PT. IGAR JAYA (TGAR) is a public-listed-local-owned company which is run" under PT. ENSEVAL, an Indonesian prominent pharmaceutical and medical producer. In 1990 the company sold part of its shares to public and listed in the Jakarta Stock Exchange.

The company produces three product lines of which are glass, plastic packaging and disposable syringes. Since the last four years, PT. IGAR has experienced a deteriorate financial performance, a small market and growth, a change in the usage of ampoules and vials and competition from the experienced and stronger financial overseas new entrant.

To anticipate to this, a joint venture is the solution. However what should PT. IGAR know about joint venture, strategic issue, how should this new company be managed and how this new company could improve the competitiveness?.

There are two main reasons why PT. IGAR JAY A choose joint venture of which are:

a) Joint venture is a way to enter foreign market of peripheral interest to become a part of the mainstream of corporate activity.

b) Although many joint ventures successful, the risk of failure of international joint venture remains significant.

The study will focus on the glass product and on the evaluation of expected performance for the first phase of joint venture formation which covers 5 years time horizon.



We will analysis 3 aspects such as:

a) The industry and competitive analysis, the industry change in driving forces, the strength of competitive forces, the competitor's position of rival companies and competitors moves prediction.

b) The company internal situation and competitive position. In this, we will discuss SWOT analysis, company relative position in the competition, company's strategic issues and problem.

c) The company strategic action and assessment such as joint venture strategic decision and partner selection



Research Location: PT. Igar Jaya Glass

Supervisor: Prof. Dr. Wagiono Ismangil

Accepted on [1996]



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