Competitive Force 1: Rivalry among Existing Firms

Industry Growth Rate

Sumber:
wartaekonomi.co.id

• There were no sales made to any single

• No individual customer had total
transactions of more than 10.00% of net
Sumber:Bloomberg, MSC Research sales.
• Full-year growth: 1,5% (2,4% excluding
Spreads category)
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customer with a cumulative amount
exceeding 10% of the consolidated net sales
• Full-year growth: 4.6% and EBIT margin of
12.5%, largely due to higher sales volume
and average selling prices by the CBP Group.
 Competitive Force 1: Rivalry among Existing Firms
Concentration and Balance of Competitors Degree of Differentiation and Switching Costs

• There is expense reimbursement between related parties

• Despite challenges stemming from the increasing

stratification of the market and the intensity of the
competition, Refreshment was able to turn around
the business in 2018 to achieve solid growth.
Meanwhile, the strength of our key brands in Wall’s
Ice Cream, such as Cornetto, Paddle Pop, Heartbrand
and Magnum, have kept Unilever Indonesia in its
market leading position in the Refreshment category.
Sumber: owler.com
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• The business landscape for FMCG has remained
intensely competitive, with more players entering
Indonesia and spending more on sales and marketing.
Prevailing against these challenges, total sales grew by
8.9% to Rp38.71 trillion, while EBIT margin decreased to
14.9% from 15.3% in the previous year.
 Competitive Force 1: Rivalry among Existing Firms
Scale/Learning Economies and the Ratio of Fixed to
Variable Costs Excess Capacity and Exit Barriers
• Commitments for the purchase of fixed assets and inventories
amounted to Rp315 billion (2017: Rp280 billion) for future asset
maintenance and additional capacity.
• In 2018, the Company reported a total capital expenditure of Rp1.1
trillion. The capital investment was allocated for capacity expansion,
mixing lines and/or packing lines in our factories.

• In its business operations, Indofood • The Group has various contracts to acquire fixed assets and development
capitalizes on economies of scale and a
• Despite significant cost and currency of plantations totaling Rp1.68 trillion
resilient business model with four • Anticipating growth opportunities in local and export markets,
pressures, which resulted in a decrease in complementary Strategic Business Groups
gross profit of 0.6%, we continued to drive manufacturing capacities for dairy and flexible packaging operations
(“Group”), namely: Consumer Branded
margin progression through more rigorous were expanded during the year (2019)
Products (CBP), Bogasari, Agribusiness,
management of operating costs. and Distribution
• In flour mills, looking at progressive technology
Total asset upgrades and capacity expansion to elevate
2018 efficiency, productivity and competitiveness
(in Millions 19,522,970 96,537,796
of Rupiah) • In Agrobusiness Group, the Surabaya refinery was
expanded by another 300,000 tonnes per year,
while a new palm oil mill in Central Kalimantan is
targeted for completion in 2019.

• In Dairy Division, the total production capacity was

Sumber: Laporan Tahunan Unilever 2018 upsized by about 15%.
Sumber: Laporan Tahunan Indofood 2018
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