Alternative Market Entry Strategy Development for Jungheinrich Company in Indonesia

ABSTRACT Companies seeking to expand their presence must prioritise the selection of the most appropriate market entry strategy in a global business environment that is undergoing rapid change. By investigating different strategies to entering the material handling equipment (MHE) market in Indonesia, this study seeks to maximise revenue and establish a strong brand identity for Jungheinrich, a well-established leader in this industry. Notwithstanding its current collaboration with PT Kobexindo Tractors Tbk, a domestic participant, Jungheinrich has experienced a decrease in revenue expansion in Indonesia relative to its rivals. This has prompted a reevaluation of the company's present approach to entering the market. The principal objective of this study is to ascertain the optimal alternative market entry strategy that would enable Jungheinrich to leverage revenue prospects and bolster brand awareness in the MHE sector of Indonesia. In pursuit of this objective, the research is directed by a number of goals. To begin, an examination is undertaken of the performance of the collaboration between Jungheinrich and Kobexindo in Indonesia, with the intention of comprehending the intricacies of the current arrangement. Following this, elements impeding the efficacy of the existing market entry strategy are identified in order to identify specific domains that require enhancement. Additionally, the study assesses a variety of alternative approaches to entering the market that Jungheinrich may consider, such as licencing, wholly owned subsidiaries, joint ventures, strategic alliances, and franchising. Every strategy is evaluated in light of its prospective advantages and disadvantages, taking into account variables including risk, cost, and growth potential. Ultimately, the research concludes by recommending the optimal alternative market entry strategy for Jungheinrich in Indonesia, in light of the conducted analysis. This provides the company with actionable insights that can be utilised to enhance its growth and competitiveness within the Indonesian MHE market. The study's contribution to Jungheinrich's strategic decision-making process, specifically in optimising its market entry strategy in Indonesia's rapidly expanding MHE market, is what renders it significant. Through an exhaustive examination of alternative modes of market entry and a meticulous evaluation of competitors, the objective of this study is to furnish significant insights for organisations grappling with intricate market entry choices in ever-changing business landscapes. In conclusion, it is anticipated that the outcomes of this study will not solely provide advantages for Jungheinrich, but also make a scholarly contribution to the wider domain of international business strategy by shedding light on efficacious approaches to entering markets that are customised to Indonesian conditions. In summary, this study suggests that Jungheinrich should implement a two-stage market entry approach in Indonesia. This would involve establishing a representative office initially, and subsequently forming a joint venture. It is advisable to employ proactive adaptation strategies and sophisticated risk mitigation measures in order to effectively navigate the intricate Indonesian market environment. This conclusion signifies the commencement of a revolutionary trajectory that will lead to Jungheinrich attaining market leadership and long-term prosperity in the Material Handling Equipment sector of Indonesia.