agricultural resources in Indonesia but still lacks the attention of stakeholders to get the best economic value. It is important to encourage the cocoa business industry to capture opportunities in the cocoa processing business in the future. Taman Teknologi Pertanian in Nglanggeran is an SME which is also a business incubator that has produced various chocolate products. The design used in this research was explanatory research with the process of data collection through interviews, observation, and questionnaires. This analysis consists of two steps of weighting and prioritizing. The weighted score of the IFE and EFE matrix is (2.5671; 3.1132). SWOT diagram is used to determine the current position of the company which is on the second quadrant (1.1895;-0.0460) which refers to the S-T strategy. The chosen strategy triggered to do diversification strategy as doing product innovation gradually according to the consumer needs. Concentric diversification for internal can be done by utilizing cocoa peel waste as scrubs, whereas, concentric diversification for external can be done by developing agro-tourism. These strategies support sustainability in the area.