By : Darmadi D.

LOW INTENSITY COMPETITION

MODERATE COMPETITION

HIGH INTENSITYCOMPETITION

EXTREMECOMPETITION

HYPERCOMPETITION

COMPETITIONAVOIDANCE

NOCOMPETITION

PERFECTCOMPETITION

MONOPOLY

PERFECTCOMPETITION

SCHUMPETERIANCOMPETITION

(SEVERAL PLAYER)

PERFECTCOMPETITION

ABNORMAL PROFIT /

NO PROFIT /LOSS

INTERMITTENTOR

LOW PROFIT

SUSTAINABLEPROFIT

EXCESSIVEPROFIT

TYPES THE TREND

DIFFERENT LEVELS OF COMPETITION WITHIN AN INDUSTRY

CARA LAMA MELIHAT CA IALAH DALAM STATIC

VIEWS

4 KEY AREAS OF COMPETITION :

PRICE & QUALITY

TIMING & KNOW HOW

STRONGHOLDS

DEEP POCKETS

SIMPLES VIEW OF CA : FIRMS COMPETE ON EFFICIENCY (AFFECTING COSTS & REDUCING PRICE)

PROFITS ARE DERIVED FROM 2 SOURCES :

A. MINIMIZING COSTS OR INCREASING PRICE TO INCREASE MARGINS

B. INCREASING SALES VOLUME TO IMPROVE CAPACITY UTILIZATION & SPREAD F.C. OVER GREATER

VOLUME

P = COST LEADERSHIP

P QUALITY = PRODUCT DIFF

STATIC VIEW = FIRST ENTRY & TECHNOLOGY

DYNAMIC VIEW = PESAING MASUK DGN TECH YG

LEBIH MAJU

STATIC VIEW = MEMBATASI JUMLAH PESAING DALAM

DAERAH KEKUASAAN TERTENTU DGN

CREATE ENTRY BARRIER

HIGH

DYNAMIC VIEW = RUNTUH

STATIC VIEW : MENGGUNAKAN SUMBER DAYA YG LEBIH BANYAK

BANYAK PILIHAN MENJINAKKAN SMALL CO

DYNAMIC VIEW : KEUNGGULAN AKAN HILANG IF COMPETITORS

MEMBENTUK ALIANSI & MENGUMPULKAN RESOURCES

MELAWAN YG DEEP POCKETS

1. EVERY ADVANTAGE IS ERODED

LAUN

CH

EXPLOITATIONCOUNTERATTACK

PROFIT FROM SUSTAINED

COMPETITIVE ADVANTAGE

TIME (YEARS) 10

2. SUSTAINING ADVANTAGE CAN BE A DEADLY DISTRACTION

TRYING TO SUSTAIN AN EXISTING ADVANTAGE

= HARVEST STRATEGY VS GROWTH STRATEGY

HANYA MEMANFAATKAN ASSET

TIDAK MENCARI ASSET BARU

MEMBERIKAN OPPORTUNITY TO COMPETITOR UTK

MEMPERKUAT DIRI & MENDAPATKAN NEW

COMPETITIVE ADVANTAGE

3. THE GOAL IS DISRUPTION, NOT SUSTAINING ADVANTAGE

THE PRIMARY GOAL = DISRUPTION OF THE STATUS

QUO, TO SEIZE THE INITIATIVE THROUGH CREATING

A SERIES OF TEMPORARY ADVANTAGES

ONE STEP AHEAD OF THEIR COMPETITOR

FROM ONE TEMPORARY ADV TO NEXT TEMPORARY

ADVANTAGE

4. SEIZING THE INITIATIVE WITH A SERIES OF SMALL STEPS

AS COMPETITIVE CYCLES HAVE SHORTENED, THE NEED TO RAPIDLY DEVELOP NEW ADVANTAGE HAS INCREASED

TIDAK MUNGKIN MEMIKIRKAN STRATEGI UTK 5 ATAU 10 YEARS

PENTING SERENTETAN LANGKAH-LANGKAH PENDEK YG AKAN DIAMBIL BERURUTAN

5 10 15

ETC

FIRM HAS ALREADY MOVED ON TO ADVANTAGE NO.2

A SERIES OF SHORT LIVED ACTIONS ADD UP TO A SUSTAINED

ADVANTAGE

PROFIT FROM A

SERIES OF REPLICABLE ACTIONS

PANDANGAN DINAMIS

KEUNTUNGAN YANG DIPEROLEH BAIK LEWAT HARGA / MUTU

BERTAHAN LAMA PESAING MUNCUL DENGAN PRODUK LEBIH BERMUTU

OR HARGA LEBIH RENDAH

≠

1. DYNAMIC STRATEGIC INTERACTIONS

AKSI INTERAKSI

LANGKAH COUNTERMOVE

LAMA-LAMA TOUGH COMPETITION

2. STRATEGY IS RELATIVE

B2

A

B1IS POSITION A

THE LOW-COST PRODUCERS ?

DEPENDS ON COMPETITOR

TIDAK ADA YANG MUTLAKHIGH

LOW

LOW

HIGH

PR

ICE

PERCEIVED QUALITY“STRATEGIC RELATIVISM”

3.THE TREND IN THE 4 ARENA OF COMPETITION

TRAJECTORIES IN 4 ARENA

TIDAK HANYA RELATIF TERHADAP PESAING

TAPI JUGA DILIHAT DALAM KONTEKS SEJARAH INI INTERAKSI YG DILAKUKAN PARA PESAING

PESAING JUGA MAMPU MEMPROYEKSIKAN KECENDERUNGAN JK PANJANG UTK MEMAHAMI

ARAH PERSAINGAN

GOOD VS BAD

CLOSE VS DISTANT

STRONG VS WEAK

1. SUPERIOR STAKEHOLDER SATISFACTION

2. STRATEGIC SOOTHSAYING

* PROSES MENCARI PENGETAHUAN BARU UTK CREATE NEW

OPP 1 -2 = VISION SETTING

3. POSITIONING FOR SPEED

4. POSITONING FOR SURPRISE

5. SHIFTING THE RULES OF COMPETITION

6. SIGNALING STRATEGIC INTENT

7. SIMULTANEOUS & SEQUENTIAL STRATEGIC THRUSTS

TINDAKAN YANG SERENTAK & BERURUTAN

VISION FOR DISRUPTIONIdentifying & creating

opportunities for temporary advantage through

understanding

• Stakeholder satisfaction

• Strategic soothsaying

Directed at identifying new ways to serve existing

customers better or new customers that no one else

serves now

CAPABILITY FOR DISRUPTIONSustaining the momentum by

developing flexible capacities for :

• Speed

• Surprise

That can be applied across many actions to bulk a series of temporary

advantages

TACTICS FOR DISRUPTION

Seizing the initiative to gain advantage by

• Shifting the rules

• Signaling

• Simultaneous & sequential strategic thrusts

With actions that shape, mold, or influence the

direction or nature of the competitors’ responses

Market Disruption

DISRUPTING MARKETS & SEIZING THE

INITIATIVE

FIGURE 9 – 6

DYNAMIC 7-S ANALYSIS : SWATCH VS TIMEX

S-1 Stakeholder satisfaction

S-2 Strategic soothsaying

S-3 Speed

S-4 Surprise

S-5 Shifting the rules

Swatch redefined quality as a design variety, low cost, & excitement rather than Timex’s reliability.

Swatch seized the opp for increasing emphasis on fashion & defined fashion trends in the watch industry

Swatch process innovations allowed frequent new product changes

Swatch’s wide range of new products & constant creativity made the company extremely unpredictable, making it hard for competitors to keep up

Swatch shifted watch quality from timekeeping to fashion. It shifted distribution fro jewelers to department stores, where it went head-to-head with Timex & squeezed Timex out of some stores

S-6 Signaling

S-7 Simultaneous & sequential strategic thrusts

Swatch used product announcements & publicized shifts into new markets such as phone to emphasize its strategic intent & aggressiveness but to keep competitors guessing about its true intentions

Moving in several directions at once, Swatch-maker SMH has attacked through innovations at the high end (Omega) & low end at the same time. It has used a sequential strategy of building strength in watches & then applying its know-how & resources to other products – even automobiles. It ha also moved in so many different directions in its product line that it has been impossible for Timex to react or keep up

FIGURE 9 - 4

DYNAMIC 7-S ANALYSIS : seiko vs swiss watchmakers

S-1 Stakeholder satisfaction

S-2 Strategic soothsaying

S-3 Speed

Most Swiss watchmakers were convinced that customers wanted mechanical, handcrafted watches rather than highly accurate timepieces. Seiko & other quartz watchmakers understood that customers were more concerned about accurate time than internal works

Swiss watchmakers had the technology to move into quartz but not the vision to see that the future of watchmaking would be in quartz watches. But Seiko recognized quartz as the future of watchmaking & saw an opp to seize the initiative

The heavy investment & traditions of the Swiss made most of them slow to respond, even when it was clear quartz watches were a threat

S-4 Surprise

S-5 Shifting the rules

The innovativeness of Seiko & other quartz watch manufacturers caught the Swiss watchmakers by surprise. Also they didn’t expect their competition to come from Japan

The rules of competition shifted from handcraft, mechanical watchmaking to high-tech, mass-produced quartz watches

Seiko & other companies signaled their intent to move aggressively into the markets held by the Swiss

With the advent of quartz watches & nearly simultaneous introduction or digital watches, Swiss makers were hit by competition from 2 directions that may have further slowed their response

S-6 Signaling

S-7 Simultaneous & sequential strategic thrusts

TO SHIFT FOCUS TOWARD KNOWLEDGE & SKILLS RELEVANT TO :

1. Launching multiple unsustainable initiatives

2. Using them to “outmaneuver” the old competitive position of rivals by taking advantage of the dynamic & relativistic properties of strategic positioning

IMPLICATION FOR THEORY, MANAGEMENT, & POLICY

The Twilight of traditional strategic doctrines : Chivalry is dead