strategi industri spesifik (english) - manajemen strategi

8/14/2019 Strategi Industri Spesifik (english) - manajemen strategi

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McGraw-Hi l l /I rw in 2008 The McGraw-Hi l l Companies, Inc. Al l rights reserved.

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Chapter TitleChapter Title

16/e PPT16/e PPT

Tailoring Strategyto Fit SpecificIndustry andCompany Situations

Screen graphics created by:Jana F. Kuzmicki, Ph.D.Troy University-Flor ida Region
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In a turbulent age, the onlydependable advantage isreinventing your business

model before c ircumstancesforce you to.

Gary Hamel and Liisa Valikangas


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Chapter Roadmap

u Strategies for Competing in Emerging Industriesu Strategies for Competing in Rapidly Growing Markets

u Strategies for Competing in Maturing Industries

u Strategies for Competing in Stagnant or Declining Industries

u Strategies for Competing in Turbulent, High-VelocityMarkets

u Strategies for Competing in Fragmented Industries

u Strategies for Sustaining Rapid Company Growth

u Strategies for Industry Leaders

u

Strategies for Runner-up Firmsu Strategies for Weak and Crisis-Ridden Businesses

u Ten Commandments for Crafting Successful BusinessStrategies
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Matching Strategy toa Companys Situation

Most important

driversshaping a

firms strategic

options fall into

twocategories

Firms competitive

capabilities,market position,

best opportunities

Nature of industry

and competitive

conditions


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u New and unproven marketu Proprietary technology

u Lack of consensus regarding which ofseveral competing technologies will win out

u Low entry barriers

uExperience curve effects may permitcost reductions as volume builds

u Buyers are first-time users and marketing involves inducinginitial purchase and overcoming customer concerns

u First-generation products are expected to be rapidlyimproved so buyers delay purchase until technology

maturesu Possible difficulties in securing raw materials

u Firms struggle to fund R&D, operations and build resourcecapabilities for rapid growth

Features of an Emerging Industry


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Strategy Options for Competingin Emerging Industries

u Win early race for industry leadership by employing a bold,creative strategy

u Push hard to perfect technology, improve product quality,and develop attractive performance features

u Consider mergingwith or acquiring another firmto

Gain added expertise

Pool resource strengths

u When technological uncertainty clearsand a dominanttechnology emerges, try to captureany first-moveradvantagesby moving quickly

u Form strategic allianceswith

Companies having related technological expertise or

Key suppliers


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Strategy Options for Competingin Emerging Industries (continued)

uPursue new customersand user applications

uEnter new geographical areas

uMake it easyand cheapfor first-time buyersto try

productuFocus advertisingemphasis on

Increasing frequency of use

Creating brand loyaltyuUse price cutsto attract price-sensitive buyers


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Strategic Hurdles for Companiesin Emerging Industries

u Raising capitalto finance initial operations until

Sales and revenues take off

Profits appear

Cash flows turn positive

u Developinga strategyto ride the wave of industrygrowth

What market segments to pursue

What competitive advantages to go after

u Managingthe rapid expansionof facilitiesand salestoposition a company to contend for industry leadership

u Defending against competitors trying to horn in on thecompanys success


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What Is the Key to Success forCompeting in Rapidly Growing Markets?

A company needs a strategy predicatedon

growing fasterthan the market averageso it

uCan boost its market share and

u Improve its competitive standing vis--vis rivals


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Strategy Options for Competingin Rapidly Growing Markets

uDrive down costs per unit to enable pricereductions that attract droves of new customers

uPursue rapid product innovation to

Set a companys product offering apart from rivals

Incorporate attributes to appeal to growing numbers ofcustomers

uGain access to additional distributionchannels and sales outlets

uExpand a companys geographic coverageuExpand product line to add models/styles to appeal

to a wider range of buyers


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Test Your Knowledge

Which one of the following is notlikely to be a suitable strategyoption for companies competing in rapid-growth industries?

A. Driving down costs per unit so as to enable price reductions thatattract droves of new customers

B. Pursuing rapid product innovation, both to set a companys product

offering apart from rivals and to incorporate attributes that appeal togrowing numbers of customers

C. Gaining access to additional distributional channels and salesoutlets

D. Expanding the product line to add models/styles that appeal to a

wider range of buyersE. Putting top priority on heavy advertising and other marketing-related

actions calculated to strongly differentiate its product offering from

rivals


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uSlowing demand breeds stiffer competition

uMore sophisticated buyers demand bargains

uGreater emphasis on cost and service

u

Topping out problem in addingproduction capacity

uProduct innovation and newend uses harder to come by

uInternational competition increases

u Industry profitability falls

uMergers and acquisitions reduce number of rivals

Industry Maturity: The Standout Features


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Strategy Options for Competingin a Mature Industry

uPrunemarginal products and models

uEmphasize innovationin the value chain

uStrong focus on cost reduction

u Increase salesto present customers

uPurchase rivalsat bargain prices

uExpand internationally

uBuild new, more flexible competitive capabilities


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Strategic Pitfalls in a Maturing Industry

uEmploying a ho-hum strategywith no distinctivefeatures thus leaving firm stuck in the middle

uBeing slowto mounta defenseagainst stiffeningcompetitive pressures

uConcentratingon short-termprofits rather thanstrengthening long-term competitiveness

uBeing slowto respondto price-cutting

u

Havingtoo much excess capacityuOverspendingon marketing

uFailingto aggressively pursue cost reductions


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Stagnant or Declining Industries:The Standout Features

uDemand grows more slowly than economy aswhole (or even declines)

uAdvancing technology gives rise to better-performing substitute products

uCustomer group shrinks

uChanging lifestyles and buyer tastes

uRising costs of complementary products

uCompetitive battle ensues among industrymembers for the available business


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uPursue focus strategyaimed atfastest growing market segments

uStress differentiationbased on qualityimprovement or product innovation

uWork diligently to drive costs down Cut marginal activities from value chain

Use outsourcing

Redesign internal processes to exploit e-commerce

Consolidate under-utilized production facilities

Add more distribution channels

Close low-volume, high-cost distribution outlets

Prune marginal products

Strategy Options for Competingin a Stagnant or Declining Industry


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End-Game Strategiesfor Declining Industries

u An end-game strategycan take either of two paths

Slow-exitstrategy involving

n Gradual phasing down of operations

n Getting the most cash flow from the business

Fast-exitstrategy involving

n Disengaging from an industry during early stages of

decline

n Quick recovery of as much of a companys investment aspossible


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Features of High-Velocity Markets

uRapid-fire technological change

uShort product life-cycles

uEntry of important new rivals

uFrequent launches ofnew competitive moves

uRapidly evolvingcustomer expectations


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Fig. 8.1: Meeting the Challenge of High-Velocity Change


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uCutting-edge expertise

uSpeed in responding to new developments

uCollaboration with others

uAgility

u Innovativeness

uOpportunism

uResource flexibility

uFirst-to-market capabilities

Keys to Success in Competingin High Velocity Markets


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Competitive Featuresof a Fragmented Industry

u Absence of market leaders with large market shares or widespreadbuyer recognition

u Product/service is delivered to neighborhood

locations to be convenient to local residents

u Buyer demand is so diverse that many firms

are required to satisfy buyer needs

u Low entry barriers

u Absence of scale economies

u Market for industrys product/service may be globalizing, thus

putting many companies across the world in same market arena

u Exploding technologies force firms to specialize just to keep up in

their area of expertise

u Industry is young and crowded with aspiring contenders, with nofirm having yet developed recognition to command a large market

share


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Examples of Fragmented Industries

Book publishing

Landscaping and plant nurseries

Auto repair

Restaurant industry

Public accounting

Womens dresses

Meat packing

Paperboard boxesHotels and motels

Furniture


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Competing in a Fragmented Industry:The Strategy Options

uConstruct and operate formula facilities

uBecome a low-costoperator

uSpecializeby producttype

uSpecializeby customertype

uFocus on limited geographicarea


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Test Your Knowledge

Which of the following is unlikelyto be a promising option forcompeting in a fragmented industry?

A. Employing deep price discounting, extensive advertising, andother muscle-flexing maneuvers to gain market dominance ina select few country markets

B. Specializing by product type or becoming a low-cost operator

C. Specializing by customer type

D. Focusing on a limited geographic area

E. Constructing and operating "formula" facilities at manydifferent locations


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For Discussion: Your Opinion

Assume you are charged with crafting a strategy for

XM Satellite Radio. What strategy alternatives would

you be inclined to give strong consideration? What

strategy alternatives would you be inclined to rejectas unsuitable? Justify your answer.


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Fig. 8.2: Three Strategy Horizons for Sustaining Rapid Growth


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Risks of PursuingMultiple Strategy Horizons

uFirm should not pursue all optionsto avoid stretching itself too thin

uPursuit of medium- and long-jumpinitiatives may cause firm to straytoo far from its core competencies

uCompetitive advantage may be difficult to achievein medium- and long-jump businesses that do not

mesh well with firms present resource strengths

uPayoffs of long-jump initiatives may prove elusive


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Strategies Based on aCompanys Market Position

uIndustry leaders

uRunner-up firms

uWeak or crisis-ridden firms


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Industry Leaders:The Defining Characteristics

uStrong to powerful market position

uWell-known reputation

uProven strategy

uKey strategic concern How to sustaindominant leadership position


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Strategy Options: Industry Leaders

Stay-on-the-offensive strategy

Fortify-and-defend strategy

Muscle-flexing strategy


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Stay-on-the-Offensive Strategies (continued)

u Aggressively seek out ways to Cut operating costs

Establish competitive capabilities rivals cannot match

Make it easier for potential customers to switch their purchases from

other firms to the leaders own products

u Aggressively attack profit sanctuaries of important rivals

u Launch fresh initiatives to expand overall industrydemand Spur creation of new families of products

Make product more suitable for consumersin emerging-country markets

Discover new uses for product Attract new users of product

Promote more frequent use

u Grow faster than industry, taking market share from rivals


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Fortify-and-Defend Strategy

uMake it harder for new firms to enter and forchallengers to gain ground

uHold onto present market share

uStrengthen current market position

uProtect competitive advantage

Objectives


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Fortify-and-Defend Strategy:Strategic Options

u Increase advertising and R&DuProvide higher levels of customer service

u Introduce more brands to match attributes of rivals

uAdd personalized services to boost buyer loyalty

uKeep prices reasonable and quality attractive

uBuild new capacity ahead of market demand

u Invest enough to remain cost competitive

uPatent feasible alternative technologiesuSign exclusive contracts with best suppliers and

distributors


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uPlay competitive hardballwith smallerrivals that threaten leaders position

uSignal smaller rivals that moves to cutinto leaders business will be hard fought

uConvince rivals they are better off playingfollow-the-leader or else attacking eachother rather the industry leader

Muscle-Flexing Strategy

Objectives


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uRunning afoul of antitrust laws

uAlienating customers with bullying tactics

uArousing adverse public opinion

Muscle-Flexing Strategy

Risks


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Types of Runner-up Firms

uMarket challengers

Use offensive strategies to gain market share

u

Focusers Concentrate on serving a

limited portion of market

uPerennial runners-up

Lack competitive strength to do

more than continue in trailing position

Imtrying!


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Obstacles Runner-UpFirms Must Overcome

uWhen big sizeis a competitive asset, firmswith small market shareface obstaclesin trying to strengthen their positions

Less access to economies of scale

Difficulty in gaining customer recognition

Inability to afford mass media advertising

Difficulty in funding capital requirements


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Strategic Optionsfor Runner-Up Firms

uWhen big sizeprovides larger rivals with a costadvantage, runner-up firms have two options

Build market share

n Lower costs and prices to grow sales or

n Out-differentiate rivals in ways to grow sales

Withdraw from market


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u Acquire smaller rivalsto expand companys market reachand presence

u Find innovative waysto drive down coststo win customers from higher-priced rivals

u Craft an attractive differentiation strategy

u Pioneer a leapfrog technological breakthrough

u Be first-to-marketwith newor better productsand buildreputation for product leadership

u Outmaneuver slow-to-change market leadersin adapting

to evolving market conditions and customer needs

u Forge strategic allianceswith key distributors, dealers, ormarketers of complementary products

Offensive Strategies for Runner-Up Firms:Building Market Share


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Rule of Offensive Strategy

Runner-up firmsshould avoid

attacking a leader head-on with an

imitative strategy, regardless of

the resources and staying power

an underdog may have!


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Strategic Approaches for Runner-Up Firms

1. Vacant niche strategy

2. Specialist strategy

3. Superior product strategy

4. Distinctive image strategy

5. Content follower strategy


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uFocus strategyconcentrated on end-useapplications market leaders have neglected

uCharacteristicsof an ideal vacant niche

Sufficient size to be profitable

Growth potential

Well-suited to a firms capabilities

Hard for leaders to serve

Vacant Niche Strategyfor Runner-Up Firms


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uStrategyconcentrated onbeing a leader based on

Specific technology

Product uniqueness

Expertise in

n Special-purpose products

n Specialized know-how

n Delivering distinctive customer services

Specialist Strategy for Runner-Up Firms


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uDifferentiation-based focused strategybased on

Superior product quality or

Unique product attributes

uApproaches Fine craftsmanship

Prestige quality

Frequent product innovations

Close contact with customers togain input for better quality product

Superior Product Strategyfor Runner-Up Firms


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uStrategyconcentrated on ways tostand outfrom rivals

u Approaches

Reputation for charging lowest price

Prestige quality at a good price

Superior customer service

Unique product attributes

New product introductions

Unusually creative advertising

Distinctive Image Strategyfor Runner-Up Firms


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uStrategyinvolves avoiding Trend-setting moves and

Aggressive moves to stealcustomers from leaders

uApproaches

Do not provoke competitive retaliation

React and respond

Defense rather than offense

Keep same price as leaders

Attempt to maintain market position

Content Follower Strategyfor Runner-Up Firms


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Weak Businesses: Strategic Options

u Launch an offensive turnaround strategy(if resources permit)

uEmploy a fortify-and-defend strategy(to the extent resources permit)

uPursue a fast-exit strategy

uAdopt a harvest strategy(a slow-exit type of end-game strategy)


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Achieving a Turnaround:The Strategic Options

uSell off assets to generate cash and/or reduce debt

uRevise existing strategy

u Launch efforts to boost revenues

uCut costs

uCombination of efforts


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What Is a Harvest Strategy?

uSteers middle coursebetween status quo andexiting quickly

u Involves gradually sacrificing market position

in return for bigger near-termcash flow/profit

uObjectives

Short-term- Generate largest

feasible cash flow

Long-term- Exit market


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Types of Harvest Options

uReduce operating expenses to rock-bottom

uHold reinvestment to minimum

uPlace little priority on new capital investments

uEmphasize stringent internal cost controls

uTrim advertising and promotion expenses

uDo not replace employees who leave

uShave equipment maintenance


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u Industrys long-term prospects are unattractive

uBuilding up business would be too costly

uMarket share is increasingly costly to maintain

uReduced levels of competitive effort will not triggerimmediate fall-off in sales

uFirm can re-deploy freed-up resourcesin higher opportunity areas

uBusiness is not a major component ofdiversified firms portfolio of businesses

When Should a HarvestStrategy Be Considered?


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uWiseststrategic optionin certain situations

Lack of resources

Dim profit prospects

May serve stockholder interestsbetter than bankruptcy

uUnpleasantstrategic option

Hardship of job eliminations

Effects of closing on local community

Liquidation Strategy


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10 Commandments for CraftingSuccessful Business Strategies

1. Always put top priority on crafting and executingstrategic moves that enhance a firms competitiveposition for the long-term and that serve toestablish it as an industry leader.

2. Be prompt in adapting and responding to changingmarket conditions, unmet customer needs andbuyer wishes for something better, emergingtechnological alternatives, and new initiatives of

rivals. Responding late or with too little often putsa firm in the precarious position of playing catch-up.


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3. Invest in creating a sustainable competitiveadvantage, for it is a most dependable contributorto above-average profitability.

4. Avoid strategies capable of succeeding only in thebest of circumstances.

5. Dont underestimate the reactions and thecommitment of rival firms.

6. Consider that attacking competitive weakness isusually more profitable than attacking competitive

strength.7. Be judicious in cutting prices without an

established cost advantage.


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8. Employ bold strategic moves in pursuingdifferentiation strategies so as to open up verymeaningful gaps in quality or service oradvertising or other product attributes.

9. Endeavor not to get stuck back in the pack withno coherent long-term strategy or distinctivecompetitive position, and little prospect ofclimbing into the ranks of the industry leaders.

10. Be aware that aggressive strategic moves to

wrest crucial market share away from rivals oftenprovoke aggressive retaliation in the form of amarketing arms race and/or price wars.


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Test Your Knowledge

Which of the following does notqualify as a "commandment"for crafting successful business strategies?

A. Place top priority on crafting and executing strategic moves that will

enhance a company's competitive position for the long-term.

B. Avoid stuck-in-the-middle strategies that represent compromises

between lower costs and greater differentiation and between broadand narrow market appeal.

C. Strive to open up very meaningful gaps in quality or service orperformance features when pursuing a differentiation strategy.

D. Be judicious in cutting prices without an established cost

advantage.

E. Sell or close a crisis-ridden business immediatelyturnaround

strategies are doomed to fail.

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