Business Strategy Formulation Based on Internal-External Matrix in an Industrial Lubricant and Specialty Chemical Company in the Automotive Manufacturing Segment
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Abstract
This study aims to formulate a business strategy for an industrial lubricant and specialty chemical company serving the automotive manufacturing segment in Indonesia. The research addresses a gap in strategic management studies, where many studies discuss internal-external evaluation or portfolio analysis separately, while limited studies integrate external and internal diagnosis, strategic posture mapping, strategy prioritization, and implementation design in the context of a local B2B industrial supplier. This study applies a qualitative descriptive case study approach. Primary data were collected through semi-structured interviews with key informants, while secondary data were obtained from company documents, sales records, marketing funnel data, and industry sources. The main analytical flow includes external and internal factor evaluation through EFE and IFE matrices, strategic posture mapping using the Internal-External Matrix, strategy formulation through TOWS, strategy prioritization using QSPM, and implementation design using the Balanced Scorecard. The findings show an EFE score of 2.56 and an IFE score of 2.76, positioning the company in Cell V of the Internal-External Matrix, which indicates a hold and maintain posture. The priority strategy is strengthening after-sales services through monitoring, troubleshooting, customer training, and technical service standardization, supported by product improvement and solution-based account penetration.
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