Reformulation of Softcapsule Business Strategy to Face DF Company’s Internal – External Challenges and Opportunities

Abstract

The year 2020 has turned out more challenging than people could have ever imagined. KLBF, and DF, a subsidiary of KLBF also affected by this pandemic, coupled with displacement of its pareto products to GOF and SF. This study aims to formulate new strategies for DF to weather internal-external challenges and capture new opportunities through exploitation of soft capsule business. The research method used strategic management steps such as SFAS analysis and SWOT TOWS Matrix. The study used primary data as a result of interviews from related parties, including top management of KLBF, resulted in several new strategies which could be divided into three groups. SO strategy, through smart packaging, new manufacturing facilities, and segmented markets. ST strategy, by development of carrageenan as gelatin replacement. WO strategy, through contract development and open innovation. All of new strategies will be structured in an ecosystem model that can guide the company’s business.