Proposed Strategy for Pharmaceutical Industry (Case Study: PT Bio Farma Persero)

Abstract

PT Bio Farma (Persero) is a state-owned company that runs its business in the pharmaceutical industry, namely Vaccines and Anti-Sera products, so it has an important role to play in improving the quality of life in Indonesia. In addition, Bio Farma already has the capability to export its products because it already has WHO pre-qualifications. PT Bio Farma (Persero) in distributing its products has two market sectors, namely the domestic and international sectors. In running its business, the company has several busines issue, namely Halal Product Regulation, High Rate of Raw Materials, Declining of Export Sales, Polio Eradication, and Global Covid Outbreak. To analyze the internal condition, it used PESTEL analysis, Porter Five Forces and Competitor Analysis. To analyze the external condition, it used Resource Analysis and Value Chain Analysis are used. From all of these analyzes, a SWOT Analysis will be obtained to formulate the right strategy, and to propose Corporate, Business, and Functional Strategies that can be carried out by the company. The right corporate strategy is the Diversification Strategy, this strategy aims to develop the company's products and markets to increase its competitiveness. Meanwhile, the right Business Strategy is Integrated Cost Leadership/Differentiation, this strategy aims to provide unique value to the company's products and create value chain efficiency.