CHAPTERIV DATAANALYSIS 4.1CurrentBusinessStage PTCrownTeknologiIndonesia(CTI),foundedin2022inPadang,SumateraBarat,is presentlyinanexpansionandcommercializationphase.Startingproductionin2023,CTI specializesincreatingadvancedinvitrodiagnostictools,includingNucleicAcid AmplificationTests(NAAT)andRapidDiagnosticTests(RDT).Thecompanyoperates underthebrandname"CRown_Lab,"emphasizinghigh-quality,cost-effectivehealthcare solutions. CTIhasestablishedstrategiccollaborationswithrenowneduniversitiesandresearch institutionstoacceleratethedevelopmentandcommerciallaunchofitsproducts.These partnershipsenableCTItostayattheforefrontofbiotechnologicalinnovationsandensure thehigheststandardsinproductdevelopment. Thecompany'sprimarymissionistosupporttheIndonesiangovernment'shealthinitiatives bysupplyingessentialmedicaldevicesandlaboratorymaterials,fosteringlocal manufacturingcapabilities,andreducingdependencyonimportedhealthcareproducts.CTI's portfolioincludesdiagnostickitsfordetectingvariouspathogens,suchasMycobacterium tuberculosis,Mycobacteriumleprae,Salmonellatyphi,Helicobacterpylori,andhigh-risk HumanPapillomavirus(HPV)types. CTI'svisionistobecomealeadingbiotechnologycompanyinIndonesia,committedto improvingpublichealththroughinnovativeandaccessiblediagnosticsolutions.The companyinvestsheavilyinresearchanddevelopmenttocontinuouslyimproveitsproduct offeringsandsupportthehealthcaresectorwithreliableandaccuratediagnostictools.This phaseofgrowthismarkedbysignificanteffortsinproductdiversification,regulatory compliance,andmarketpenetration,reflectingCTI'sdedicationtoenhancinghealthcare qualityandaccessibilityinIndonesiaandbeyond 4.2ProjectOverview Inresponsetotherapidlyexpandingglobalandregionalmedicaldevicemarkets,CTIis embarkingonanewprojecttoestablishadedicatedproductionfacilityformedicalgloves. Thisnewbranchisscheduledtocommenceoperationsinearly2028,markingasignificant 19 milestoneinCTI'sgrowthtrajectoryandreflectingmarketconfidence.Thisinitiative capitalizesontherapidlygrowingdemandformedicalglovesinIndonesiaandthe Asia-Pacificregion,drivenbyincreasedawarenessofinfectioncontrol,risinghealthcare needs,andanexpandinggeriatricpopulation. TheAsia-PacificglovesmarketisprojectedtogrowataCAGRof11.1%from2022to2029, reachingUSD9,817.60million,whileIndonesia'smarketisexpectedtogrowfromUSD 40.951millionin2022toUSD70.100millionby2029ataCAGRof7.98%.Thenew facilitywillproducearangeofmedicalgloves,includingsurgicalglovesmadefrom advancedmaterialslikenitriletoensuringdurabilityandhightactilesensitivitytomeet internationalstandards.ThisprojectalignswiththeIndonesiangovernment'sTKDN(Tingkat KomponenDalamNegeri)policy,whichmandatesaminimumpercentageoflocalcontentin medicaldevices,offeringCTIaccesstogovernmentincentivesandpublichealthcare contracts.AninitialinvestmentofIDR117billionwillbeallocateforthisproject,covering facilitysetup,state-of-the-artequipmentacquisition,andotheressentialactivities.Withthis expansion,CTIaimstoreduceIndonesia'srelianceonimportedmedicalgloves,enhance localproductioncapabilities,andpositionitselfasaleadingplayerinthemedicaldevice industry,advancinghealthcaresolutionsandinnovation. Theproductionprocessforthenewmedicalglovesfacilitywillinvolveseveralcriticalsteps toensurehigh-qualityoutputandcompliancewithinternationalstandards.Theproduction process,asoutlinedintheflowchart,involvesstepsfromsyntheticrubberpreparationto packagingandshipping,withoptionalprocesseslikepolymercoatingandchlorinationlike showedbelow: viii Figure4.1ProductionProcess 4.3MarketAnalysis 4.3.1MarketingMixAnalysis BelowisadetailedoverviewoftheproductthatwillbemanufacturedbyPT.Crown TeknologiIndonesia,includingitspricing,distribution,andpromotionalstrategiesbasedon the4P'smarketingmixframework: 21 Table4.14P’sMarketingMixAnalysis Product Price (Competitive basedpricing) Place Promotion Medicalglove (Nitrile) Rp100,000 (e-katalog) 1.Offlinetransaction 2.Onlinetransaction throughe-commerce and e-katalog (governmentwebsite) 3.Retailordistribution partnership. 1.Traditionalmarketing suchasdirectsales thoughthecustomer andconsumer. 2.Strategicpartnership 3.Social media promotion. 4.3.2TAMSAMSOMAnalysis ToanalyzethemarketopportunitiesforPT.CrownTeknologiIndonesia(CTI)inthemedical devicessector,theframeworkusestheTotalAddressableMarket(TAM),Serviceable AvailableMarket(SAM),andServiceableObtainableMarket(SOM)framework. Table4.2TAMSAMSOMAnalysis ParameterDescription Data Source TAM TheentirerevenueopportunityavailableifCTI captures100%oftheIndonesianmedicaldevices market. $3.6billion Or Statista(2021) SAM Focusesspecificallyonthemedicalglovessegment withintheIndonesianmedicaldevicesmarket.This includesglovesusedinsurgicalproceduresandother medicalsettingstopreventinfectionand contamination. $40.951million DataBridge MarketResearch andothermarket researchreports (2022) Totalcapacity6rubbergloveindustrycompaniesin Indonesia 13,240,000,000pcs BiztekaJournal (2021) SOM TherealisticportionoftheSAMthatCTIcan capture,consideringfactorslikecompetition, productioncapacity,marketreach,andregulatory compliance.Itincludesboththedomesticmarketfor medicalglovesandpotentialexports. CTItargets0.8%oftheindustry capacityfortheinitialyearand increasesasthecapacityincreases. viii Thetablebelowpresentsa10-yearfinancialprojectionfortheServiceableObtainableMarket (SOM)target.Itbreaksdownthetarget,showingthepercentageincreaseattributedto plannedcapacityexpansion.Additionally,thetabledisplaystheproductiondistribution percentageforeachproductinthecompany'sportfolio. Table4.3SOMCalculation YearTargetCapacity(Yearly)PercentageofSAMTotalNitrileGlovesProduction 1 109,500,000 0.80% 105,920,000 2 120,450,000 0.88% 116,512,000 3 132,495,000 0.97% 128,163,200 4 145,744,500 1.06% 140,979,520 5 160,318,950 1.17% 155,077,472 6 176,350,845 1.29% 170,585,219 7 193,985,930 1.42% 187,643,741 8 213,384,522 1.56% 206,408,115 9 234,722,975 1.71% 227,048,927 10 258,195,272 1.89% 249,753,819 ByanalyzingTAM,SAM,andSOM,itisevidentthatPT.CrownTeknologiIndonesia(CTI) hassignificantgrowthopportunitiesintheIndonesianmedicaldevicesmarket,particularlyin themedicalglovessector.Thecompany'sexpansionplans,compliancewithgovernment policies,andfocusonhigh-qualitystandardspositionCTItocapitalizeonthegrowing demandformedicaldevicesinIndonesia.Asthecountryseekstoenhanceitshealthcare infrastructureandreducerelianceonimports,CTI'sstrategicinitiativesandmarket positioningwillplayacrucialroleinadvancinghealthcaresolutions. 4.4BusinessModelCanvas TheBusinessModelCanvas(BMC)forPT.CrownTeknologiIndonesia's(CTI)medical glovesproductionprojectprovidesastructuredoverviewofthekeyelementsnecessaryfor thebusinesstosucceed.Here'stheBMCbreakdown: 23 Figure4.2BusinessModelCanvasAnalysis ThisBusinessModelCanvasoutlinesthestrategicapproachCTIwilltakeinestablishingand growingitsmedicalglovesproductionbusiness,focusingonhigh-qualityproducts, compliancewithlocalregulations,andstrongcustomerrelationships. 4.5ExternalAnalysis 4.5.1Theporter’sFiveForcesAnalysis TheaimofapplyingPorter’sFiveForcesanalysistoPT.CrownTeknologiIndonesia’s(CTI) newmedicalglovesprojectistoassessthecompetitivedynamicsandmarketattractiveness ofthemedicalglovessector.ThisanalysishelpsCTIunderstandcompetitivepressures, identifypotentialrisksandopportunities,anddevelopastrategyforsuccessfulmarketentry andgrowth. Table4.4Porter’sFiveForcesAnalysis Force Factors Analysis ForceLevel Threatof New Entrants CapitalRequirements:Significantinvestmentisneededfor establishingamanufacturingfacility,sourcinghigh-qualityraw materials,andacquiringadvancedproductiontechnology. Lowto Moderate viii EconomiesofScale:Establishedplayerscanproduceatalower costduetoeconomiesofscale,makingitharderfornewentrants tocompete. RegulatoryCompliance:Strictregulationsandtheneedtomeet internationalqualitystandardsandthelocalTKDNpolicycan deternewentrants. BrandandReputation:Existingfirmswithestablishedbrands haveacompetitiveedge.Buildingtrustinmedicalproducts, especiallyinthepost-pandemicera,iscrucial. BarrierstoEntry:ModeratetoHigh Overall,whiletherearesubstantialbarriers,thegrowingdemand andgovernmentincentivesforlocalproduction(TKDNpolicy) couldlowerthesebarrierssomewhat. Bargaining Powerof Supplier ConcentrationofSuppliers:Themarketforrawmaterials(like latex,nitrile)andmanufacturingequipmentismoderately concentrated,givingsupplierssomebargainingpower. SwitchingCosts:High-qualitystandardsandregulatory requirementsmeanthatswitchingsupplierscanbecostlyand time-consuming,givingmorepowertoexistingsuppliers. AvailabilityofSubstitutes:Whiletherearemultiplematerials availableforgloves,thespecificpropertiesrequiredformedical applications(durability,sensitivity)limittheoptions. Overall,suppliershavemoderatebargainingpower,whichcan influencecostsandterms,especiallyiftheycontrolhigh-quality orspecializedrawmaterials. Moderateto high Bargaining Powerof Buyers BuyerConcentration:Majorbuyers,suchashospitals, governmenthealthcareagencies,andlargehealthcareproviders, oftenhavesignificantnegotiatingpowerduetobulkpurchasing. PriceSensitivity:Thehealthcaresector,includinggovernment procurement,ishighlyprice-sensitive,especiallyincost-sensitive marketslikeIndonesia. AvailabilityofAlternatives:Themarketoffersarangeof suppliersformedicalgloves,whichincreasescompetitionand Moderate 25 givesbuyersmoreleverage. Overall,buyershavemoderatebargainingpowerduetothe availabilityofalternativesandtheimportanceofpriceandquality inprocurementdecisions. Threatof Substitute Product AvailabilityofSubstitutes:Alternativestodisposablegloves (likereusableglovesordifferenttypesofPPE)existbutareless convenientandmaynotmeetthestringenthygieneandsafety standardsrequiredinmedicalsettings. CostandPerformanceofSubstitutes:Disposableglovesarea standardintheindustryduetotheirconvenience,safety,and cost-effectiveness.Substitutesmaynotofferthesamebalanceof thesefactors. Overall,thethreatofsubstitutesislowtomoderate,asdisposable medicalglovesareessentialinmaintaininginfectioncontrolin healthcaresettings. Lowto Moderate Rivalry among Existing Competitor NumberofCompetitors:Themarketformedicalglovesis competitive,withbothlocalandinternationalplayers. ProductDifferentiation:Whilethereisroomfordifferentiation intermsofmaterialandquality,productsaregenerallysimilar, increasingcompetition. IndustryGrowthRate:Themarketisgrowing,particularlyin responsetoheightenedhygieneawarenesspost-COVID-19, whichencouragesmoreentrantsandintensifiescompetition. Overall,rivalryamongcompetitorsishigh,drivenbymarket growth,thesimilarityofproducts,andthepresenceofestablished brands. High BelowistheradarchartrepresentsananalysisbasedonPorter'sFiveForcesframework, whichhelpsunderstandthecompetitiveenvironmentofanindustry.Eachaxisoftheradar chartcorrespondstooneofthefiveforces: viii Figure4.3RadarChartPorter5Forces Insummary,Byaddressingthesekeyareas,CTIcanstrategicallypositionitselfinthe competitivelandscapeandleveragegrowthopportunitiesinthemedicalglovesmarket. 4.5.2PESTELAnalysis Table4.5PESTLEAnalysis Factors Analysis Impact Politics GovernmentPolicies(TKDNRegulation):TheIndonesian government’sTKDNpolicyrequireslocalsourcingofmedical products,includinggloves,whichpositivelyimpactsCTIby ensuringlocalmarketaccessandprotectionfromimport competition.Thisregulationalsopromoteslocalmanufacturingand canprovidegovernmentincentives. Positive EconomicEconomicGrowth:Agrowingeconomycanleadtoincreased disposableincomeandhigherhealthcarespending.Inthefirst quarterof2024,QuotingdatafromBPS–StatisticsIndonesia, Indonesia'seconomygrewby5.11%year-on-year,drivenbystrong Positive 27 domesticdemandandstatebudgetsupport.Thisgrowthhas positivelyimpactingemploymentratesandlivingstandards.So that,itwillbeimpactedtothepeopleaccesstothehealthservices. ExchangeRates:Fluctuationsinexchangeratescanimpactthe costofimportedrawmaterialsandexportedproducts.AsofJuly1, 2024,therupiahtodollarexchangerateisatIDR16,390. Figure4.4ExchangeRateUSDtoIDR Negative MarketGrowth:ThemedicalglovesmarketinIndonesiais growing,withaprojectedCAGRof7.98%.Thisprovidesa positiveimpactbycreatingsignificantrevenueopportunitiesfor CTI.TheoveralleconomicconditionsinIndonesiaarealso favorableforinvestment,butfluctuationsineconomicstabilityor inflationcouldposeriskstocoststructuresandprofitability. Positive InflationRates:AccordingtoStatista,theannualinflationrateof thehealthcaresectorinIndonesiais2.79%.Highinflationratescan increasethecostofrawmaterialsandproduction,impactingpricing strategies.It'simportanttomonitorinflationtomaintain profitability. Negative viii Figure4.5AnnualInflationRate(Source:Statista) Social PopulationGrowthandAgingPopulation:Theglobal populationisprojectedtoincreasefrom8billionto9.7billionby 2050,withtheagingpopulationrisingfrom761millionin2021to 1.6billionby2050.Thisdemographicshiftdrivesincreased demandformedicaldevices,includinggloves,duetogrowing healthcareneeds.InIndonesia,thepopulationreached278.7 millioninearly2024,withanotableelderlydemographic comprising11.75%ofthetotal(BPS,2023).Thesetrends positivelyimpactCTIbyexpandingmarketopportunitiesand increasinglocaldemand.However,theyalsoposelogisticaland supplychainchallengesduetothegreaterdemandonhealthcare infrastructure. Positive IncreasedHealthAwareness:Post-pandemic,thereisheightened awarenessofhygieneandinfectioncontrol,whichdrivesdemand formedicalgloves.ThistrendhasapositiveimpactonCTI, boostingpotentialsales. Positive TechnologyAutomationandAI:AdvancesinautomationandAIinIndustry 4.0improveproductionefficiency,reducecosts,andenhance productqualityforCTI.Intelligentmanufacturingprocesses contributetohigherreliabilityandresourceefficiency.However, Positive 29 therapidpaceoftechnologicalchangemayrequirecontinuous investmentinnewtechnologies. Legal MedicalDeviceRegulations: CompliancewithstringentmedicaldeviceregulationsinIndonesia, suchashalalcertification,ISO13485:2016-MedicalDevices QualityManagementSystems,ISO9001:2015-Quality ManagementSystems,FDA21CFRPart820-QualitySystem Regulation,andcomprehensiveregistrationrequirements,ensures productqualityandmarketaccessbutmayalsoincrease operationalcomplexityandcosts. HealthandSafetyStandards:CurrentlythegovernmentEnsuring thatproductsmeethealthandsafetystandardsprotectsconsumers andreducestheriskofrecallsandlegalactions. Mixed EnvironmentSustainabilityPractices:Implementingsustainablemanufacturing practicesandcomplyingwithenvironmentalregulationshelp reduceCTI'scarbonfootprintandappealtoeco-conscious consumers.Lean-greenmanufacturingtechniquesimprove sustainabilityandcustomersatisfaction,whileeffectivewaste managementstrategiesensurecompliancewithenvironmental regulationsandminimizeenvironmentalimpact.