Indonesia Conference Directory

Purpose and background: PT Otsuka Indonesia is a pharmaceutical company that produces clinical nutrition solution with the largest market share in Indonesia. For more than 40 years working in the pharmaceutical business in Indonesia, Otsuka has been working on the regular sector as its main target market. Meanwhile, placing product quality as a guarantee of product strength that is delivered consistently to its customers. Since 2018 Otsuka has changed its market segmentation to JKN (Jaminan Kesehatan Nasional, National Health Insurance) market in accordance with market trends that were fully supported by the Government. This change caused a forcing to do business transformation in order to keep its market position as a market leader. Proper efforts need to be made accordingly so the transformation will be running as well. Otsuka has a superior business unit Clinical Nutrition and Infusion Set Business Unit that supports 85% of the companys sales. The products produced were known to be of the highest quality among competitors with a broad range of products and were marketed by reliable marketers nationwide. In the context of market adjustments, Otsuka has made changes to the segments cultivation by targeting 80% of its sales target in the JKN segment, which was not seriously worked and took a very small portion previously. The JKN program has enormous potential as well as a big challenge in the form of demands for very low product prices. Methodology: The transformation design used is the Indonesian Transformation Model® of PPM which links nine elements of the company to create an innovative, valuable and sustainable results (Tim Manajemen PPM, 2017). The study begins with mapping the companys position using PESTEL Model (Politic, Economic, Social, Technology, Environment, Law) and Porters Five Forces methods for external analysis and Key Success Factor for internal analysis. With the Boston Consulting Group matrix and the Grand Strategy matrix, we obtained companys position and alternative strategic directions. The choice of strategy was then sharpened by using the Decision Analysis method. Readiness of transformation internally was measured by using Quick Assessment® method, to obtain elements with which needed to get top priority for improvement. Followed by the transformation process, we designed an action plan to overcome the gap of transformation readiness and execution of selected grand strategy. Finally, we produced a roadmap strategy for the next three years. Results: The results of external mapping show the potential of the pharmaceutical market for clinical nutritional fluids still has potential to grow, and Otsuka as a market leader still has opportunities to maintain its position. Mapping on the BCG matrix, Otsuka was positioned at the boundary of the cash cow and the star quadrants. It was projected to lead to the star quadrant if Otsuka immediately transforms to adjust market conditions. This statement was corroborated b