Name : Eric Tanudjaja NIM : 1420204032 Program Study : Magister Management S2 Reg B2 (Post Graduate) Lecturer : Mariana Rachmawati, Dr., S.E., M.M. Competitive advantage is a concept that is widely used in commercial contexts, and it is often what causes higher profitability, greater product sales, and the potential to develop indefinitely. According to Michael E. Porter in the book of Competitive Strategy (1982), The Source of differentiation of a firm, is when it provides something unique that is valuable to buyers beyon simply offering a low price. Companies with substantial competitive advantages are better positioned to prosper in their industries and can generally fend off competitors more readily than their competitors. Cost management, product differentiation, and customer service are some of the most prominent elements that influence competitive advantage. These are what win you business today … but they do not guarantee that you will keep that business tomorrow. In other words, what works today may not work tomorrow. So BE CREATIVE. The year 2021 filled with so many distraction and changes to our Marketing plan or company strategy, thus I summarized 8 Strategies to give your organization the Competitive Advantage for this year and for the next. 1 TUGAS MATA KULIAH ADVANCED MARKETING MANAGEMENT SUSTAINABLE COMPETITIVE ADVANTAGES ETAN2021
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Name : Eric Tanudjaja
NIM : 1420204032
Program Study : Magister Management S2 Reg B2 (Post Graduate)
Lecturer : Mariana Rachmawati, Dr., S.E., M.M.
Competitive advantage is a concept that is widely used in commercial contexts, and it is often what
causes higher profitability, greater product sales, and the potential to develop indefinitely.
According to Michael E. Porter in the book of Competitive Strategy (1982), The Source of
differentiation of a firm, is when it provides something unique that is valuable to buyers beyon
simply offering a low price. Companies with substantial competitive advantages are better
positioned to prosper in their industries and can generally fend off competitors more readily than
their competitors.
Cost management, product differentiation, and customer service are some of the most prominent
elements that influence competitive advantage. These are what win you business today … but they
do not guarantee that you will keep that business tomorrow. In other words, what works today may
not work tomorrow. So BE CREATIVE.
The year 2021 filled with so many distraction and changes to our Marketing plan or company
strategy, thus I summarized 8 Strategies to give your organization the Competitive Advantage for
this year and for the next.
1
TUGAS MATA KULIAH ADVANCED MARKETING MANAGEMENT
SUSTAINABLE COMPETITIVE ADVANTAGES
ETAN2021
8 Strategies of Creative Competitive Advantage
It is critical to have a strategy. Every expert defines it differently, but in general, strategy is making
clear and consistent decisions about who we serve, what we provide them, and how we deliver that
to them.
1. Partnership with a company outside our market
2. Differentiate and Innovate
3. Move early to the next battleground
4. Lock up resources
5. Attack from two fronts
6. Introduce a new piece to the game board
7. Coordinate the uncoordinated
8. Embrace what others abandon
1. Partnership with a company outside our market
You can catch your competitors off guard by partnering with a player from outside your market.
Of the 100 companies I studied, 21% cited using this move. One of them was the largest motorcycle
company in the world: India’s Hero Honda. Although Hero Honda produces more than 3 million bikes
a year, they remain relatively unknown in the Western world. Thus, many don’t know of how their
success stems from an ally between two distant enemies: a motor company and a bicycle distributor.
First, a little bit of a backstory. India’s government has protective laws that don’t allow foreign
companies to enter the country unless they create a minority joint venture with a local company. So,
when Honda wanted to sell its motorcycles in India, they needed to find a local partner Logically,
Honda should partner with a company that has experience assembling and distributing motorcycles.
Instead, they chose to align with a family-owned bicycle firm: Hero.
2
Name : Eric Tanudjaja
NIM : 1420204032
Program Study : Magister Management S2 Reg B2 (Post Graduate)
Lecturer : Mariana Rachmawati, Dr., S.E., M.M.
Founded by two brothers in the 1950s, Hero was one of India’s leading bicycle brands who had:
a. Begun adopting just-in-time inventory practices pioneered by Honda and other Japanese
manufacturers.
b. Blanketed India with a large network of independent bicycle dealers (Figure 1).
c. Organized hundreds of suppliers who delivered just in time.
These 3 factors convinced Honda to partner with Hero. This caught the competition off guard. While
their competition was busy focused on running their own dealerships at limited locations, Honda
leveraged Hero’s independent dealers to establish a powerful network of 5,000 outlets. Had Honda
partnered with a “nearby” enemy, it might have remained in a crowded pack of good motorcycle
companies. Instead, by partnering with a distant enemy, Honda became outstanding at its game and
established its dominance over competitors like Suzuki, Yamaha and Kawasaki
2. Differentiate and Innovate
A firm differentiates itself from its competitors when it provides something unique that is valuable to
buyers beyond simply offering a low price. Differentiation allows the firm to command a premium
price, to sell more of its product at a given price, or to gain equivalent benefits such as greater buyer
loyalty during cyclical or seasonal downturns (Michael E. Porter, Competitive Strategy, 1982).
Differentiation and innovation leads to Superior performance if the price premium achieved exceeds
any added costs of being unique.
3
Figure 1.
Name : Eric Tanudjaja
NIM : 1420204032
Program Study : Magister Management S2 Reg B2 (Post Graduate)
Lecturer : Mariana Rachmawati, Dr., S.E., M.M.
Take the case of HEIQ, a Swiss based company leveraging their boundless academic
research network and internal development specialists to invent disruptive new technologies that
meet consumer needs and outperform the market. Engaging with consumer along the entire value
chain, making this company the ideal partner to help their brand
customers innovate, differentiate their products and capture the added value at the point of sale.
Developed in record time and launched after the Swiss authorities announced the lockdown in March
2020, HeiQ Viroblock has had a major impact on the global textile industry and is being
unprecedently adopted by mills around the world. HeiQ Viroblock is seen as one of the world’s most
efficient and effective antiviral/antimicrobial technologies and has been applied by more than 150
brands worldwide and to over 1 billion products from face masks and apparel, to home textiles,
mattresses and curtains.
4
Name : Eric Tanudjaja
NIM : 1420204032
Program Study : Magister Management S2 Reg B2 (Post Graduate)
Lecturer : Mariana Rachmawati, Dr., S.E., M.M.
Since its inception HeiQ has strived to do things differently, to question the
status quo, to create differentiating innovation and added value for our
partners. - CARLO CENTONZE Co-founder & CEO/HeiQ Group and DR.MURRAY