Case Analysis – Mustika Ratu
What are MR’s core competencies?
MR is so diversified that it would be nearly impossible for other company’s to imitate them. MR is so unique in several aspects of their organization. The company is has areas of business that includes fabrication, trade and distribution of herbs, cosmetics and healthy drink as well as several other related activities. An important core competency is the products produced by MR. Many of MR’s products are created using herbs that can only be found in Indonesia. MR also markets to Asian women in a way that I don’t think any other company could. MR has history and quality products as large success factors.
Is the economic crisis a serious threat to MR and its competitive advantage?
The economic crisis is not a serious threat to MR because they would not be the only company affected. MR’s competitors would be in the same exact position as MR or possibly worse off so they wouldn’t be gaining on MR’s competitive advantage. The main competitor mentioned in the case was AVON and while AVON could still be successful in other markets they would be in the same situation as MR. MR will continue to have a competitive advantage as long as they maintain a presence through the crisis and keep to strategy. Overall, MR should maintain and continue to be a leading manufacturer of women’s cosmetics and herbal supplements.
What should MR do?
Initially the economic crisis will probably have the company start looking for ways to diverge from Indonesia but opportunities can arise from the crisis, including international expansion tactics, better positioning of recent products or introducing new product lines, achieving goals, or spending money on new ideas in times when inputs can be acquired at a lower cost. MR should try to downsize a certain percentage in order to get through the plastic crisis. MR should keep a presence in Indonesia and remain...