Dealing with CompetitionDealing with Competition

Gancar Candra PremanantoGancar Candra Premananto

What makes this part important?What makes this part important?

Marketing’s analogy

Five Forces Determining Segment Five Forces Determining Segment Structural Attractiveness (Porter 1985)Structural Attractiveness (Porter 1985)

Threat of Mobility

Segment Rivalry

(This is our main topics)

Threat of Substitutes

Buyer Power

Supplier Power

SPECT

The 3C's Model is a strategical look at the factors The 3C's Model is a strategical look at the factors needed for success. It was developed by Kenichi needed for success. It was developed by Kenichi Ohmae, a business and corporate strategist.Ohmae, a business and corporate strategist.

The 3C’s model points out that a strategist should The 3C’s model points out that a strategist should focus on three key factors for success. In the focus on three key factors for success. In the construction of a business strategy, three main construction of a business strategy, three main players must be taken into account:players must be taken into account:

A. The CorporationA. The CorporationB. The CustomerB. The CustomerC. The CompetitorsC. The Competitors

Only by integrating these three C’s (Corporation, Only by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. sustained competitive advantage can exist. Ohmae refers to these key factors as the three Ohmae refers to these key factors as the three C’s or strategic triangle.C’s or strategic triangle.

DiscussDiscuss

Competitor Oriented vs Consumer Competitor Oriented vs Consumer Oriented (Competitor-centered Company Oriented (Competitor-centered Company vs Customer-centered Company)vs Customer-centered Company)

Marketing Strategy = Marketing Strategy = WAR StrategyWAR Strategy????

From Sun Tzu they learned the tactical side of From Sun Tzu they learned the tactical side of military strategy and specific tactical military strategy and specific tactical proscriptions. In regard to what business proscriptions. In regard to what business strategists call "strategists call "first-mover advantagefirst-mover advantage", Sun Tzu ", Sun Tzu said: "Generally, he who occupies the field of said: "Generally, he who occupies the field of battle first and awaits an enemy is at ease, he battle first and awaits an enemy is at ease, he who comes later to the scene and rushes into the who comes later to the scene and rushes into the fight is weary." fight is weary." From Von Clausewitz they learned the dynamic From Von Clausewitz they learned the dynamic and unpredictable nature of military strategy. and unpredictable nature of military strategy. Clausewitz felt that in a situation of chaos and Clausewitz felt that in a situation of chaos and confusion, strategy should be based on confusion, strategy should be based on flexible flexible principlesprinciples. Strategy comes not from formula or . Strategy comes not from formula or rules of engagement, but from adapting to what rules of engagement, but from adapting to what he called "friction" (minute by minute events). he called "friction" (minute by minute events). From Mao Zedong they learned the principles of From Mao Zedong they learned the principles of guerrilla warfareguerrilla warfare..

MARKETING STRATEGYMARKETING STRATEGY

Marketing strategy is a process that can allow Marketing strategy is a process that can allow an organization to concentrate its an organization to concentrate its limited limited resourcesresources on the on the greatest opportunitiesgreatest opportunities to to increase sales and achieve a sustainable increase sales and achieve a sustainable competitive advantage.competitive advantage. A marketing strategy should be centered A marketing strategy should be centered around the key concept that around the key concept that customer customer satisfactionsatisfaction is the main goal. is the main goal.

Marketing strategy determines the Marketing strategy determines the choice of choice of target market segments, target market segments, positioning, marketing mix, and positioning, marketing mix, and allocation of resourcesallocation of resources. It is most . It is most effective when it is an integral effective when it is an integral component of overall firm strategy, component of overall firm strategy, defining how the defining how the organizationorganization will will successfully engage successfully engage customerscustomers, , prospectsprospects, and , and competitorscompetitors in the in the market arena. market arena.

Kondisi Persaingan…Kondisi Persaingan…

Kondisi PersainganKondisi Persaingan

UKM

Perusahaan Bermodal

Besar

Persaingan…Persaingan…

Strategy to deal with Competitor

Identify Competitor

1. Are we in the same industry?

2. Are we in the same strategy?

3. What are they objectives?

4. Do we know their S & W?

Select Competitors

-Strong vs Weak,

- Close vs Distant,

- Good vs Bad

Set Competitive Strategies

Depend on it Position in the market

-Market Leader,

- Market Challenger,

- Market Follower,

- Market Nicher.

Market Leaders’ Strategies

Expanding Total Market

Attract New Customer

Persuade More Usage

Defending Market Share

Position Defense

Flank Defense

Preemptive Defense

Counteroffensive Defense

Mobile Defense

(via Mrkt Broadening & Diversification)

Contraction Defense

Expanding Market Share

Market Challenger Strategies

Choosing Target

Attack Market Leader

Attack similar Firms

Optional Strategy to

Attack

Frontal Attack

Flank Attack

Encirclement Attack

Bypass Attack

(special case; Technological leapfrogging)

Guerrilla Warfare

Attack Small Firms

Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

Market NicherMarket Nicher

Being the King in the Small VillageBeing the King in the Small Village

Specialized in one of end-user, Specialized in one of end-user, customer-size, specific-customer, customer-size, specific-customer, geographic, product, product feature, geographic, product, product feature, job-shop, quality-price, service, job-shop, quality-price, service, channel.channel.

Do we have to compete…?Do we have to compete…?