PORTER’S FIVE FORCES ANALYSIS OF PT INDOFOOD CBP SUKSES MAKMUR TBK

Abstract

The food and beverage industry is an important sector of Indonesia’s manufacturing industry and faces competitive pressures from existing competitors, suppliers, buyers, substitute products, and potential new entrants. This study aims to analyze the competitive position of PT Indofood CBP Sukses Makmur Tbk (ICBP) using Porter’s Five Forces framework. The study employs a descriptive qualitative approach based on document analysis of secondary data, including company disclosures and financial statements, government and industry publications, consumer brand survey data, analyst reports, and previous academic research. The analysis focuses on the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and rivalry among existing competitors. The findings indicate that the threat of new entrants and bargaining power of suppliers are moderate, bargaining power of buyers is moderate to high, while the threat of substitute products and rivalry among existing competitors are high. ICBP’s competitive position is supported by its established brands, broad product portfolio, production facilities, and distribution capabilities. However, the company faces cost-related pressure, as its gross profit margin declined from approximately 37.0% in 2024 to 35.2% in 2025, mainly due to higher raw material costs, particularly cooking oil. Instant noodles also accounted for approximately 73% of the company’s 2025 net sales, indicating a significant concentration of revenue in this product category. These findings highlight the importance of cost management, product differentiation, innovation, and distribution effectiveness in maintaining ICBP’s competitive position.