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

The Customers and More Customers

 THE GENERIC STRATEGIES HAVE TWO
BIGGEST FACTORS

• WHETHER A • WHETHER THE

COMPANY’S MARKET COMPANY IS PERSUING
TARGET IS BROAD OR A COMPETITIVE
NARROW ADVANTAGE LINKED TO
LOWER COSTS OR
DIFFERENTIATION
 The Five Generic Competitive Strategies

Type of Competitive Advantage Being

Pursued

Lower Cost Differentiation

M
A A Broad Overall Broad
R Cross-Section Low-Cost Provider Differentiation
K Of Buyers Strategy Strategy
E
T Best-Cost
Provider
T Strategy
A A Narrow
Focus Focus
R Buyer
Lower-Cost Differentiation
G Segment
Strategy Strategy
E (or Market
T Niche)
 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
Spectrum of buyers
Seeking to differentiate the company’s product
offering from rival’s with superior attributes that
will appeal to a broad spectrum of buyers
Concentrating on a narrow buyer segment (or
market niche) and outcompeting rivals on costs,
thus being able to serve niche members at a
lower price
Concentrating on a narrow buyer segment (or
market niche) and outcompeting rivals with product
offering that meets the specific taste and require-
ments of niche numbers better than the product
offering of rivals
Giving customer more value for their money by
satisfying buyer’s expectations on key quality/
features/service attributes while beating their price.
The lowest (best) costs and prices among sellers offe-
 LOW-COST PROVIDERS STRATEGIES

To achieve a low-cost edge over rivals, a firm’s cumulative costs across its overall
value chain must be lower than competitor’s cumulative cost. Particular attention,
however, needs to be paid to a set of factors known as COST DRIVERS

Perform value chain activities

THE TWO MAJOR more cost-effectively than rivals

AVENUES FOR
ACHIEVING A COST
Revamp the firm’s overall value
ADVANTAGE Chain to eliminate or bypass some
cost-producing activities
COST DRIVERS: THE KEYS TO DRIVING DOWN COMPANY COSTS

Incentive
Economies Learning and
systems and
of Scale Experience
culture

Outsourcing or Capacity
Vertical Utilization
Integration COST
DRIVERS

Bargaining Supply Chain

Power EfFiciencies

Communication
Production
System and
Technology and Input Costs
Information
Design
Technology
Uniqueness Drivers: The Keys to Creating a Differentiation
Advantage

Product
Quality control Customer
features and
processes services
performance

Sales and Uniqueness Production

marketing Drivers R&D

Employee skill, Technology

training and Input quality and
experience innovation
BEST-COST PROVIDER STRATEGIES

The firm take out a middle

ground between pursuing a
low-cost advantage and
WHEN A BES-COST differentiation advantage

PROVIDER STRATEGY
WORK BEST OF
INDICATES
Between appealing to the
broad market as a whole and
a narrow market niche