PT. Tritama Multisindo Lestari is a private company that has been doing business in the promotional items industry for 6 years. The company is owned by three owners – it was initially a partnership before converting to private limited status. Though not too big, it is a fairly stable company. The promotional items industry is a rapidly growing industry in Indonesia, due to the increasing demand for souvenirs designed to promote a particular company to its customers. PT. Tritama Multisindo Lestari has a group of consistent clientele who repeatedly use its services for various occasions. Entering its 7th year of existence, the owners of PT. TML realize that the company has fairly established itself in the industry, and is seeking to expand their business. The two expansion options that the owners are considering are product development and market development. Due to limited funds and the risk of failure, they can only undertake one type of expansion at a time. This internal assessment aims to evaluate which type of expansion is most suitable for PT. Tritama Multisindo Lestari given their current financial situation and also the condition of the industry among Indonesia’s growing economy. Product development is basically extending their product line but selling it to their current market, while market development is keeping their product line the same but expanding to a different market. Both options are very enticing given the current economic climate in Indonesia, but the long term gains and losses of each options must also be considered in order to make a sustainably profitable option.
Research Question: Should PT. Tritama Multisindo Lestari further expand their business in the promotional items industry? If yes, should it be through product or market development?
In order to answer the research question thoroughly and accurately, this business IA is going to cover topics from a variety of syllabus. The background theory...