FM : Anis Gunawan,MManisg@pmbs.ac.id

Competitive market position

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

TopicSuggested

reading

1.The strategic planning processIntro to the Integrating case study

Chapter 1-2

Case 1 :The ABC Cheese Factory2.Portfolio model

Page 202-209Chapter 3

Case 2 :Abbotsleigh Citrus3. The growth strategies

Page 209-212Chapter 4

Case 3 :Degrees South

4. Five force PorterPage 212-217Chapter 5

Case 4 : A retail meat market Question No 15.Competitive generic strategy.

Page 228-237Chapter 8

Case 5 : A retail meat market Question no 2

6 Competitive market position

Case 6 : A retail meat market Question No 3Strategic alliance and network

Page 228-237Chapter 9

Exam -

Philip S. Nitse, Ph.D.Professor & ChairDepartment of Marketing

Western Approach to Strategy

1. Find Strengths to Match Opportunities

2. “The most profitable match of company strengths with opportunities presented by the marketplace which would provide long-term advantage.”

Porter’s Model

• Competitive Advantage:

Creating and Sustaining Superior Performance,

Michael E. Porter, Free Press, 1985

Kotler Model

1. Market Leader

2. Market Challenger

3. Market Follower

4. Market NicherKotler, 1996

PS

Jolt

Market Leader Strategies

1. Expanding the Total Market1. New Users (J&J Baby Shampo)2. New Uses (Arm&Hammer)3. More Usage (Michelin Guide)

2. Protecting Market Share

JJ

Protecting Market Share

1. Position Defense (Coke, hotel)2. Flanking Defense (subcompacts)3. Preemptive Defense (Cummins)4. Counteroffensive Defense (Kodak)5. Mobile Defense (Strategic depth)6. Contraction Defense (shoot dogs)

Kodak

Strategic Market PlanningDefensive Marketing Strategies

PenyerangYang

diserang3. Pertahanan“ Inisiatif lebih dulu”4. Pertahanan“ membalas”

5. Pertahanan“Berpindah-pindah”

6.Pertahan-an mundur

2.Pertahanan“Samping”

1.PosisiBertahan

SC

Market Challenger Strategies

• Frontal Attack (Unilever)• Flanking Attack (PepsiCo)• Encirclement Attack (Seiko)• Bypass (Minolta)• Guerrilla Attack (Formula 409)

Pepsi

Strategic Market PlanningOffensive Marketing Strategies

PenyerangYang

diserang1. Penyerangan

Frontal

3. Penyeranganmelingkar

4.Penyerangan“Tidak Langsung”2.Penyerangan

samping

5. P

enye

rang

anG

erily

a

Alex

Market Follower Strategies

1. Cloner2. Imitator3. Adapter

M

Market Nicher Strategies

• Low Volume, High Margin• Specialization

1. End-Use2. Vertical-Level3. Customer-size4. Specific-customer5. Geographic6. Product or feature7. Quality-price8. Service

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

Sun Tzu’s Art of War (Bingfa)

1. Moral Cause2. Leadership3. Temporal Conditions4. Terrain of Battlefield5. Organization and Discipline6. Espionage

Sun Tzu SixStrategic Principles

1. Win All Without Fighting2. Avoid Strength, Attack Weakness3. Deception and Foreknowledge4. Speed and Preparation5. Shape Your Opponent6. Character-Based Leadership

Western

1. No western equivalent2. Political administration3. Scientific management4. Military history5. influence of probability

Compromise vs. Aggression

1. Offensive2. Moderation3. Compromise4. Force only one choice of tactics

Fit vs. “Aspiration Disparity”

1. Fit, Role, Matching2. Enough resources to do the job?

vs.3. Resource mismatch4. Mental will-power5. “Either or”

Western vs. Eastern

1. Maintaining strategic fit2. Searches for advantages

that are inherently sustainable

3. Searches for niches or does not challenge entrenched competitor

1. Leverages resources2. Emphasizes accelerated

Organizational Learning to build new advantages

3. Produces quest for new rules to devalue incumbent's advantages

Western vs. Eastern

1. Seeks to reduce financial risk by building balanced portfolio of SBU’s

2. Resources are allocated to product-market units

3. Each SBU is assumed to have all the critical skills it needs to be successful

1. Reduce competitive risk by ensuring a well-balanced and sufficient portfolio of advantages

2. Investments made to core competencies as well as product-markets

3. Core competencies span SBU’s

Western vs. Eastern

1. Top management manages profitability of SBU portfolio

2. Corporate consistency comes from adherence to financial objectives

1. Management assures that plans of SBU’s don’t undermine future developments which support Strategic Intent

2. Business function consistency comes from allegiances to intermediate-term challenges with lower level employees encourages to invent ways to meet challenges

Treacy & Wiersema Model

The Discipline of Market Leaders:

1.Choose Your Customers,

2.Narrow Your Focus,

3.Dominate Your Market,

Michael Treacy & Fred Wiersema, Addison-Wesley, 1995

Treacy & Wiersema Model

1. Operational Excellence

2. Product Leadership

3. Customer Intimacy

Intel