Session 5

THE FIVE GENERIC

COMPETITIVE
STRATEGIES

POKOK BAHASAN
Strategi Kompetitif Generik:
1. Strategi kompetitif generik
2. Strategi biay murah
3. Strategi diferensiasi
4. Strategi fokus (atau pasar khusus)
5. Strategi biaya terbaik
6. Ringkasan perbandingan fitur lima
strategi kompetitif generik.

There are several basic approaches to

competing successfully and
Gaining a competitive advantage over
rivals

The Rivals
Competitive
Advantage of
Strategies

The Companys:
1. A good product at a
lower price
2. A superior product that
is paying more for, or
3. A best-value offering
that represents an
attractive combination of
price, features, service,
and other appealing
attributes

The Customers and More

Customers

THE GENERIC STRATEGIES

HAVE TWO BIGGEST FACTORS
WHETHER A
COMPANYS
MARKET TARGET IS
BROAD OR
NARROW

WHETHER THE
COMPANY IS
PERSUING A
COMPETITIVE
ADVANTAGE
LINKED TO LOWER
COSTS OR
DIFFERENTIATIO
N

The Five Generic Competitive Strategies

Type of Competitive Advantage
Being Pursued
Differentiation

Lower Cost
M
A
R
K
E
T
T
A
R
G
E
T

A Broad
Cross-Section
Of Buyers

A Narrow
Buyer
Segment
(or Market
Niche)

Overall
Low-Cost
Provider
Strategy

Focus
Lower-Cost
Strategy

Broad
Differentiation
Strategy
BestCost
Provider
Strategy
Focus
Differentiation
Strategy

THE FIVE GENERIC COMPETITIVE STRATEGIES

A Low-cost Provider
Strategy
A Broad Differentiation
Strategy

A Focused Low-cost Strategy

A Focused Differentiation
Strategy

A Best-cost Provider
Strategy

Striving to achieve lower overall cost

than rivals
on comparable products that attract a
broad
Seeking
toof
differentiate
the companys pro
Spectrum
buyers
offering from rivals with superior attribute
will appeal to a broad spectrum of buyers

Concentrating on a narrow buyer segment

market niche) and outcompeting rivals on
thus being able to serve niche members at
lower price

Concentrating on a narrow buyer segment (

market niche) and outcompeting rivals with
offering that meets the specific taste and re
ments of niche numbers better than the pro
offering of rivals
Giving customer more value for their mone
satisfying buyers expectations on key qual
features/service attributes while beating th
The lowest (best) costs and prices among s

LOW-COST PROVIDERS STRATEGIES

To achieve a low-cost edge over rivals, a firms cumulative costs acros

value chain must be lower than competitors cumulative cost. Particul
however, needs to be paid to a set of factors known as COST DRIVER

THE TWO MAJOR

AVENUES FOR
ACHIEVING A COST
ADVANTAGE

Perform value chain activities

more cost-effectively than rivals

Revamp the firms overall value

Chain to eliminate or bypass som
cost-producing activities

COST DRIVERS: THE KEYS TO DRIVING DOWN COM

Incentive
systems
and
culture

Outsourcing
or Vertical
Integration

Economies
of Scale

COST
DRIVERS

Capacity
Utilization

Supply
Chain
EfFiciencies

Bargaining
Power
Communicati
on System
and
Information
Technology

Learning
and
Experience

Production
Technology
and Design

Input Costs

queness Drivers: The Keys to Creating a Differentiatio

Advantage
Quality
control
processes

Sales and
marketing

Employee
skill, training
and
experience

Product
features
and
performanc
e

Uniquen
ess
Drivers

Input quality

Customer
services

Production
R&D

Technology
and
innovation

BEST-COST PROVIDER STRATEGIES

WHEN A BES-COST
PROVIDER STRATEGY
WORK BEST OF
INDICATES

The firm take out a

middle ground
between pursuing a
low-cost advantage
and differentiation
advantage

Between appealing to
the broad market as a
whole and a narrow
market niche