By : Darmadi D.

LOW INTENSITY COMPETITION MODERATE COMPETITION HIGH INTENSITY COMPETITION EXTREME COMPETITION HYPER COMPETITION AVOIDANCE NO COMPETITION PERFECT COMPETITION MONOPOLY PERFECT COMPETITION SCHUMPETERIAN COMPETITION (SEVERAL PLAYER) PERFECT COMPETITION ABNORMAL PROFIT / NO PROFIT / LOSS INTERMITTENT OR LOW PROFIT SUSTAINABLE PROFIT EXCESSIVE PROFIT TYPESTHE 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 LAUNCH EXPLOITATION COUNTERATTACK 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

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 B1 IS POSITION A THE LOW-COST PRODUCERS ? DEPENDS ON COMPETITOR TIDAK ADA YANG MUTLAK HIGH LOW HIGH PRICE 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 DISRUPTION Identifying & 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 DISRUPTION Sustaining 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 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