ADDRESSING

COMPETITION AND
DRIVING GROWTH
GROUP 3 - E2A CLASS

MAGISTER MANAJEMEN
FAKULTAS EKONOMI & BISNIS
UNIVERSITAS AIRLANGGA
2023
 OUR TEAM GROUP 4 - E2A CLASS

ARIF PRASETIO SYAFIRA RANI ALDO

242222041 242222041 242222047 242231048 242231050
Angkatan 60 Angkatan 60 Angkatan 60 Angkatan 61 Angkatan 61
Our Content
1st AGENDA
Addressing Competition and Driving Growth

2nd AGENDA
The Five Competitive Forces That Shape
Strategies

3rd AGENDA
Case Study - Samsung
1st AGENDA
PRODUCT LIFE-CYCLE
01 GROWTH 04 MARKETING
STRATEGIES
COMPETITIVE
02 STRATEGIES FOR
MARKETING IN A
MARKET LEADERS 05 SLOW-GROWTH
ECONOMY
OTHER COMPETITIVE
03 STRATEGIES
 1. GROWTH
TYPE OF GROWTH
• Grow by building your market share
• Grow by developing committed customers and stakeholders
GRO

• Grow by building a powerful brand

• Grow by innovating new products, services, and experiences
• Grow by international expansion
• Grow by acquisitions, mergers, and alliances
WTH

• Grow by building an outstanding reputation for social responsibility

• Grow by partnering with government and NGOs

STRATEGIES OF GROWTH
1. Make the core of the brand as distinctive as possible.
2. Drive distribution through both existing and new channels.
3. Offer the core product in new formats or versions.
 2. COMPETITIVE STRATEGIES FOR
MARKET LEADERS
MAR
KET

TYPE OF STRATEGIES FOR MARKET LEADER

• Expanding Total Market Demand

LEAD

• Protecting Market Share

• Increasing Market Share
ER
 Expanding Total Market Demand
MAR

1 2
KET

Additional
Opportunities New Ways to
to Use the Use the
Brand Brand
LEAD
ER
 Protecting Market Share
1 2
MAR
Proactive Defensive
Marketing Marketing
KET

• Responsive Marketing • Position Defense

• Anticipative Marketing
• Creative Marketing
LEAD
• Flank Defense
• Preemptive Defense
• Counteroffensive Defense
• Mobile Defense

• Contraction Defense
ER
 Increasing Market Share
MAR
1 2
The Economic
KET

possibility of cost
provoking
antitrust
action
4
LEAD

3 The effect of
increased
The danger of market share
pursuing the on actual and
ER

wrong perceived
marketing quality
activities
OTHE 3. Other Competitive Strategies

1 2
R ST

Market Market
Challenger Follower
Strategies Strategies
R AT E

3
GIES

Market
Nicher
Strategies
 3. Other Competitive Strategies
OTHE
DEFINING THE STRATEGIC OBJECTIVE
A AND OPPONENT(S)
R ST

1 • It can attack the market leader

• It can attack firms its own size that are not
Market doing the job and are underfinanced
Challenger • It can attack small local and regional firms
R AT E

Strategies
CHOOSING GENERAL ATTACK
B STRATEGIES
GIES

• Frontal Attack
• Flank attack
• Encirclement Attack
• Bypass Attack
• Frontal Attack
• Guerrilla Attack
 3. Other Competitive Strategies
OTHE
GENERAL ATTACK STRATEGIES
R ST
R AT E
GIES
 3. Other Competitive Strategies
OTHE
2
• CLONER
Market
• IMITATOR
R ST

Follower
Strategies • ADAPTOR
R AT E

Market
GIES

Nicher
Strategies
 Product Life-Cycle Marketing
Prod Strategy (PLC)
uct L

 Introduction
Stra

Product  Growth
ife-C

Life Cycles  Maturity

tegy

 Decline
ycle
(PLC
Mark

 Style
)

Category  Fashion
Product Life  Fads
e

Cycle
ting
 Introduction Stage and the Pioneer
Mark
etin

 Sales growth tends to be slow in the

g St

introduction stage
characteristics
 Profits are negative or low
rate

 Pro-motional expenditures are at their

highest ratio to sales
es gi
 Growth Stage
 Marked by a rapid climb in sales
Mark

 Early adopters like the product,

characteristics
 Additional consumers start buying it
etin

 introduce new product features and

expand distribution
g St
rate

Improves product quality and adds new features and

improved styling
Adds new models and flanker products (of different
To sustain rapid
gi

sizes, flavors, and so forth) to protect the main

market share product
es

Enters new market segments.

growth now, the
Increases its distribution coverage and enters new
firm must: distribution channels.
Shifts from awareness and Trial communications to
preference and loyalty communications.
lowers prices to attract the next layer of price-
sensitive buyers.
 Maturity Stage

1) Growth
Mark

Phase 2) Stable
3) Decaying Maturity
etin
g St
rate

Three ways to
gi

Market Modification
change the
es

Product Modification
course for a Marketing Program Modification
brand
 Declining Stage

1) technological advances,
Mark

Why? 2) shifts in consumer tastes, and

3) increased domestic and foreign
etin

competition.
g St
rate

Firm Will Do
gi

Withdraw
es

Reduce the number of products they offer,

exiting smaller segments and weaker trade channels,
cutting marketing budgets, and reducing prices
further
 Summarizes the characteristics, marketing objectives, and marketing
strategies of the four stages of the product life cycle

Evid
ence
Cycl
for t
e Co
he P
ncep
rodu
t
ct L
ife-
 Five guide-lines for
Mark improving the odds for marketing success in a slow-growth
economy
etin
g in

1) Explore the Upside of Increasing Investment

Econ

2) Get Closer to Customers

3) Review Budget Allocations
a Sl

4) Put Forth the Most Compelling Value Proposition

omy

5) Fine-Tune Brand and Product Offerings

ow-G
rowt
h
2nd AGENDA
THE THREAT OF
01 THREAT OF ENTRY 04 SUBSTITUTES

RIVALRY AMONG
THE POWER OF
02 SUPPLIERS 05 EXISTING
COMPETITORS

03 THE POWER OF 06 FACTORS NOT

BUYERS FORCES
 1. THREAT OF ENTRY
The threat of entry puts a cap on the profit potential of an industry.
The threat depends on the height of entry barriers that are present and on
ENTR
the reaction entrants can expect from incumbents.

Barriers to Entry
1. Supply side economies of scale
2. Demand side benefit of scale
ANC

3. Customer Switching Cost

4. Capital requirements Expected Retaliation
5. Incumbency advantage
• Vigorous response to new entrant
6. Unequal access
E

• Plenty of resources to fight back

7. Government policy
• Drop price to retain market share
• Gain volume by taking it from Incumbents
 2. POWER OF SUPPLIERS
SUPP

Powerful suppliers can squeeze profitability out of an industry that is unable

to pass on cost increases in its own prices.

SUPPLIER IS POWERFULL, IF :
LIER

1. It is more concentrated than the industry it sells to

2. Industry participants face switching costs in changing suppliers
3. Suppliers offer products that are differentiated
4. threaten to integrate forward into the industry5. Incumbency advantage
S
 3. POWER OF BUYERS
Buyers are powerful if they have negotiating leverage relative to industry
participants, especially if they are price sensitive, using their clout primarily to
pressure price reductions.
BUYERS IS POWERFULL, IF :
BUY

1. Large-volume buyers are particularly powerful in industries with high

fixed costs.
2. The industry’s products are standardized or undifferentiated
ERS

3. threaten to integrate backward and produce by themselves

BUYERS IS PRICE SENSITIVE, IF :

1. The purchase represents a significant fraction of its cost structure
2. Buyers have low profits, is strapped for cash, or is otherwise under
pressure to trim its purchasing costs.
3. Buyers outputs not affected much from the purchase quality
4. Industry product has little effect on the buyer’s other costs
 4. THREAT OF SUBTITUTES
SUBT

A substitute performs the same or a similar function as an industry’s product

by a different means. Sometimes, the threat of substitution is downstream or
indirect, when a substitute replaces a buyer industry’s product.
ITUT

THREAT OF SUBTITUTES IS HIGH, IF :

1. It offers an attractive price-performance trade-off to the industry’s
product.
2. The buyer’s cost of switching to the substitute is low
ES
 5. RIVALRY AMONG EXISTING COMPETITORS
High Rivalry limits the profitability of an industry. The rivalry can takes form as
price discounting, new product introductions, advertising campaigns, and service
improvements.
EXIS

THE RIVALRY IS INTENS, IF :

1. Competitors are numerous or are roughly equal in size
2. Industry growth is slow
3. Exit barriers are high
TING

4. Rivals committed to the business

5. Firm cannot read each other’s signals
PRICE COMPETITION OCCUR, IF :
1. Almost identical product with few switching cost
2. Fixed costs are high and marginal costs are low
3. Capacity must be expanded to be efficient
4. The product is perishable
FA C 6. FACTOR NOT FORCES

Industry structure, as manifested in the strength of the five

competitive forces, determines the industry’s long-run profit potential.
T O R

To avoid the common pitfall of mistaking certain visible attributes of an

N O T

industry for its underlying structure. We need Considering the following:

1. Industry growth rate
2. Technology and innovation
F O R

3. Government
4. Complementary products and services
C E S
 Changes in Industry Structure
FA C

1. Shifting threat of new entry

T O R

2. Changing supplier or buyer power

3. Shifting threat of substation
4. New bases of rivalry
N O T
F O R
C E S
 Eliminating rivals is a risky strategy. A profit
windfall from removing today’s competitors
FA C

often attracts new competitors and backlash

from customers and suppliers
T O R

Ketika suatu industri semakin matang, maka:

N O T

 Pertumbuhannya melambat
 Pesaing menjadi semakin mirip
 Profitabilitas industri turun
 Pesaing yang lebih lemah diusir dari bisnis tersebut
F O R

Contoh, terjadi di industri; televisi, mobil salju, dan peralatan telekomunikasi.

C E S

Sifat persaingan dalam suatu industri diubah oleh merger dan akuisisi yang
memperkenalkan kemampuan dan cara bersaing baru. Atau, inovasi teknologi
dapat membentuk kembali persaingan.
 Implications for Strategy

1. Positioning the company

I m p

Strategi dapat dipandang sebagai membangun pertahanan melawan

kekuatan kompetitif atau menemukan posisi dalam industri dimana kekuatan
l i c a t e g y

tersebut paling lemah.

S t r a
t i o n

Using the five forces framework, creative

strategists may be able to spot an industry
s f o

with a good future before this good future is

reflected in the prices of acquisition
r

candidates
 2. Exploiting industry change

Perubahan industri memberikan peluang untuk menemukan dan mengklaim

I m p

posisi strategis baru yang menjanjikan jika ahli strategi memiliki pemahaman
yang mendalam tentang kekuatan kompetitif dan landasannya.
l i c a t e g y
S t r a

Ketika struktur industri sedang berubah-ubah, maka:

t i o n

 Posisi kompetitif baru dan menjanjikan mungkin muncul

 Perubahan struktural membuka kebutuhan baru dan cara baru untuk
s f o

melayani kebutuhan yang ada

 Pemimpin yang sudah mapan mungkin terhambat oleh strategi masa lalu
r

 Pesaing yang lebih kecil dalam industri ini dapat memanfaatkan perubahan
tersebut, atau akan diisi oleh pendatang baru.
 3. Shaping industry structure
Sebuah perusahaan dapat memimpin industrinya menuju cara-cara baru
dalam bersaing yang mengubah lima kekuatan menjadi lebih baik
I m p

Pembentukan Struktur Industri:

1) Membagi kembali profitabilitas demi keuntungan perusahaan lama
l i c a t e g y

2) Memperluas kumpulan keuntungan secara keseluruhan

S t r a
t i o n

4. Redividing profitability
s f o

Untuk memperoleh lebih banyak keuntungan bagi pesaing,

Hal pertama yang dilakukan  menentukan kekuatan mana yang saat ini
r

menghambat profitabilitas industri dan mengatasinya.

Tujuan ahli strategi  untuk mengurangi bagian keuntungan yang bocor

ke pemasok, pembeli, dan barang substitusi atau dikorbankan untuk
menghalangi pendatang baru.
 5. Expanding the profit pool
Ketika
 Permintaan
I m p

 Tingkat kualitas industry

 biaya intrinsik berkurang berkurang /dihilangkan,
l i c a t e g y

Maka Keuntungan semakin besar

S t r a

Total kumpulan nilai yang tersedia bagi pesaing, pemasok, dan pembeli
t i o n

Tumbuh
s f o

6. Defining the industry

Lima kekuatan kompetitif juga memegang kunci untuk menentukan
r

industri yang relevan.

Menggambar batas-batas industri dengan benar di sekitar arena

persaingan sebenarnya terjadi, akan memperjelas penyebab profitabilitas
dan unit yang tepat untuk menetapkan strategi
 Competition and Value
C o m
 Kekuatan kompetitif  mengungkap pendorong
persaingan industri.
p e t i

 Seorang ahli strategi perusahaan akan mendeteksi

ancaman persaingan yang lebih luas dan lebih siap untuk
t i o n

mengatasinya.

 Lima kekuatan kompetitif mengungkapkan:

a n d

 Apakah suatu industri benar-benar menarik dan mereka

membantu investor mengantisipasi perubahan positif
Va l

atau negatif dalam struktur industri sebelum perubahan

tersebut terlihat jelas.
u e
 Typical Steps in Industry Analysis

Define the relevant industry

I n d
Ty p

 What products are in it?

 Which ones are part of another distinct industry?
u s t r

 What is the geographic scope of competition?

i c a l

Assess the underlying drivers of each

y A

competitive force to determine which

S t e p

forces are strong and which are weak

n a l y

and why.
s i n

Identify the participants and segment them into groups

s i s

 WHO ARE: thebuyers, the suppliers, the competitors, the

substitues, the potential entrants
Identify aspects of industry structure
Analyze recent and likely future that might be influenced by
changes in each force, both competitors, by new entrants, or by
positive and negative. your company.
 Common Pitfalls

Dalam melakukan analisis hindari kesalahan-kesalahan umum berikut ini:

 Mendefinisikan industri terlalu luas atau terlalu sempit.
C o m

 Membuat daftar alih-alih terlibat dalam analisis yang cermat.

 Memberikan perhatian yang sama terhadap semua kekuatan
m o n

 Confusing effect dengan sebab.

 Menggunakan analisis statis yang mengabaikan tren industri.
 Membingungkan perubahan siklus dengan perubahan struktural yang
P i t f

sebenarnya.
 Menggunakan kerangka kerja untuk menyatakan suatu industri menarik
a l l s

atau tidak menarik

3rd AGENDA
01 CASE STUDY -
MAR Hot Topic
PROF
KET
I TA B

Market Share Or Profitability

SHAR
ILITY
E OR
?
 Introduction
MAR
1
PROF

Desember 2015
KET

A new head was born

named DJ Koh
I TA B

Profitability
2
SHAR

Difficult
Period
ILITY

3
E OR

Revenue Down
38%
?

(Q2 2015)
 Focus Growth Rates
MAR
PROF

1 2
KET

Samsung is Apple is
dominant in dominant in
market share
I TA B

profitability
SHAR
ILITY

3
some
E OR

manufacturers
don’t focus on
?

profitability
MAR
What Makes the Difference
PROF
KET

Price Stock
I TA B

and Profitability
SHAR
ILITY
E OR
?
MAR Economic Level
PROF
KET

Developed Developing
I TA B

VS Economy
Economy
SHAR
ILITY
E OR
?

High Class Lower Class

 MAR Competition in the Asia-Pacific Realm
PROF
KET
Samsung has
Various
I TA B

Segments
SHAR
ILIT

Tiongkok India
E OR

Samsung Samsung
Y?

Number 3 Number 1
MAR Device Upgrades and Platform Switching
PROF

Apple wins with less than 4% of

KET

customers switching to other

platforms, android loses 22%,
I TA B

windows 30%. Apple updates

their sales more frequently
SHAR

than customers on other

platforms.
ILITY

Sony Ericson research shows

lower switching on high-end
E OR

phones, regardless of platform

?
MAR
PROF

Challenge
KET
I TA B

Platform
Profitability
Make Samsung
SHAR

Diversification
different !!
??
ILITY
E OR
?
 MAR
Mobile Apps and Services
PROF
KET

o Samsung focuses on
I TA B

 Focus on products
o Apple on platforms.
SHAR

making money
when people  Apple sells laptops,
ILIT

use their tablets, apple tv,

wearable technology
phones, not and services. Each
E OR

just when they apple request

reinforces another
Y?

buy them apple request. Apple OS

is connected to others
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
MAR
PROF
KET

Additional
Opportunities New Ways to
I TA B

to Use the Use the

SHAR

Brand Brand
ILITY
E OR
?
 MAR
if DJ Koh was in front of us, then
PROF

this is what we would ask..

KET
I TA B

Samsung has a large market

SHAR

share, but is beaten by apple

ILIT

in terms of profitability,
E OR

what is the right decision for

Y?

DJ Koh?
 Thank You
See You Next Time

ARIF PRASETIO SYAFIRA RANI ALDO

242222041 242222041 242222047 242231048 242231050
Angkatan 60 Angkatan 60 Angkatan 60 Angkatan 61 Angkatan 61