In 2016, the Company's revenues were Rp66,750,317,000,000 higher than in 2015

amounting to Rp64,061,947,000,000 and in 2014 amounting to Rp 63,594,452,000,000. It means

that the revenue of Company were increasing in 3 years. Then, the company also can manage the
cost/expense well so that the revenue of company increasing in 3 years generate good net profit.
In 2016, the company’s net income were Rp 4,984,305,000,000 higher than in 2015 amounting to
Rp 4,867,347,000,000 and in 2014 amounting to Rp 4,866,097,000,000. Then, from the financial
highlight by using profitability ratio, Return On Asset (ROA) ratio in 2016 was 6.1% higher than
in 2015 which is 4.2%, Return On Equity (ROE) ratio in 2016 was 12,1% higher than in 2015
which is 8.9%, and Net Profit Margin in 2016 was 6.2% higher than in 2015 which is 4.6%. So,
we can see that the company keep making good profit and performance. The trends of PT Indofood
can be seen as follow:

2014 2015 2016

Revenue Rp63,594,452,000,000 Rp64,061,947,000,000 Rp66,750,317,000,000
Net Income Rp4,866,097,000,000 Rp4,867,347,000,000 Rp4,984,305,000,000

Revenue
67,000,000,000,000
66,750,317,000,000
66,500,000,000,000
66,000,000,000,000
65,500,000,000,000
65,000,000,000,000
64,500,000,000,000
64,000,000,000,000 64,061,947,000,000
63,500,000,000,000 63,594,452,000,000
63,000,000,000,000
62,500,000,000,000
62,000,000,000,000
2014 2015 2016

Revenue
 Net Income
5,000,000,000,000
4,980,000,000,000 4,984,305,000,000
4,960,000,000,000
4,940,000,000,000
4,920,000,000,000
4,900,000,000,000
4,880,000,000,000
4,860,000,000,000 4,866,097,000,000 4,867,347,000,000
4,840,000,000,000
4,820,000,000,000
4,800,000,000,000
2014 2015 2016

Net Income

Profitability Ratio 2015 2016

Return On Asset 4.2% 6.1%
Return On Equity 8.9% 12,1%
Net Profit Margin 4.6% 6.2%

Profitability Ratio
14
12
10
8
6
4
2
0
2015 2016

ROA ROE NPM

 After we analyze the Competitive strategies and Financial Company, we can see that the
competitive strategies that implemented by the companies is good thing to do. If we compare from
the financial aspect, the company keep making good profit and increasing the revenue in 3 years.
So, the company can keep their generic competitive strategy in order to keep the business.
But, PT Indofood has to anticipate the biggest competitor named “PT Wingsfood
Indonesia”. PT Wingsfood Indonesia also produce the noodles called “Mie Sedap”. PT Wingsfood
Indonesia innovatively using strategy of Low-Cost Provider which is segmented to the Middle-
Low market by offering the price is cheaper than Indomie. PT Wingsfood also innovatively offer
the taste that a bit different (Ayam Bawang) from Indomie because consumer began to boring to
consume Indomie. Even the price of Mie Sedap is cheaper than Indomie, the taste of noddles is
not bad. With this strategy, Mie Sedap can compete with the Indomie (PT Indofood product) that
has been existing.
Then, PT Indofood make the strategy to face the popularity of Mie Sedap by producing
noodle product called “Supermi”. PT Indofood produce Supermi to match the price with Mie
Sedap. Supermie also focused just like Mie Sedap that segmented to the Medium-Low. PT
Indofood produce Supermie with variety of taste (Fried noodles, meatballs, soto flavor, and many
more). But, PT Wingsfood does not innovate the taste of noodles just like PT Indofood did. PT
Wingsfood just use the product of Mie Sedap Ayam Bawang to compete with the noodle’s product
of PT Indofood. So, just using this strategy, PT Wingsfood will hard to win the competition with
PT Indofood that also makes differentiation and innovation.
PT Indofood has to evaluate the strategy in order to understand whether the strategy is fit
to the company or not. The tools that can be used by the company is SWOT Analysis.
Strengths (S) Weaknesses (W)
S1: Strong Brand Image W1: Health Issue

The company has brands that are in the heart of the The substance of noodles is not good for health to be
consumer. The largest market share in Indonesia, reaches consumed everyday
around 70.7%, shows the reputation superiority that
reflects the corporate strength and brand image of the
company.
S2: Variety of Product W2: The innovation does not match with the demand.

The company offers the variety of product for the
customer. The product of company is not only noodles,
but also beverage, snack, and many more.
S3: Strong Research and Development division
Sometimes the variety product does not fulfill the
demand of customer. For example, the company offers
the taste that is not familiar with the costumer’s
tongue.

The Company has great R&D division to develop the

product in order to fulfill the demand of customers.
S4: Large Distribution Channel

The company has wide distribution channel to deliver the

product.
 Opportunities (O) Threats (T)
O1: The demand of noodles is high T1: Competitor

The Lifestyle of people in this era need simple, fast, The competitor can offer different taste just like Mie
instant, taste and not expensive. So, the demand of Sedap Ayam Bawang when the customers feel boring
noodles is increasing. with Indomie
O2: International expansion T2: The substitute product is high

Foreigners like the taste of Indomie which means can be There are many substitute product for noodles, just
new market for company (not just in Indonesia). like bread or rice.
O3: There are many business using Noodles

In this era, there are many business that the core business
offers noodles to the customer. For example is Warunk
Upnormal.

From SWOT Analysis, PT Indofood can analyze the strategies that suitable for the condition of
the company
Strategy SO (Strength-Opportunities)
- International expansion
Expand the selling of product around the world
- B2B marketing
Create new market to the business (company)
that need noodles as core business.
- Diversification new product
Create new product
Strategy WO (Weakness-Opportunities)
- Diverse product with healthier noodles
Create new healthier noodles
- Managing portfolio products better
Create new product that suitable and fit with
customer’s tongue

Strategy ST (Strength-Threats) Strategy WT (Weakness-Threats)

- Re-Branding - Acquisition of company
Create new branding that is fresh for customer Acquisition the company that the product is
loved by customers

Based on the strategies above, PT Indofood has to create strategies such as:
- International expansion
Based on the Financial Statement, information concerning by location of customers is:
Indonesia has the largest customers that generate Rp 31,656,229,000,000 in the year 2016.
Then, there are some countries that has generate large amount of revenue: Saudi Arabia
(Rp 934,081,000,000), Nigeria (Rp 370,755,000,000), Australia (Rp 180,043,000,000),
and many more.

- B2B Marketing
PT Indofood establish entrepreneurial cooperation program or deal the partnership with the
restaurant that need Indomie as the core business. This can be good for the revenue of
company.
 - Create New Product
The highlight was the introduction of premium instant noodles with real meat toppings,
which was very well received by the consumers.

In order to achieve the strategies above, PT Indofood has to achieve Key Success Factors:
- International License Business
PT Indofood has to ensure the license trade the product to the international market. If there
is no license business, the stragegies that has been made cannot be done.

- Established noodles business

PT Indofood has to ensure the restaurants/businesses that need Indomie as the core business
operate well to make the partnership with them.

- Strong Distribution Channel

PT Indofood has to ensure the distribution channel is strong in order to delivery product to
the international market.
REFERENCES

http://www.indofood.com/product/noodles

http://www.idx.co.id/Portals/0/StaticData/ListedCompanies/Corporate_Actions/New_Info_JSX/Jenis
_Informasi/01_Laporan_Keuangan/04_Annual%20Report//2016/INDF/INDF_Annual%20Report_2016.
pdf

http://www.wingscorp.com/content/product/product_list.php?c=22&l=1&b=4&h=1

https://databoks.katadata.co.id/datapublish/2017/01/30/indofood-kuasai-71-pasar-mi-instan-
indonesia