World Aquaculture Singapore 2022

November 29 - December 2, 2022

Singapore

BUSINESS STRATEGY FOR TOFORD PLASTIC MANUFACTURING CORPORATION TO ENTER INDONESIAN AQUACULTURE MARKET

Patih Fathin Rizal*

 

School of Business and Management

Institut Teknologi Bandung

Patih_rizal@sbm-itb.ac.id

 



Indonesian fisheries industry continues increasing over years , slightly behind China as the largest fish produces in the world. Aquaculture is the fastest growing food production sector in the world as well as one of the potential sectors in fisheries. Every year  Indonesian government set higher growing rate target for fish consumption per capita around 1-2% (Figure 1) . P otential area for  marine  aquaculture in Indonesia is around 12 million hectares,  but only 0.2 million hectares being used (Table 1). For marine aquaculture, HDPE100 material is the best suited for cages raw material because of the durability, corrosion resistance, and low capital investment.

 In analyzing Indonesian aquaculture market, some analysis is made such as PESTEL, Porter’s 5 Forces, STP, Marketing Mix, Value Chain, and SWOT. The result showed that Indonesian aquaculture market still in the beginning phase proven by limited regulation for aquaculture, most of farmers are smallholders with simple technology and limited area, low variety of fishes being raised, lots of potential area haven’t been grabbed by farmers, lots of global competitor but only few of them have presence in Indonesia market.

Based on strategic formulation TOWS and Ansoff Matrix ,  there are 3 solutions for Toford which are having representative agent in Indonesia, become turnkey solution provider, and building pipe factory.

 Representative agents in Indonesia will help Toford to take care some administrations, working on marketing projects, building up relationship

and network, attending and participating

in aquaculture business exhibition, expos, and conferences.

Become turnkey solution provider by having new company that cooperate with other companies will have impact in medium and long term in strengthen competitive rivalry in the market. Building pipe factory aim to establish a subsidiary factory overtime in Indonesia in order to become more efficient in terms of logistics and network issues.