Comparison of Porter’s Generic Strategies in Indonesia’s FMCG Companies: A Case Study

Abstract

The competition in the FMCG sector is quite fierce because consumers are sensitive to the prices. Market for FMCG companies in Indonesia is pretty stable. However, as consumers have access to the information needed, they become more selective in choosing the right products. Companies have to develop a strategy to make goods that stand out from their competitors. Porter's generic competitive strategies are one of the most widely adapted frameworks for business strategy formulation. In this paper, the companies' competitive strategy was evaluated using Porter's generic strategies. Then financial performance of each company is assessed, to compare the result of the applicability of Porter's generic strategies. Using Indofood and Mayora as a study case, results have shown that both of the companies have successfully implemented Porter's generic strategies. However, Mayora implementation of Porter's generic strategies have a better positive impact to the financial performance of the company compared to Indofood.