This research aims to purpose the division strategy for a pharmaceutical producer in Kalimantan area, named Dexa Medica Samarinda. Currently, this firm is facing a competitive market condition and evolving a decline position in the market. This research uses qualitative research method by organising intensive interview to important informants so that this research provides valid confirmations. Analyses of external factors are originated from macro and industry environment analysis. Internal factors are conducted from functional aspects in the organisation, then encounter them in the strengths, weaknesses, opportunities, and threats (SWOT) matrix. The proper business strategy formulation in order to face the competition is based on a matrix of external factor evaluation (EFE) and internal factor evaluation (IFE) that on Cell 1, which the Dexa Medica Samarinda as the company grow and build (growth and build). In this position, it is advisable to use a Dexa Medica concentration through vertical integration which is the main strategy improve the downstream quality and distribution system.