MODERN COMPETITIVE STRATEGY

Dr. I. Iskandar

Efektifitas Strategi
Mengapa ada perusahaan yang sangat lama

menguasai pasar dan tidak tergoyahkan? Perusahaan tersebut bisa unggul dalam ukuran, produk, jaringan, lokasi, organisasi, hingga sejarahnya. Hal ini menjadikan perbedaan yang sangat jelas diantara pesaing-pesaingnya.

3 keuntungan memilih strategi yang tepat

1. Sumber dari perolehan ekonomis. Strategi

yang tepat menghubungkan posisi pasar dengan kemampuan perusahaan. Hal ini dikarenakan nilai yang didapatkan pelanggan dapat lebih terasa dibandingkan dengan pesaing.

3 keuntungan memilih strategi yang tepat

2. Strategi menyediakan kerangka kerja untuk

alokasi sumberdaya. Jika mempunyai sumberdaya terbatas, organisasi akan didorong untuk membuat keputusan untuk alternatif ber-investasi. Hal ini akan berdampak kepada cara perusahaan berkompetisi dengan pesaingnya.

3 keuntungan memilih strategi yang tepat

3. Pemikiran yang strategis akan bisa

mengarahkan perusahaan. Strategi perusahaan yang mudah dimengerti, akan memudahkan pengambilan keputusan di berbagai level manajemen. Hal ini akan berguna ketika perusahaan dalam kondisi yang tidak menentu dan ketika terjadinya konflik manajemen.

Awal dari strategi

Ruang lingkup strategi berasal dari 6 sumber utama, yaitu: 1. Industrial Economics 2. Case studies of exemplary companies 3. Business and Industry History 4. Economic and Organizational Sociology 5. Strategic planning tools 6. Institutional economics

Competitive Advantage
Ada dua aspek yang sangat fundamental dalam ruang lingkup strategi, yaitu: positioning product line & defending this position against competitors Competitive Advantage adalah Goal dari pemikiran strategis dan fokus utama berhasilnya suatu keputusan

Membangun Competitive Advantage

Competitive Positioning w/ Customers Defending Agains t Competitors Isolating Mechanisms Value drivers Cost drivers Resources Capabilities Retain Costumers Prevent Immitation

Superior Economic Contribution

Sustainable Market Position

Competitive Advantage

Apa yang dimaksud dengan competitive advantage?

Is the goal of strategic thinking and the

primary focus of successful entrepreneurial action. To achieve the goal of competitive advantage, a firm must offer value to customers at a cost that produces economic performance superior to rivals. The firm must then defend this position from the competition.

The contribution of economic and organizational sociology to strategy

1. Analyses of industry trends, especially rates

of firm failure, have shown the importance of firm size, more than age, for survival 2. The internal structures and processes of firms have been analyzed for their relative efficiency and potential for generating innovations 3. The development of networks of organizations has been analyzed as a strategic resource

The contribution of economic and organizational sociology to strategy

4. Advantages associated with geographical

location have been identified 5. Trends in corporate governance, including top management compensation and practices of boards of directors have been examined systematically

The distribution economic contribution between Buyer and Supplier

Customer Value Buyers Surplus

Economic Contribution Produced by the supplier

Market Price Suppliers Profit Product Cost

Strategi Umum
A successful firm must have one of two generic

strategies, which reflect its value and cost profile. A firm should be either a differentiator or the cost leader. A differentiator invests in offering high value, and the cost leader has the lowest costs. These strategies can be applied to a broadly defined market or to a market niche. In the case of a niche, the strategy is called focus. If a firm is neither a differentiator nor the cost leader it is called stuck in the middle SIM

Trade-off between Differentiation and Low-cost Generic Strategies

Higher Value Differentiatior Value D D

Stuck In the Middle Value SIM Value LC Lower Cost COST D COST SIM COST LC SIM Lower Cost LC

The Internet Brokerage Industry

$
Premium Firm Value Schwab Low-price Firm

Typical Competitors Economic comtribution Cost

Value
Schwabs Economic comtribution

Cost
Cost

Value and Cost Drivers

Value Drivers Quality Delivery Service Technology Breadth of line Customization Geography Risk Assumption Cost Drivers Scale economies Scope economies Learning curve Low input costs Vertical integration

Brand/ Reputation
Network Externalities Environmental policies Complementary products

Defending against competitors

A successful firm must defend its superior

market position from attack by competitors. The central means of protecting a superior position are the prevention of imitation and the creation of high customer switching costs.

Defending against competitors

The factors that reduce imitation and increase switching costs are called isolating mechanism.

To defend its market position, the firm aligns these mechanisms with its value and cost drivers, and with its resources and capabilities that produce these drivers. Without these mechanisms, competitive forces would quickly eat up the firms profit.

Isolating Mechanisms
Increasing Customer Retention Search costs Transition costs Learning costs Preventing Imitation
Property rights Dedicated Assets Causal Ambiguity Learning costs

Industry Analysis
How industry structure determines a firms

economic performance. Industry forces can lower performance, as Michael Porter has argued. Porters five forces are buyers, suppliers, competitors, the threat of entry and substitute products. Each influences performance by affecting a products value and price, or the firms costs. A sixth force is complementary products (ex: operating systems for computers)

Porters Five Forces Framework

Entrants

Buyers Competitors

Suppliers

Substitutes

The Value Net

Competitors Buyers Suppliers

Complements

Characteristic of Rivalry
Many competitors A common set of buyers for all firms The same value offered by all firms The same cost structure in all firms Relatively costless entry Relatively costless exit

Six factors determine the degree of buyer power

Buyer concentration Low market growth Low strategic importance of the product to

the buyer High strategic stakes in selling to the buyer The need of suppliers to fill capacity through selling to the buyer The buyers credible threat of vertical integration

Supplier power
Supplier concentration Supplier industry growth rate Percentage volume sold to the firm Strategic importance of the supplier to the

firm Strategic importance of the firm to the supplier Threat of backward integration by the firm

Effect on: Industry Competition Industry Force Value Cost Price

Stronger Rivalry

Lowers the price required to compete in industry

Raise the value Required to Compete in industry Lower the value to firms in the industry Lower the price to keep entrants out of industry Lower the price required to compete in industry

Stronger Buyers

Stronger Suppliers Lower Entry Costs

More Powerful Substitutes

Raise the value required to compete in industry

Effect on: Industry Cooperation Industry Force Value Cost Price

Between Firm and Buyers

Raises the value to buyers without comparable rise in firm costs

Raises the value to buyers without comparable rise in supplier costs

Lowers firm costs without comparable drop in buyer value

Lowers firm costs without comparable drop in firm value

Between Firm and Suppliers

Between firm and competitiors

Raises the value to industry buyers without comparable rise in industry costs (shared innovation)

Lowers the costs in industry without comparable drop in value to industry buyers (shared innovation)

Raises the potential price necessary to compete (cooperative pricing)

Effect on: Complements Industry Force Value Cost Price

Presence of effective complements

Raises the value to industry buyers without comparable rise in industry costs

Three Major Stages of Industry Evolution

Stage one Growth: new product

commercialization and industry expansion as the entry rate exceeds the exit rate Stage two Shakeout: a shakeout when the rate of entry drops and the rate of exit rises, decreasing the number of firms in the industry Stage three Maturity: industry stabilization as entry and exit rates converge

Stage one - Growth

Dynamic Capabilities and the growth of the

firm Developing scalable Value and Cost Drivers First mover advantage Strategic pricing

Dynamic Growth Cycle

Firm Size

Product or Process Innovation

Improved Market Position Due to Higher value or lower cost

Capacity Expansion

Improved Profitability

Key conceps in developing and maintaining dynamic capability

Concept Definition

Dynamic Growth Cycle

Dynamic Capability Path Dependence

The cycle of firm growth linking size, innovation, productivity, profitability, and capacity expansion.
The ability of a firm, as it grows, to build its innovative potential and exploit it effectively The tendency of a firm over time to invest in innovations that are upwardly compatible with each other, thereby creating a relatively unique path of product and process development The ability of the firm to adopt innovations developed by other organizations based on its prior experience with similar or related practices or technologies The inability of a firm to adapt to changing market or technological conditions because of its attachment to its core practices and customers

Absorptive Capacity Core Rigidity

Customer segmentation over the product life cycle

Industry Volume Early Adopters Laggards Early majority Late Majority

Time

Rates of product and process innovation over the history of the industry
Product Innovation Rate of Innovation

Process Innovation

time