Application of Competing Strategies for Winning Tight Competition

• Share
• Tweet

Competitive strategy is the strategic steps planned or not planned to have a competitive advantage that can attract the attention of consumers, strengthen its position in the market, and withstand the pressures of competition (Hariadi,

p.99, 2005). Thus it is understood that the competitive strategy will work well if the company is able to explain the competitive advantage is a better value than competitors. This competitive advantage will allow the company to achieve greater profits than competitors and provide an opportunity to live longer in the competition. Because in a corporate oligopoly situation in some ways depends on the behavior of its competitors-competitors, then choose the appropriate means to compete movement finds the movement that gave results that determine immediately (not a war of serious or protracted), and also leaning as far as possible to the interests of the company concerned itself.

That is, the company's goal is to avoid instability and costly war, which gives a bad result for all participants of the competition, but still benefit certain companies.

A broad approach is to use the advantages of resources and the ability to force that results in accordance with corporate interests, overcome and survive the war continues in the competition we can call this a brute force approach. This kind of approach is only possible if the company has a real advantage, and it will be stable only as long as the company maintained its superiority over the competition and are not misinterpreted and incorrectly attempt to change their position. Some companies seem to view competing movements as merely a brutal power game: abundant resources are deployed to attack competitors. Of course, the strengths and weaknesses of the company helped define the opportunities and threats it faces. However, abundant resources are often not enough to guarantee a satisfactory result will be severe if the competitors (or despair or seem irrational) in a reaction or if a competitor is pursuing very different goals. Moreover, it has a real advantage is not always realistically available to any company that is trying to improve its strategic position. Finally, although the advantages are real, all-out war is very expensive for the winning side and for the losing side and therefore should be avoided.

Movement is also a competitive strategy game. Games can be held and the motion can be selected and implemented in certain ways so as to maximize the results regardless of what resources are available to the company. Ideally, competition war not to happen. Made a motion to compete in an oligopoly situation should be considered as a combination of brute force anything that can be deployed by the company, and cleverly applied.

Movements that do not threaten competition objective is the place to start in looking for ways to improve the position. Based on the analysis of the goals and assumptions mandalam competitors, using the framework, may be found the movements to do the company to increase its profits (or even - the market) without unduly reducing its main competitor, or threaten the achievement of their goals. This movement can be classified into three types, namely as follows:

a. Movement to improve the company's position and fix the position of a competitor even if the competitor does not take the fight. Involves the least risk if such a motion can be recognized. One possibility is that the company can get involved

in practice that not only reduce performance but also reduce the abundance of the achievements of its competitors, such as advertising campaigns improper or poor pricing structure does not comply with the industry.

b. Mamperbaiki movement to improve the company's position and the position of competitors only if there are certain movements that correspond to them.

In most industries, there is a move that would improve the situation of any party if all companies followed. For example, a change that requires a price adjustment costs.

The difficulty with this movement is that all companies may not be followed, because this movement, although in absolute terms would improve their position, but not optimal for them.

c. Movements that will improve the company's position as a competitor will not match it.

A movement that does not threaten the movement that is not followed by competitors depends on a thorough understanding of the opportunities that will be given by the purposes and certain assumptions competitors. This includes the search for movement that will not be honored by the competitors because they do not feel the need to do it (Porter, p.81, 1987).

In the face of growing pressure of competition today, companies need to develop a business strategy which is a strategic plan to build and strengthen the position of competitors' products and services in the markets served by the company (Hariadi, p.37, 2005). According to Hariadi, there are three steps that need to run the company in formulating competitive strategy, namely:

A. Decide which company has the best chance to win the competition.

2. Prduk attributes and develop services that have strong appeal to consumers.

3. Neutralize the movement of the opponent's competition (the competition).

Competitive strategy to focus on plans to compete successfully and provide excellent value to consumers. In relation to the target market as well as the form is trying to achieve a competitive advantage the company, the competitive strategy can be classified as follows:

A. A low cost leadership strategy

A strategy in the provision of products and services to meet the needs of these consumers the lowest possible price.

2. A broad differentiation strategy

A strategy in the provision of products and services to meet the needs of these consumers by accentuating the differences in the way and the specifications of the product than the competition.

3. A best-cost provider strategy

A strategy in the provision of products and services of greater value than the money spent on the consumer. This strategy is a combination between the different products and more unique compared to competitors with lower price levels.

4. A focused or market niche strategy based on lower cost strategy that focuses on providing products and services to meet the market with a more narrow

low compared to competitors.

5. A focused or market niche strategy based on differentiation strategy to serve the narrow and specific in a way that really different from the competitors.

There are two factors that accounted for the company to create the right competitive strategy, the first based on the company's competitive advantage (low cost or differentiation) and the second is based on the scope of competition in the market companies a broad and narrow (Kuncoro, p.90, 2006).

Four types of competitive strategy based on the approach of Miles and Snow, which is as follows:

A. Prospector strategy

That is the strategy that gave priority to the company's success in innovating, creating new products and new opportunities in the market. The strength of this strategy lies in the ability of companies to be able to see the conditions, trends, business environment and the situation is always changing, and its ability to create new products and services that can compensate for changes in the dynamic environment.

2. Strategy Survive

That is the strategy that gave priority to the stability of the target market. This strategy is suitable for companies with fewer product lines and market segments are narrow, because the company was just trying to maintain market than expand it. With the scope of a small market, this strategy focuses on maintaining a market already dominated from attack by competitors. This strategy can succeed as long as the technology and the concept of a narrow product line is still competitive.

3. Analyzer strategy

That is the strategy prioritizes analyzing new business ideas before the company entered the business. Analyzer will pay attention to strategies of other companies that had already been in business is concerned, and

then imitate the ideas and strategies that made competitors that have proven successful.

4. Reactor Strategies

That is a strategy that prioritizes a reaction to environmental changes. The reaction is performed only when there is pressure from the environment are forcing companies to change. There is often a problem unpreparedness to adapt when changes occur quickly and dramatically. (Kuncoro, 2006).

Identify the strategies of competitors, companies must monitor continuously competitors strategy for a smart competitor will revise its strategy from time to time. Their nearest competitor companies are pursuing the same target market with the same strategy.