What's cooking? Indonesia's kerosene to LPG conversion program

Abstract

Subject area

Strategic market entry; international business; marketing.

Study level/applicability

MBA/MA in management; international business; postgraduate.

Case overview

This case is based on a real-life situation of an existing transnational firm contemplating to enter a new market in a developing country. It involves a gamut of issues ranging from firm-strategic market entry, competitive positioning, international marketing strategies (including international market segmentation) and international product lifecycle. These issues revolve on numerous theories namely theories on internationalization (motive, scope, process, scale and timing of entry) and globalization of markets (standardization versus adaptation). In the past, the market was heavily regulated and protected which makes market entry simply impossible. However, a change in government policy is opening up new opportunities for foreign providers to participate in the host country. Although the market potential is enormous, there are various factors that concern the firm in determining its market entry and marketing mix decision.

Expected learning outcomes

After carrying out this exercise, students are expected to be able to: evaluate a firm's internal and external position in market expansion decision; assess a country's attractiveness in terms of its potential, competitive intensity and entry barriers; identify and discuss the factors that influence firm's marketing mix decision (standardize/adapt); and determine the firm market entry and the tactical decisions.

Supplementary materials

Teaching notes.

Citation

Abu Bakar, A.R. and Hashim, F. (2011), "What's cooking? Indonesia's kerosene to LPG conversion program", , Vol. 1 No. 1. https://doi.org/10.1108/20450621111110447