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Adapted from : Philip S. Nitse, Ph.D. Professor & Chair Department of Marketing

Competitive market position. Adapted from : Philip S. Nitse, Ph.D. Professor & Chair Department of Marketing. FM : Anis Gunawan,MM anisg@pmbs.ac.id. Philip S. Nitse, Ph.D. Professor & Chair Department of Marketing. Western Approach to Strategy. Find Strengths to Match Opportunities

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Adapted from : Philip S. Nitse, Ph.D. Professor & Chair Department of Marketing

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  1. Competitive market position Adapted from : Philip S. Nitse, Ph.D. Professor & Chair Department of Marketing FM : Anis Gunawan,MM anisg@pmbs.ac.id

  2. Philip S. Nitse, Ph.D. Professor & Chair Department of Marketing

  3. Western Approach to Strategy • Find Strengths to Match Opportunities • “The most profitable match of company strengths with opportunities presented by the marketplace which would provide long-term advantage.”

  4. Porter’s Model • Competitive Advantage: Creating and Sustaining Superior Performance, Michael E. Porter, Free Press, 1985

  5. Kotler Model • Market Leader • Market Challenger • Market Follower • Market Nicher PS Jolt Kotler, 1996

  6. Market Leader Strategies JJ • Expanding the Total Market • New Users (J&J Baby Shampo) • New Uses (Arm&Hammer) • More Usage (Michelin Guide) • Protecting Market Share

  7. Protecting Market Share • Position Defense (Coke, hotel) • Flanking Defense (subcompacts) • Preemptive Defense (Cummins) • Counteroffensive Defense (Kodak) • Mobile Defense (Strategic depth) • Contraction Defense (shoot dogs) Kodak

  8. Strategic Market Planning Defensive Marketing Strategies 2.Pertahanan “Samping” Yang diserang 6.Pertahan- an mundur Penyerang 3. Pertahanan “ Inisiatif lebih dulu” 4. Pertahanan “ membalas” 1.Posisi Bertahan 5. Pertahanan “Berpindah-pindah” SC

  9. Market Challenger Strategies • Frontal Attack (Unilever) • Flanking Attack (PepsiCo) • Encirclement Attack (Seiko) • Bypass (Minolta) • Guerrilla Attack (Formula 409) Pepsi

  10. Strategic Market Planning Offensive Marketing Strategies 4.Penyerangan “Tidak Langsung” 2.Penyerangan samping Penyerang Yang diserang 5. Penyerangan Gerilya 1. Penyerangan Frontal 3. Penyerangan melingkar Alex

  11. Market Follower Strategies • Cloner • Imitator • Adapter M

  12. Market Nicher Strategies • Low Volume, High Margin • Specialization • End-Use • Vertical-Level • Customer-size • Specific-customer • Geographic • Product or feature • Quality-price • Service

  13. Sun Tzu Model • Bingfa • 400 B.C. • Sun Tzu, philosopher and then general during the Age of the Warring States • Not translated into western language until 1772

  14. Sun Tzu’s Art of War (Bingfa) • Moral Cause • Leadership • Temporal Conditions • Terrain of Battlefield • Organization and Discipline • Espionage

  15. Sun Tzu SixStrategic Principles • Win All Without Fighting • Avoid Strength, Attack Weakness • Deception and Foreknowledge • Speed and Preparation • Shape Your Opponent • Character-Based Leadership

  16. Western • No western equivalent • Political administration • Scientific management • Military history • influence of probability

  17. Compromise vs. Aggression • Offensive • Moderation • Compromise • Force only one choice of tactics

  18. Fit vs. “Aspiration Disparity” • Fit, Role, Matching • Enough resources to do the job? vs. • Resource mismatch • Mental will-power • “Either or”

  19. Maintaining strategic fit Searches for advantages that are inherently sustainable Searches for niches or does not challenge entrenched competitor Leverages resources Emphasizes accelerated Organizational Learning to build new advantages Produces quest for new rules to devalue incumbent's advantages Western vs. Eastern

  20. Western vs. Eastern Seeks to reduce financial risk by building balanced portfolio of SBU’s Resources are allocated to product-market units Each SBU is assumed to have all the critical skills it needs to be successful Reduce competitive risk by ensuring a well-balanced and sufficient portfolio of advantages Investments made to core competencies as well as product-markets Core competencies span SBU’s

  21. Western vs. Eastern Top management manages profitability of SBU portfolio Corporate consistency comes from adherence to financial objectives Management assures that plans of SBU’s don’t undermine future developments which support Strategic Intent Business function consistency comes from allegiances to intermediate-term challenges with lower level employees encourages to invent ways to meet challenges

  22. Treacy & Wiersema Model The Discipline of Market Leaders: • Choose Your Customers, • Narrow Your Focus, • Dominate Your Market, Michael Treacy & Fred Wiersema, Addison-Wesley, 1995

  23. Treacy & Wiersema Model 1. Operational Excellence 2. Product Leadership 3. Customer Intimacy Intel

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