Matakuliah : J0474 International Marketing
Tahun
: 2009
Strategic Elements of Competitive Advantage
Chapter 10
Learning Outcome
• Industry Analysis : Forces Influencing Competition.
• Competitive Advantage.
• Global Competition and National Competitive Advantage.
• Current Issues in Competitive Advantage.
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Industry Analysis :
Forces Influencing Competition
Threat of New Entrants
Bargaining
Power of Suppliers
Rivalry
Among
Competitors
Bargaining
Power of Buyers
Treat of
Substitute Products
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Competitive Advantage
Competitive advantage exists when there is a match between
a firm’s distinctive competencies and
the factors critical for success within its industry.
Generic Strategies for Creating
Competitive Advantage
Cost Leadership
Is competitive advantage based on a
firm’s position as the industry’s lowcost producer in broadly defined
markets or across a wide mix of
products
Differentiation
Is competitive
advantage when a
firm’s product has an
actual or perceived
uniqueness in broad
market.
Cost Focus
Or
Focus
Differentiation
?
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Competitive Advantage
The Flagship Firm :
The Business Network with Five Partners
Selected
Competitors
Key
Suppliers
Key
Customers
Flagship
Firm
Other
Suppliers
Key
Customers
governments
Network partners
Non-business infrastructure
Key:
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Network relationship
Commercial Relationship
6
Competitive Advantage
Creating Competitive Advantage via Strategic Intent
Hamel and Prahalad define
competitive innovation as the art of
containing competitive risks within
manageable proportions and identify
four successful approaches used by
Japanese competitors.
Building layers of advantage
Searching for loose bricks
Changing the rules of engagement
Collaborating
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Global Competition and
National Competitive Advantage
National Diamond
Firm Strategy,
Structure,
And Rivalry
Factor
Conditions
Demand
Conditions
Related and
Supporting
Industries
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Current Issues in Competitive advantage.
Dynamic Strategic Interactions in
Hypercompetitive Industries
Arena
Dynamic Strategic Interaction
1. Cost/Quality
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2.
1.
Price wars
Quality and price positioning,
3. etc
2. Timing
and
Know-how
1.
2.
Capturing first-moving advantage
Imitation and improvement, etc
3. Entry barriers
1.
2.
Building a geographic stronghold by
Creating and reinforcing entry barriers
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Summary
• Management can use Porter’s generic strategies model to
conceptualize possible source of competitive advantage.
• Rugman and D’Cruz have developed a framework known as the
flagship model to explain how networked business systems have
achieved success in global industries.
• Porter’s work has been the catalyst for promising new research
into strategy issues. Including D’Aveni’s work on hyper
competition and Rugman’s recent double-diamond frame work for
national competitive advantage
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