Business Development Strategy for Mineral Trading (Case Study of Prima Multi Mineral Ltd. Co.)

Global changes related to economic and geopolitical factors have influenced business sustainability. The pressure of ESG factors also impacts business strategies. PMM, a coal trading company, is exploring a new business venture in mineral trading. PMM needs to formulate a strategy for developing its mineral trading business. The purpose is to analyze external and internal factors that influence the business development strategy of mineral trading, formulate strategic alternatives, and determine the appropriate business strategy priorities. Industry foresight is used to assess the future business environment for gold and nickel mineral trading. For the macro and external environment, PESTEL and Porter’s 5 Forces are used, while internal analysis uses the VRIO framework. Strategic alternatives are formulated through SWOT, and strategy prioritization is determined using a hybrid AHP-SWOT (A’WOT). The results show that gold and nickel are in increasing demand, making them viable for PMM to enter the mineral trading business. Strength factors rank highest. The most influential internal factor is the efficiency of the international joint venture company based in Singapore, which serves as a key strength for entering the new business. Meanwhile, AP/AR management is the main weakness. The most influential external factors are the low threat from new entrants, which are considered opportunities. On the other hand, low buyer differentiation is considered a threat. The strategic alternatives for PMM’s mineral trading business development include optimizing the Singapore-based joint venture subsidiary as a center for international development and trade, mastering mineral trading competencies, and enhancing operations with technology implementation. Keywords: business strategy, mineral trading, EFE, IFE, SWOT, AHP