Formulating a Business Strategy for Herbal Company (The Case of PT. XYZ)

Abstract

The large potential in the chemical, pharmaceutical and traditional medicine industries raise many new challenges for players in the industry, especially for MSMEs. The purpose of this study is to analyze the external and internal environment of PT. XYZ, formulate strategic alternatives and strategic priorities for PT. XYZ's business development, and mapping program recommendations from alternative strategies in PT. XYZ's business development. The analysis tool used is the QSPM method with SWOT analysis. Then mapping program recommendations from alternative strategies is carried out using the strategy architecture method. The results of the formulation with the SWOT matrix produce eight alternative business strategies with a focus on market penetration and product development. The results of business strategy priorities based on the company's current conditions are 1) Managing licensing by utilizing intensive support from BPOM (online assistance, 50% PNBP fee discount, and free lab testing); 2) Expanding the marketing of extract product manufacturing services, simplicia, and contract manufacturing; 3) Maximizing marketing channels through digital media; 4) Develop new product ideas and innovations in the herbal industry; 5) Collaborating with other certified parties to use production facilities; 6) Maintaining the quality and variety of products; 7) Strengthening partnerships with resellers to minimize marketing costs. Keywords: Competitive Strategy, Herbal Industry, MSME, Strategy Architecture, SWOT, QSPM.