Sari Roti Goes International
Sari Roti Goes International
Introduction PT Nippon IndosariCorpindo, the holder of Sari Roti brand, is the largest bread producer in Indonesia. Established in 1995 by Wendi Yap, Sari Roti has been growing rapidly until now. In 2010 its net profit increased by 16% from US$10,526,315 to US$ 12,210,526, and in2011 the net sales increased by 33%. Currently, PT Nippon IndosariCorpindois focusing its market in Indonesia with 24 production machines in 7 cities and 3 main product lines: white bread, sweet bread and cakes which also divided into different flavors. The main distribution channels for Sari Roti are chain stores such as 7-eleven and Carrefour and bread agency. As the biggest local bread producer, PT Nippon IndosariCorpindo needs to think about the future of its business. With 90% current market share, it soon will reach its peak. In order to expand its business in this internationalized world, expanding to other countries is the right choice. However, internationalization strategies and research are needed. There are some internationalization strategy and consideration that can be used to internationalize Sari Roti brand which will be explained below.
Internationalization Strategy
Entering Asia’s market At early stage, Upsala model can be used. According toUpsala model, firms gradually intensify their activities in foreign markets. The key features of this model are: firms first gain experience from the domestic market before they move to foreign markets; firms start their foreign operations from culturally and/or geographically close countries and move gradually to culturally and/or geographically more distant countries; firms start their foreign operations by using traditional exports and gradually move to use more intensive and demanding operation modes both at the company and target country level. However, before going international, it is very important to do motivation check, readiness check, and market selection &
Introduction PT Nippon IndosariCorpindo, the holder of Sari Roti brand, is the largest bread producer in Indonesia. Established in 1995 by Wendi Yap, Sari Roti has been growing rapidly until now. In 2010 its net profit increased by 16% from US$10,526,315 to US$ 12,210,526, and in2011 the net sales increased by 33%. Currently, PT Nippon IndosariCorpindois focusing its market in Indonesia with 24 production machines in 7 cities and 3 main product lines: white bread, sweet bread and cakes which also divided into different flavors. The main distribution channels for Sari Roti are chain stores such as 7-eleven and Carrefour and bread agency. As the biggest local bread producer, PT Nippon IndosariCorpindo needs to think about the future of its business. With 90% current market share, it soon will reach its peak. In order to expand its business in this internationalized world, expanding to other countries is the right choice. However, internationalization strategies and research are needed. There are some internationalization strategy and consideration that can be used to internationalize Sari Roti brand which will be explained below.
Internationalization Strategy
Entering Asia’s market At early stage, Upsala model can be used. According toUpsala model, firms gradually intensify their activities in foreign markets. The key features of this model are: firms first gain experience from the domestic market before they move to foreign markets; firms start their foreign operations from culturally and/or geographically close countries and move gradually to culturally and/or geographically more distant countries; firms start their foreign operations by using traditional exports and gradually move to use more intensive and demanding operation modes both at the company and target country level. However, before going international, it is very important to do motivation check, readiness check, and market selection &
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