Founded in 1971, PT Krakatau Steel is one of major steel mills that offer various types of products, through its other of group they also involve of company water, electricity, steel, industrial engineering, industrial, ports, services, information technology, and medical services. Located in the city of Cilegon, Banten, have an office center on Jl. No. 5 Industrial Cilegon. Company started commercial operations in 1971. In addition to always improve the business activities and continously made efforts to meet the responsibility for product quality, safety, security and environment.

Corporate Vision.

* An integrated steel company with competitive edges to grow continously toward a leading global enterprise.

Corporate Mission.

* Providing the best-quality steel products and related services for the prosperity of the nation

* To achieve its mission and mission PT Krakatau Steel has established its group as:



10 Subsidiaries pf PT. KS.

* PT. KHI Pipe Industry

* PT. Krakatau Wajatama

* PT. Krakatau Engineering

* PT. Pelat Timah Nusantara

* PT. Krakatau Information Technology

* PT. Krakatau Daya Listrik

* PT. Krakatau Tirta Industry

* PT. Krakatau Industrial Estate Cilegon

* PT. Krakatau bandar Samudra (Port)

* PT. Krakatau Medika Center

Company Culture Our Values are:

Competence

Will reflect te ability of self-belief and spirit to anhance knowledge, skills, expertise, and mental attitude for the sake of sustainable performance improvements

Integrity

Reflect a high commitment to any aggrement, rules and regulations and applicable law, through the loyalty defend the interests of the profession in the company

Reliable

Reflects the readiness, response and speed in responding to the commitment and promise, with the ability to synergize the various increase custumer satisfaction and trust.

Innovative

reflects the willingness and ability to create new ideas and implementation of better processes and improve the quality of work.

PT. Krakatau Steel as iron and steel produce, facing the several competition in Indonesia market, has to formulate and implement its strategy in order to survive, profitable and satisfy the customers.



In general strategic issued faced by the country's steel industry are:

The government is still confrinted with a dilemma in improsing import duty on steel products. The import duties on steel products are not yet harmonized between upstream and downstream products. Dumping allegation against China Large surplus after over expanded its steel industry Chine exported its steel products in cheap prices including to Indonesia resulting in marketing problem for local producers nitably PT KS. PT KS, therefore filed anti dumping petition with the government against China. In the past 3 years Indonesia's imports of steel shot up from US$1.74 billion in 2003 to US$ 4.66 billion in 2005. Imports surged both in volume and value amid rising prices to follow growing demands mainly from the automotive and construction industries before the oil fuel price hikes in Oct. 2005. The oil fuel price hikes caused a market slump resulting in a decline in demand for steel in 2006. The increase in the fuel prices and electricity tariff weakened the competitivess of the country's steel prices and electricity tariff weakened the competitiveness of the country's steel products. In addition the steel industry is no longer efficient with old machines. The problems faced by the steel indystry results in low capacity utilization. Many factories operate at less than 50% of their installed capacity. Some could not even survive the difficulty and were closed.

In conclusion and recommendation I use some literature review for PT Krakatau Steel to solve the problems are:

1. Marketing Mix

2. SWOT analysis

3. Porter's Five Forces.



Research Location : PT Krakatau Steel



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