CORPORATE STRATEGY OF KIMIA FARMA IN DEVELOPING THE BUSINESS IN COSMETIC INDUSTRY TO INCREASE THE PROFIT

• Main Author: PARAMITHA SATYA (NIM 29316072), GINA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27542
• Institution: Institut Teknologi Bandung

BPJS Kesehatan, through the JKN (National Health Insurance) program, is implemented to assist Indonesian people in medical expenses, especially for the underprivileged. One of them is by recommending generic drugs because it has a relatively low price. Generic drugs are recommended as an alternative to the high price of medicines because 90 percent of the raw materials of drugs are still dependent on imports. This condition impacted the decrease of profit margin of the pharmaceutical companies in Indonesia. <br /> <br /> Kimia Farma, the largest pharmaceutical company in Indonesia, also experienced a decrease in profit margin since the JKN program lasted. Therefore, to be able to continue developing the company, Kimia Farma decided to expand its business besides pharmacy business. One of them is by developing its business in cosmetics industry. The development of the cosmetics industry in Indonesia shows a rapid growth. It can be seen from the number of Indonesian people who want to spend a huge amount of money to purchase beauty products. This situation makes the demand of cosmetic products are increasing swiftly. <br /> <br /> The purpose of this final project is to know what is the best strategy that could be done by Kimia Farma to develop its business in cosmetics industry, because at this time the company is shortage on the special labor and suitable technology to produce cosmetic products. This final project will be analyzed based on the external analysis of cosmetic industry and company’s internal condition, as well as corporate strategy analysis and candidate company analysis that will cooperate with Kimia Farma in the form of acquisition, merger, or joint venture. The best companies will be selected using the SMART analysis supported based on the analysis results of benefits and costs of each company. The analysis is focused to help Kimia Farma in providing solutions to solve the problems that occur. <br /> <br /> Data collection is done by using primary data and secondary data. Primary data obtained from the qualitative method, which is from the interview with the management who are understand and part of the cosmetic project. Secondary data is obtained from company data and candidate companies data, as well as related journals and news on topics discussed by the author. <br /> <br /> The research finding shows that the corporate strategy that Kimia Farma should do is acquiring cosmetic company. Because by acquisition, Kimia Farma will also gain the access to the competent labors and suitable technologies to produce cosmetic products and no longer have to subcontract other cosmetic companies.