MARKETING WAR From SUN TZU
Source: NATIONWIDE No.7 Vol 1
Who does not know Sun Tzu, the legendary war experts with different ideas and his ideas are much admired by various circles. Although the doctrine has more than 2500 years old, but still be relevant not only to the strategy of war but also in the business world, especially marketing.
Sun Tzu who was born around 544 BC is a warlord kingdom of Wu during the war strategy succeeded in bringing the Kingdom of Wu became the most powerful empire at that time. His book is phenomenal is The Art Of War which has been translated into many languages worldwide. Even some countries from Asia to Europe to adopt the style of Sun Tzu's war strategies, including Napoleon Bonaparte.
The success of Sun Tzu in the war as outlined in the book is an inspiration for many marketers since tens of years ago. Various philosophies of war adopted by the marketers try and indeed proved to be quite effective.
Admittedly, in recent years the marketing world is developing very fast. Various products and new brands popping up, competition becomes more intense and the marketing war is inevitable.
No one feels when we try to learn some of Sun Tzu's war strategies, which if very relevant and can be an inspiration in every marketing decision. To that end, the authors try to present some very appropriate strategy for the current marketing situation.
First, in the days before BC, Sun Tzu had clearly taught the soldiers how the importance of having information. For Sun Tzu, has won the war not only rely on the number of troops that a lot with adequate weaponry. War is how to win it with a clever, without conflict and economical cost.
Sun Tzu said "Know yourself, recognize the other person, then the battle 100 times, 100 times to win. Get to know us but do not know the enemy, the battle of 100 times, 50 wins and 50 defeats. Not knowing who we are and do not know the enemy then 100 times 100 times the battle will be lost. "
The importance of this information is often ignored by marketers. Marketers often rely solely on information already available in the public and is very proud if it has a good product, when all is not guarantee winning the competition.
Still remember the war between Dimension vs. shampoo rejoice? Rejoice issued by Procter & Gamble (P & G) is a 2in1 shampoo which has been launched in various countries abroad and has proved successful. Seeing this success Unilever with clever can "sniff" P & G's intent to launch rejoice in Indonesia.
This whiff finally makes Unilever take immediate action to launch Dimension rejoice in Indonesia before coming to Indonesia. The launch of Dimension was a great success and should make rejoice bite the fingers due to not getting the results that I achieved in several other countries.
No wonder if Sun Tzu said that "Leaders who are smart are those who can use the intelligence to obtain information on competitors maneuver." Rejoice vs. Case Dimension shows how a good product alone is not enough if your opponent has a more sophisticated information from us. Therefore, every marketer should be looking for information as accurately as possible about the opponent so as not to miss.
Second, for Sun Tzu, to win the war is not merely a matter of prestige and power struggles. "Parties who will win the war is the party that understands when to fight and when to vote no." That's the philosophy that shows how we must fight smart.
Let's see just how marketers are often stuck with a competitor maneuvers that should not need to be addressed. This trap has experienced even by the company for coca-cola. Still remember the maneuvers blind tests conducted by Pepsi Cola?
At that time, Pepsi made an ad featuring two types of coke, but the brand at the bottle of Coke is covered. Then Pepsi ask some people to try a second coke without the brand. The result was mainly to say that one of the coke has a more delicious flavor. Coke apparently is Pepsi-Cola.
These maneuvers provoked by Pepsi, Coca-Cola launched New Coke then with various modifications taste. What happens then? It turned out that New Coke was actually backfired for the Coca-Cola because many consumers are protesting this new product, and they want a Coca-Cola with the original flavor as the previous.
Coca-Cola's mistake is known as one of the biggest marketing blunders of this history. This case shows that the company should respond cautiously competitor attacks. Marketers must recognize correctly when to attack and when to hit the deck.
Third, another of Sun Tzu's philosophy is "lewatilah other routes that have not passed by your enemies." This philosophy actually teaches us how to not fight head-on with competitors. In marketing, this means we must find a niche market (niche market) market that is untouched by our competitors.
Who does not know the Extra Joss, drinks energy supplements in the form of sachets which had horrendous world of marketing in Indonesia. As other energy supplement drink fought each other in large cities, Extra Joss actually do gferilya by going into small towns that have not been touched by other brands.
Entering the small towns that still low levels of competition provide a space large enough for Extra Joss to expand and continue growing. After conquering this market niche and then widely known, then tried to enter the major cities and compete with other brands. This of course is based on the consideration that the Extra Joss has had sufficient capital to control these small towns.
This philosophy inspires us that we should not fight frontally with a competitor. Look for markets that have not been touched by anyone and Overcome the area.
Fourth, "Do not try to attack your opponent's high-spirited. Attack your opponent when they are in a position of weakness and want to return to camp. " For marketers, this principle menganjarkan so that we can compete with the elegant and precise timing.
If I mention Rinso detergent and So Klin, I am sure all readers would know him well. These are the two brands of detergent detergent giant that controls the Indonesian market. That may be true in the period before the crisis, but his condition was little changed after the crisis.
When a crisis where people's purchasing power decreases while production costs increased, both the detergent is indeed seem bewildered face of this crisis situation. Can be said, they also began to improve efficiency, especially advertising.
When detergent comes ituy Daia (Klin So who is his brother) who offer cheaper prices with the benefits that can be relied upon. With the incessant, Daia launched several ads by jor-rod precisely in time the two brands is somewhat reduced its ad. This strategy ultimately makes Daia became one of the major players in the world of detergents Indonesia with a large enough market share.
For that, try a sari know when your opponent is prone and when it is being advanced. Hang in there when your opponent is smart and move forward quickly when the opponent is prone.
Fifth, "Someone should be able to move the location of the leader of the camp so that your opponent can not predict our movement." This philosophy is the way Sun Tzu to confuse his opponent. It is also widely adopted by marketers.
If I mention the low tar low nicotin cigarettes (LTN), many of us will mention the brand Sampoerna A Mild. A Mild is a market leader in LTLN, this result is not only a capital of just hockey.
When the other tobacco companies have not thought about cigarettes LTLN, Sampoerna A Mild skillfully launched ahead of its competitors in 1989. the first appearance in this market that ultimately makes A Mild can be number one. Is A Mild does not have a competitor? Obviously not.
Several newly emerging brands trying to attack the A Mild, but just look at the various communications programs A Mild are very clever and always confusing his opponent. The advertising of the famous such as "How Low Can You Go", "Not Basa Basi", "Others Can Only Follow", and "Get The Real Low" shows how A Mild always changing, so competitors can not follow such a competitor and finally gerakkannya are overwhelmed and can never be defeated A Mild.
Fifth-style battle Sun tzu's philosophy is to show how the strategies of war can also apply in the marketing world. The most important thing for marketers is not necessarily a frontal war and it cost a lot. Some examples above show how the war should not frontally with the lowest possible cost. All this of course on condition that we must understand the enemy and the battlefield well.
In other words, not enough to just understand your customers because your competitors also must understand consumers well. Understand also maneuver to be performed competitors and move faster and smarter so that consumers can love and loyalty with your brand.
Showing posts with label File-file ketika membantu Dr. Baiquini MS. Show all posts
Showing posts with label File-file ketika membantu Dr. Baiquini MS. Show all posts
Monday, 8 March 2010
Strategy
What is Strategy?
By Michael E. Porter
Over the past nearly 20 years, the managers learned how to play with some new rules. Businesses must also flexible in responding to the rapid changes taking place in the competition and the market, continues to perform benchmarks for the achievement of efficiency and retain some core competencies that are not lagging behind its competitors ..
Positioning, who had advanced heart of the strategy, no longer used because it was considered too static in the face of such dionamis markets and rapid technological change. According to the new dogma, its competitors would quickly imitate any market position, and competitive advantage then became temporary.
But all it contains half truths that could be dangerous, and lead more companies to track competition destroy each other. True, that some of the obstacles to compete to be lost because the rules become much simpler and markets become global. True, that companies invest its energy more wisely in order to become increasingly lean and agile. However, in many industries the so-called hyperpersaingan become a troublesome wound himself, and not be terlakan not result from a paradigm of competition is changing.
Root of the problem lies in the failure to distinguish between operational efktivitas with strategy. Research is being done to raise the level of productivity, quality, and speed emnghasilkan a large number of tools and management techniques such as total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, change management. Despite successfully making operational improvements are dramatic, many companies are experiencing frustration at not being able to translate what they got into sustainable profitability. And little by little, almost nothing felt, replace the management tools strategy. Effort from managers to make progress in all sectors and even make them stay away from the competitive position.
EfektifitasOperasional: Need But It Is Not Enough
A company can only beat its rivals if they can create a uniqueness that can be retained.
Similarly, the differentiation comes from the choice of activities and how activities are performed.
A wave of industry consolidation that occurred recently through the merger into the competition can be understood in the context of operational effectiveness. Driven by pressure to improve performance but is less supported by a strategic vision, almost all companies have no idea other than to buy companies that are competitors. Companies that live longer than others, and not a company that has a real advantage.
2. The uniqueness of the strategy is largely determined by activities
The essence of competitive strategy is a difference. The point is deliberately choosing a different group of activities in order to produce a unique combination of values.
Strategic positions emerge from three different sources, which are interrelated to one another and tend to complement each other. First, positioning can be based on ativityas producing some of the products or services) for the basic choices made atasa variety of products or services and not on customer segments. Diversity bersdaarkan positioning new product / service has economic sense when a company can very well produce a particular product or service using a different set of activities.
People who use Vanguard or the Jiffy Lube chain responds to the best value for a particular service type. Based on the diversity of positioning products / services to serve customers in large numbers, but most serve only a fraction of their specific needs.
On the positioning of the second kind, the company serves all or even all of the needs of a particular customer group. I call it by positioning on a needs basis. Positioning of this type is similar to the traditional ways of thinking in which the intended target was a group of customers who have needs which berlain differently and this need can be served by a group Threaded activity. There are groups of customers more price sensitive, ask for a different product features and require different kinds of information, support, and service.
Other types of positioning based on this requirement is when the same customer has different needs in different situations or for different types of transactions. The same person, for example, might have needs that are not the same when traveling on business than usual when traveling with family.
Almost all managers are relying on their intuition in formulating their business patterns that match customer needs. But the most important element of need-based positioning is not at all intuitive, and often ignored. The difference in this need not be transformed into a position which means that if the activities undertaken to meet those needs are no different. Had not the thing that is the problem, then each competitor should be able to meet those same needs, and there is no unique or valuable things about positioning.
Positioning the third type is a segmented customer that can be accessed through a variety of ways. They have the same needs with the needs of other customers, but differ in terms of setting activities undertaken to reach these consumers. I call it by positioning based access. Access can function as the geographic scale of a customer or customers or anything that needs a different set of activities to achieve our customers with the best way.
Regardless of who becomes basisnya_____________ diversity, needs, access, or a combination ketiganya______positioning requires a number of activities Threaded because it always presupposes the existence of differences in terms of distribution, namely the differences in terms of corporate activities. But positioning is not selamanyamerupakan difference function of the demand side or the customer. Positioning is based on diversity and access is not dependent on any differences that existed at the customer. However, in practice, the differences in terms of diversity and access are often accompanied differences in needs.
After defining the positioning, we can now begin to answer the question, "What is strategy?" Strategy is about creating a unique and valuable position, involving a variety of corporate activities. If in case there is only one ideal position, then there should be no strategy. These companies will be faced with even just one simple guide, which won the race to discover and master ersebut strategy. The essence of strategic positioning is to choose activities that are different from those made by competitors. If only the same activities as the best way to generate all the variations, to meet all needs, and can access all customers, the company will easily use interchangeably and operational effectiveness will be the determinants of firm performance.
3. In order for Sustainable Can, A Strategic Position Requires Trade-Offs
But a strategic position will not last long if there is no exchange (trade-off) to another position. Trade-Off occurs when the company's activities conflicting with each other. In simple terms it can be said that the trade-off means that the excess in one section requires a reduction in other fields. An airline may choose to serve the meal while raising costs and shorten time to stop on the runway, or could choose not to do it, but it can do both without bear the cost of inefficiency.
Trade-off arising by three reasons. The first is the inconsistency in terms of image or reputation. A company known as a company that produces one kind of value could be the lack kreditibilitas and confusing customers - or even damage the reputation __jika he produces other types of goods or try to produce two goods are not the same at the same time. Ivory soap, for example by its position as a cheap soap will find it difficult to reshape its image in order to align with Neutrogena's reputation as a company that sells medical soap premium level (secondary and above). Efforts to create a new image will have cost tens or even hundreds of dollars on big industries __ and this is certainly a very big obstacle to imitation.
The second and more important reason is that trade-off arises from aktivitasperusahaam itself. Psoisi different (with a range of activities) require configuration (structure) of different products, different equipment, different employee behavior, different skills and different management systems. Many trade-off that illustrates the lack of inflexibility (infleksibilitas) in the case of machines used, employees who are employed, and the system is applied. The more Ikea configuration of activities to reduce cost by allowing their customer to do the assembly and delivery, the more he is less able to satisfy customers who demand a higher level of service.
However, the trade-off can be even more fundamental. In general, the value of destroyed if an activity designed redundantly or not designed properly. For example, although a sales rep can provide valuable assistance to a client and ignore the other customers, the product or service offerings (and some of the costs of issuance) will be in vain for customers in the second. In addition to increased productivity when the variation of an activity is limited. By always providing valuable assistance, salespeople and entire sales activity can often learn and achieve efficiencies of scale.
Finally, a trade-off occurs because of the limited coordination and internal controls. By choosing to compete in one way and not the other way, senior management makes the organization become more clear priorities. Conversely, companies that tried to be anything for all customers, at risk of confusion as employees try to make daily operational decisions without a clear framework.
4. Encouraging Competitive Advantage Adjustment and Resistance
Positioning choices not only determine the activities to be undertaken by a company and how each activity have been prepared, but also how those activities relate to one another. Operational effectiveness associated with achieving the best level in performing each activity or function, while the strategy of combining related activities.
Level Adjustment and sustainability (Suatainabilitas)
Strategic adjustment among many activities is fundamental not only for competitive advantage but also on the sustainability of these advantages. More difficult for competitors to match a group of activities connected to each other than to imitate a particular sales force approach, adapting the technology to process, or imitate a group of features (features) of the product. Positions built on systems of activities far more lasting than the position which is built on the activities individually.
5. Finding Return Strategy
Failure to choose
Usually people think that the threat to come from outside the company's strategy as a result of changes in technology or the behavior of competitors. Although external changes can be a problem for the company, the threat to the strategy often arise from within the company. A good strategy is often undermined by misconceptions about the competition, by the failures that occurred in the organization, and more specifically the desire to expand.
Stunned by predictions about hiperkompetisi, managers increase the ability of the company with a way to imitate what is being done by our competitors. Because urged to think revolutionary, managers chase every new technology in order to save themselves.
Effort to find the operational effectiveness becomes excited because it was considered more concrete and actionable (can be applied). During the past decade, managers are under pressure to improve performance significantly and can be measured. These programs resulted in operational effectiveness menetramkan progress, despite the high profitability could remain elusive. Publications and business consultant flooding the market with information about what is being done by other companies, which triggered the emergence of mentality to do the best. Stuck in a race to achieve operational effectiveness, many managers feel well that they do not need a strategy.
Growth Trap
Of the many influences, the desire to develop good time to have the worst effects of the strategy. Offi-border trade and the things that seemed to insist that companies need to grow and develop. Serve a group of customers and ignore the other customers, for example placing reasonable limits for revenue growth (revenue). Strategies with broad targets that emphasize low prices could result in a loss of sales to customers who attach great importance to the quality of the product or service. Conversely differentiation strategy does not generate sales to customers who are sensitive to price.
Profitable growth
Many companies after restructuring and cost savings, diverting their attention on the company's growth. Often, too, attempts to blur the uniqueness of that growth, leading to a compromise, reducing the adjustment and ultimately damaging the competitive advantage. And in fact, the desired level of growth even endanger the strategy.
What action to maintain growth and strengthen the strategy? In general, the instructions are in order to concentrate more on efforts to deepen a strategic position and not expand and mengkompromikannya. One approach is to look for strategies that trigger the expansion of existing activity system by offering privileges or services that can not be imitated by its competitors or those who do not charge a fee slightly if only relying on one event only. In other words, managers can ask themselves how the activity, how the privileges or form of competition is how, which can be measured or do not harm them because of the company's activities are complementary.
Globalization is often the driving force of growth consistent with its strategy, which opened big markets for a focused strategy. Unlike the expanding activities in the country, to expand globally and further encourage the formation position of a company's unique identity
Leadership Role
Challenge to develop or rebuild a strategy is often highly dependent on the nature and organizational leadership system that is applied. With so many workers who do not want to make choices and trade-offs in organizations, a clear intellectual framework to guide the strategy is something that is needed in order to maintain balance. In addition, the existence of strong leaders who can make pilihanmerupakan something essential.
In many companies, leadership was not reduced in rank to be more than just leading the improvement of operational activities and conduct transactions. But now, the role of a leader is much broader and more important. General management is more than just a job to handle individual functions. The point is strategy: defining and communicating the company's unique position, making trade-offs, and making adjustments between the activities of the company. A leader must be disciplined in mnentukan the changes which the industry and customer needs which will be responded by the company, while avoiding the disruption of organizational and still maintain distinctiveness of the company. Managers at lower levels usually lack the perspective and confidence to have a strategy. There will be a constant pressure to compromise, to loosen the trade-off, and compete with competitors. One of the many jobs performed by a leader is to teach to others in the organization about strategy --- and to say no.
The strategy provides a choice about what not to do and what to do. Setting limits is one of the other functions of leadership. Deciding which groups to target customers, product variations, and which customers need to be served by the company is something fundamental in developing a strategy. But so is deciding to not serve customers or other needs and do not offer a particular product or service model. So, the strategy requires constant discipline and clear. One of the most important functions of an explicit and communicative strategy is to guide employees in making choices that arise because of the trade-offs in each of the activities they do and in daily decisions.
Improving operational effectiveness is an important part of management, but it is not a strategy. While experiencing confusion with those two things, the manager accidentally backed into ways of thinking about competition that drives many of the industry towards convergence (convergence), which compete, which is not beneficial to anyone and can not be avoided.
Managers must be able to distinguish between operational effectiveness strategy. Although it is an essential thing, the two agendas are not the same.
Operational agenda involves continual improvement everywhere and there is no trade-off. Failure in doing this will decrease resistance even for companies that have a good strategy though. Operational agenda is the perfect place for constant change, flexibility, and a relentless effort to achieve the best performance levels. Conversely, strategic agenda is a good place to define a unique position, making clear trade-off, and tighten the adjustment. Inside erkandung businesses are constantly looking for ways to improve and expand the company's position. Strategic agenda demands discipline and continuity, and its main enemy is the confusion and compromise.
By Michael E. Porter
Over the past nearly 20 years, the managers learned how to play with some new rules. Businesses must also flexible in responding to the rapid changes taking place in the competition and the market, continues to perform benchmarks for the achievement of efficiency and retain some core competencies that are not lagging behind its competitors ..
Positioning, who had advanced heart of the strategy, no longer used because it was considered too static in the face of such dionamis markets and rapid technological change. According to the new dogma, its competitors would quickly imitate any market position, and competitive advantage then became temporary.
But all it contains half truths that could be dangerous, and lead more companies to track competition destroy each other. True, that some of the obstacles to compete to be lost because the rules become much simpler and markets become global. True, that companies invest its energy more wisely in order to become increasingly lean and agile. However, in many industries the so-called hyperpersaingan become a troublesome wound himself, and not be terlakan not result from a paradigm of competition is changing.
Root of the problem lies in the failure to distinguish between operational efktivitas with strategy. Research is being done to raise the level of productivity, quality, and speed emnghasilkan a large number of tools and management techniques such as total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, change management. Despite successfully making operational improvements are dramatic, many companies are experiencing frustration at not being able to translate what they got into sustainable profitability. And little by little, almost nothing felt, replace the management tools strategy. Effort from managers to make progress in all sectors and even make them stay away from the competitive position.
EfektifitasOperasional: Need But It Is Not Enough
A company can only beat its rivals if they can create a uniqueness that can be retained.
Similarly, the differentiation comes from the choice of activities and how activities are performed.
A wave of industry consolidation that occurred recently through the merger into the competition can be understood in the context of operational effectiveness. Driven by pressure to improve performance but is less supported by a strategic vision, almost all companies have no idea other than to buy companies that are competitors. Companies that live longer than others, and not a company that has a real advantage.
2. The uniqueness of the strategy is largely determined by activities
The essence of competitive strategy is a difference. The point is deliberately choosing a different group of activities in order to produce a unique combination of values.
Strategic positions emerge from three different sources, which are interrelated to one another and tend to complement each other. First, positioning can be based on ativityas producing some of the products or services) for the basic choices made atasa variety of products or services and not on customer segments. Diversity bersdaarkan positioning new product / service has economic sense when a company can very well produce a particular product or service using a different set of activities.
People who use Vanguard or the Jiffy Lube chain responds to the best value for a particular service type. Based on the diversity of positioning products / services to serve customers in large numbers, but most serve only a fraction of their specific needs.
On the positioning of the second kind, the company serves all or even all of the needs of a particular customer group. I call it by positioning on a needs basis. Positioning of this type is similar to the traditional ways of thinking in which the intended target was a group of customers who have needs which berlain differently and this need can be served by a group Threaded activity. There are groups of customers more price sensitive, ask for a different product features and require different kinds of information, support, and service.
Other types of positioning based on this requirement is when the same customer has different needs in different situations or for different types of transactions. The same person, for example, might have needs that are not the same when traveling on business than usual when traveling with family.
Almost all managers are relying on their intuition in formulating their business patterns that match customer needs. But the most important element of need-based positioning is not at all intuitive, and often ignored. The difference in this need not be transformed into a position which means that if the activities undertaken to meet those needs are no different. Had not the thing that is the problem, then each competitor should be able to meet those same needs, and there is no unique or valuable things about positioning.
Positioning the third type is a segmented customer that can be accessed through a variety of ways. They have the same needs with the needs of other customers, but differ in terms of setting activities undertaken to reach these consumers. I call it by positioning based access. Access can function as the geographic scale of a customer or customers or anything that needs a different set of activities to achieve our customers with the best way.
Regardless of who becomes basisnya_____________ diversity, needs, access, or a combination ketiganya______positioning requires a number of activities Threaded because it always presupposes the existence of differences in terms of distribution, namely the differences in terms of corporate activities. But positioning is not selamanyamerupakan difference function of the demand side or the customer. Positioning is based on diversity and access is not dependent on any differences that existed at the customer. However, in practice, the differences in terms of diversity and access are often accompanied differences in needs.
After defining the positioning, we can now begin to answer the question, "What is strategy?" Strategy is about creating a unique and valuable position, involving a variety of corporate activities. If in case there is only one ideal position, then there should be no strategy. These companies will be faced with even just one simple guide, which won the race to discover and master ersebut strategy. The essence of strategic positioning is to choose activities that are different from those made by competitors. If only the same activities as the best way to generate all the variations, to meet all needs, and can access all customers, the company will easily use interchangeably and operational effectiveness will be the determinants of firm performance.
3. In order for Sustainable Can, A Strategic Position Requires Trade-Offs
But a strategic position will not last long if there is no exchange (trade-off) to another position. Trade-Off occurs when the company's activities conflicting with each other. In simple terms it can be said that the trade-off means that the excess in one section requires a reduction in other fields. An airline may choose to serve the meal while raising costs and shorten time to stop on the runway, or could choose not to do it, but it can do both without bear the cost of inefficiency.
Trade-off arising by three reasons. The first is the inconsistency in terms of image or reputation. A company known as a company that produces one kind of value could be the lack kreditibilitas and confusing customers - or even damage the reputation __jika he produces other types of goods or try to produce two goods are not the same at the same time. Ivory soap, for example by its position as a cheap soap will find it difficult to reshape its image in order to align with Neutrogena's reputation as a company that sells medical soap premium level (secondary and above). Efforts to create a new image will have cost tens or even hundreds of dollars on big industries __ and this is certainly a very big obstacle to imitation.
The second and more important reason is that trade-off arises from aktivitasperusahaam itself. Psoisi different (with a range of activities) require configuration (structure) of different products, different equipment, different employee behavior, different skills and different management systems. Many trade-off that illustrates the lack of inflexibility (infleksibilitas) in the case of machines used, employees who are employed, and the system is applied. The more Ikea configuration of activities to reduce cost by allowing their customer to do the assembly and delivery, the more he is less able to satisfy customers who demand a higher level of service.
However, the trade-off can be even more fundamental. In general, the value of destroyed if an activity designed redundantly or not designed properly. For example, although a sales rep can provide valuable assistance to a client and ignore the other customers, the product or service offerings (and some of the costs of issuance) will be in vain for customers in the second. In addition to increased productivity when the variation of an activity is limited. By always providing valuable assistance, salespeople and entire sales activity can often learn and achieve efficiencies of scale.
Finally, a trade-off occurs because of the limited coordination and internal controls. By choosing to compete in one way and not the other way, senior management makes the organization become more clear priorities. Conversely, companies that tried to be anything for all customers, at risk of confusion as employees try to make daily operational decisions without a clear framework.
4. Encouraging Competitive Advantage Adjustment and Resistance
Positioning choices not only determine the activities to be undertaken by a company and how each activity have been prepared, but also how those activities relate to one another. Operational effectiveness associated with achieving the best level in performing each activity or function, while the strategy of combining related activities.
Level Adjustment and sustainability (Suatainabilitas)
Strategic adjustment among many activities is fundamental not only for competitive advantage but also on the sustainability of these advantages. More difficult for competitors to match a group of activities connected to each other than to imitate a particular sales force approach, adapting the technology to process, or imitate a group of features (features) of the product. Positions built on systems of activities far more lasting than the position which is built on the activities individually.
5. Finding Return Strategy
Failure to choose
Usually people think that the threat to come from outside the company's strategy as a result of changes in technology or the behavior of competitors. Although external changes can be a problem for the company, the threat to the strategy often arise from within the company. A good strategy is often undermined by misconceptions about the competition, by the failures that occurred in the organization, and more specifically the desire to expand.
Stunned by predictions about hiperkompetisi, managers increase the ability of the company with a way to imitate what is being done by our competitors. Because urged to think revolutionary, managers chase every new technology in order to save themselves.
Effort to find the operational effectiveness becomes excited because it was considered more concrete and actionable (can be applied). During the past decade, managers are under pressure to improve performance significantly and can be measured. These programs resulted in operational effectiveness menetramkan progress, despite the high profitability could remain elusive. Publications and business consultant flooding the market with information about what is being done by other companies, which triggered the emergence of mentality to do the best. Stuck in a race to achieve operational effectiveness, many managers feel well that they do not need a strategy.
Growth Trap
Of the many influences, the desire to develop good time to have the worst effects of the strategy. Offi-border trade and the things that seemed to insist that companies need to grow and develop. Serve a group of customers and ignore the other customers, for example placing reasonable limits for revenue growth (revenue). Strategies with broad targets that emphasize low prices could result in a loss of sales to customers who attach great importance to the quality of the product or service. Conversely differentiation strategy does not generate sales to customers who are sensitive to price.
Profitable growth
Many companies after restructuring and cost savings, diverting their attention on the company's growth. Often, too, attempts to blur the uniqueness of that growth, leading to a compromise, reducing the adjustment and ultimately damaging the competitive advantage. And in fact, the desired level of growth even endanger the strategy.
What action to maintain growth and strengthen the strategy? In general, the instructions are in order to concentrate more on efforts to deepen a strategic position and not expand and mengkompromikannya. One approach is to look for strategies that trigger the expansion of existing activity system by offering privileges or services that can not be imitated by its competitors or those who do not charge a fee slightly if only relying on one event only. In other words, managers can ask themselves how the activity, how the privileges or form of competition is how, which can be measured or do not harm them because of the company's activities are complementary.
Globalization is often the driving force of growth consistent with its strategy, which opened big markets for a focused strategy. Unlike the expanding activities in the country, to expand globally and further encourage the formation position of a company's unique identity
Leadership Role
Challenge to develop or rebuild a strategy is often highly dependent on the nature and organizational leadership system that is applied. With so many workers who do not want to make choices and trade-offs in organizations, a clear intellectual framework to guide the strategy is something that is needed in order to maintain balance. In addition, the existence of strong leaders who can make pilihanmerupakan something essential.
In many companies, leadership was not reduced in rank to be more than just leading the improvement of operational activities and conduct transactions. But now, the role of a leader is much broader and more important. General management is more than just a job to handle individual functions. The point is strategy: defining and communicating the company's unique position, making trade-offs, and making adjustments between the activities of the company. A leader must be disciplined in mnentukan the changes which the industry and customer needs which will be responded by the company, while avoiding the disruption of organizational and still maintain distinctiveness of the company. Managers at lower levels usually lack the perspective and confidence to have a strategy. There will be a constant pressure to compromise, to loosen the trade-off, and compete with competitors. One of the many jobs performed by a leader is to teach to others in the organization about strategy --- and to say no.
The strategy provides a choice about what not to do and what to do. Setting limits is one of the other functions of leadership. Deciding which groups to target customers, product variations, and which customers need to be served by the company is something fundamental in developing a strategy. But so is deciding to not serve customers or other needs and do not offer a particular product or service model. So, the strategy requires constant discipline and clear. One of the most important functions of an explicit and communicative strategy is to guide employees in making choices that arise because of the trade-offs in each of the activities they do and in daily decisions.
Improving operational effectiveness is an important part of management, but it is not a strategy. While experiencing confusion with those two things, the manager accidentally backed into ways of thinking about competition that drives many of the industry towards convergence (convergence), which compete, which is not beneficial to anyone and can not be avoided.
Managers must be able to distinguish between operational effectiveness strategy. Although it is an essential thing, the two agendas are not the same.
Operational agenda involves continual improvement everywhere and there is no trade-off. Failure in doing this will decrease resistance even for companies that have a good strategy though. Operational agenda is the perfect place for constant change, flexibility, and a relentless effort to achieve the best performance levels. Conversely, strategic agenda is a good place to define a unique position, making clear trade-off, and tighten the adjustment. Inside erkandung businesses are constantly looking for ways to improve and expand the company's position. Strategic agenda demands discipline and continuity, and its main enemy is the confusion and compromise.
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