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Corporate Strategy for Emerging Defense Industry: The Case of PT Pindad’s Market Entry into The Middle East Petherus, Valentino; Kristiyono, Hasto
Jurnal Samudra Ekonomi dan Bisnis Vol 17 No 1 (2026): JSEB
Publisher : Fakultas Ekonomi dan Bisnis Universitas Samudra

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33059/jseb.v17i1.11937

Abstract

This research aims to formulate an effective corporate strategy for PT Pindad to penetrate the Middle East defense market. Using the AFI (Analyze–Formulate–Implement) framework as a foundation, the study applies PESTEL, Porter’s five forces, VRIO, and SWOT analyses to comprehensively evaluate the current conditions. Data collection was conducted through in-depth interviews with key stakeholders. Findings indicate that the Middle East presents an extremely potential market but with a highly competitive landscape. Based on the Ansoff matrix, this research proposes a stage-based corporate strategy, beginning with market development, leveraging PT Pindad’s existing product portfolio and diplomatic networks for short-term market access and transitioning toward Diversification through co-development of advanced defense technologies with regional partners. This two-phase strategy offers a balance between risk mitigation and long-term competitive advantage.