PROPOSED ENTRY STRATEGY FOR INTERNATIONAL EXPANSION TO NIGERIA OF PT. KIMIA FARMA, TBK.

• Main Author: Dewi L. Natapoera, Elfandari
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53328
• Institution: Institut Teknologi Bandung

Health is a basic human need. Health is closely related to pharmaceutical products consumed from birth to late age. The close relationship of pharmaceutical products to basic human needs makes the pharmaceutical industry always needed throughout human existence. Along with the increase in production capacity, Kimia Farma, headquartered in Indonesia, is trying to expand the pharmaceutical market to various destination countries, including Nigeria. To enter foreign markets, the firm must determine the preferable strategy according to destination country conditions, industrial conditions in Indonesia, and its internal policies. This research aims to analyze the most relevant entry mode for Kimia Farma to expand into Nigeria, following its commitments, to formulate a strategy of product adaptation and possible development strategies. The relevant study's implementation used the PESTEL framework and Porter's Five Force as an external analysis framework and VRIO as an internal analysis framework. The assessment also carried out using the Franklin R. Root model, which classifies its external and internal environmental characteristics into the most relevant entry mode. The product adaptation formulation used an Integration-Responsiveness Framework, while the strategy formulation used a scenario planning framework. Based on the qualitative analysis results, the author concludes that the most relevant entry mode is a branch office or export subsidiary. The product adaptation under the firm's internal commitment is transnational with some scenario planning of development.