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 Economics2. Case studies of exemplary

companies3. Business and Industry History4. Economic and Organizational

Sociology5. Strategic planning tools6. 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

Value drivers

Cost drivers

Retain Costu-mers

Prevent

Immita-tion

Resources

Capabilities

Competitive

Advantage

Superior Economic

Contribution

Sustainable Market Position

Membangun Competitive Advantage

Competitive Positioning w/ Customers

Defending Agains tCompetitors

Isolating Mechanisms

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 strategy1. 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 strategy4. 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

Economic ContributionProduced by the supplier

Buyer’s Surplus

Supplier’s Profit

Customer Value

Market Price

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

Higher Value

Value D

Value SIM

Value LC

D

SIM

LC

Lower Cost

COST D COST SIM COST LC

Trade-off between Differentiation and Low-cost Generic Strategies

Stuck In the Middle

Differentiatior

Lower Cost

$ Premium FirmValue Schwab

Cost

Typical Competitor’sEconomiccomtribution

Low-priceFirm

Schwab’s Economiccomtribution

Value

CostCost

The Internet Brokerage Industry

Value and Cost DriversValue Drivers Cost Drivers

Quality Scale economies

Delivery Scope economies

Service Learning curve

Technology Low input costs

Breadth of line Vertical integration

Customization

Geography

Risk Assumption

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 firm’s profit.

Isolating Mechanisms

Increasing Customer Retention

Preventing Imitation

Search costs Property rightsTransition costs Dedicated AssetsLearning costs Causal Ambiguity

Learning costs

Industry Analysis

How industry structure determines a firm’s economic performance. Industry forces can lower performance, as Michael Porter has argued. Porter’s five forces are buyers, suppliers, competitors, the threat of entry and substitute products.

Each influences performance by affecting a product’s value and price, or the firm’s costs. A sixth force is complementary products (ex: operating systems for computers)

Competitors

Porter’s Five Forces Framework

Buyers Suppliers

Substitutes

Entrants

Competitors

The Value Net

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 buyer’s 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

Stronger Buyers

Raise the valueRequired toCompete inindustry

Lower the price required to compete in industry

StrongerSuppliers

Lower the value to firms in the industry

Lower EntryCosts

Lower the price to keep entrants out of industry

More PowerfulSubstitutes

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

Lowers firm costs without comparable drop in buyer value

Between Firm and Suppliers

Raises the value to buyers without comparable rise in supplier costs

Lowers firm costs without comparable drop in firm value

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

Capacity Expansion

Product or Process

Innovation

Improved Market Position Due to Higher value or

lower cost

Improved Profitability

Key conceps in developing and maintaining dynamic capability

Concept Definition

Dynamic Growth Cycle

The cycle of firm growth linking size, innovation, productivity, profitability, and capacity expansion.

Dynamic Capability

The ability of a firm, as it grows, to build its innovative potential and exploit it effectively

Path Dependence

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

Absorptive Capacity

The ability of the firm to adopt innovations developed by other organizations based on its prior experience with similar or related practices or technologies

Core Rigidity The inability of a firm to adapt to changing market or technological conditions because of its attachment to its core practices and customers

Customer segmentation over the product life cycle

Industry Volume

Early majority Late Majority

Laggards

Early Adopters

Time

Rates of product and process innovation over the history of the industry

Rate ofInnovation

Process Innovation

Product Innovation

1 2 3 time