Nevertheless, Indonesia still considered as good market for this adhesive industry, this attract many multinational players to produce the same product as the company and they also even build a manufacturer here in Indonesia to support the market. This creates high competition among the players. The intensity of competition among the existing competitors in the market is high, because there are number of small, equal or even higher competitors. Industry is also growing, even through customer have low switching cost. However fixed cost are high resulting huge production and reduction in prices. These situations make the reasons for advertising wars, price wars, modifications, ultimately costs increase and it is difficult to compete.


Supervisor: Alex Munaf