There are times when a company has to grow; this may comes as a result
of many occurrences, such as growing competitors, to boost income, necessity to
give selections to customers, etc. If a business is stagnant when a competitor
grows, soon the business will lose its customers to its competitor, which may offer
more varieties, or made cheaper product. So, a business has to grow, simply due
to the nature of the competitive environment that will not let it survive without
emerging. Based on those fact, Marga Agung plan to do expansion to furniture
industry through its product development. This study intends to explore the
expansion to furniture industry in the case of Marga Agung and evaluate it
through two main research questions: (1) Should Marga Agung do the expansion
to furniture industry (2) What strategy does Marga Agung use to enter this new
market.
The thesis is based on using interview and related literature. In order to
answer the research question, the authors use data analysis method such as (1)
Payback Period analysis (2) Break Even Point analysis (3) Net Present Value
analysis.
The thesis concludes with results and findings of the analysis performed by
the authors, which are: (1) Marga Agung should do the expansion to furniture
industry (2) Marga Agung will use many marketing and promotional approach to
enter furniture market.