Currently Parker Hannifin, a US based world leading diversified manufacturer of motion and control technologies, is only enjoying a market share of 4% out of a huge market of around USD 286million in Indonesia (the data on the motion and control market potential in 2010). This indicates that the market for Parker product in Indonesia is very promising.

In addition, the Parker portfolio in the Indonesia market is segmented into 21% for Mining, 16% for Transportation, 12% for Oil & Gas and yet another percentage for General industries (many segments). This data indicates that the mining sector is the biggest contributor to Parker's sales performance. Therefore, Parker should be keeping focus on this segment.

As for the mining segment alone, the current and past performance was mainly focusing on 3 products: Connector, Filtration and Hydraulic that have a market share of 28%, 5% and 1.3% respectively. From this data, it is clear that filtration and hydraulic products occupy a very small part of the company's portfolio.

To increase the market share, different tools and analysis should be used, such as PESTEL and PORTER, SWOT and Canvas Strategy. Whilst analyzing these markets and competition in Indonesia, it is recommended that Parker action the following initiatives:



* Provide Total Solution to Customer

* Cost Leadership

* Streamlining Value Chain

* Outstanding Sales Forces

* Growing Customer Base

* Strengthening Relationship with Distributor

By implementing these initiatives, it's expected that Parker will increase their sales and occupy a bigger market share in their particular products.



Research Location : PT. Parker Hannifin Indonesia



Read at Library Only.