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REZA ASHARI NASUTION, Ph.D
Strategi Bisnis, Branding & Pemanfaatan Teknologi dalam Peningkatan Daya Saing Produk
Ekspor
Sekolah Bisnis dan Manajemen
Institut Teknologi Bandung
Bandung, 25 Juli 2019
PAGE
Ph.D. in International Management and Business Information SystemsChair of Business Strategy and Marketing Research Group at SBM ITB
Research areas cover Business Strategy, Strategic Marketing, Brand and Marketing Communication, Customer Journey and Experience
and Digital Transformation.
Short Biography
REZA ASHARI NASUTION, Ph.D.
Creative Solgan Here
A
G
E
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DA
01 Background
02 The Concept of Competitiveness
04 Other Case Studies
05 Conclusions
03Case Study of Textile Industry of Indonesia
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● The government of Indonesia has set an economic growth target of
5,3% in 2019, higher than the 5.17% record of 2018.
● Export growth becomes a key strategy to achieve the target
growth.
● The government has initiated the simplification of export
procedures and prioritization of export commodities.
● The initiatives should be reinforced by the other relevant
stakeholders, in particular the academia.
● The objective of this presentation is to describe the role of strategy,
branding, and technology to escalate the export competitiveness,
with a focus on the textile industry.
Background
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Tyson, 1992 p.1
“...ability to produce goods and services that meets the test of international competition while [the] citizens enjoy a standard of living that is both rising and sustainable”
The Concept of Competitiveness
Mulatu, 2016 p.53“To be competitive is to raise a nation’s standard of living while being micro-economically competitive in an open economy”. This leads to the emergence of New Theory of Trade.
Porter, 1990The proponents of New Theory of Trade (e.g. Krugman, 1992) stated that international competition exists between companies, not between countries. The countries’ role is to provide adequate supports to make the companies competitive
Pilinkiene et al., 2016 p.4
“Seeking for competitiveness is [thus] based on creating of the strategy of competition and concentrating of the company’s resources on realisation of the strategy.”
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The Concept of Strategy
● “...the major intended and emergent initiatives taken by general managers on
behalf of owners, involving utilization of resources, to enhance the performance of firms in their
external environments.’” (Nag et al., 2007 p. 944).
● Porter (1996):
○ The creation of a unique and valuable position, involving a different set of activities
○ Making trade-offs in competing: to choose what not to do
○ Creating a fit among a company’s activities
● A set of Five P’s: Plan, Ploy, Pattern, Position and Perspective (Mintzberg, 1987).
● A coherent whole of pieces or elements, an integrated set of choices (Arena, Vehicle,
Differentiators, Staging, and Economic Logic) that addresses how the business intends to
engage its environment in order to achieve its objectives (Hambrick, 2005).
● A company’s strategy is the set of actions that its managers take to outperform the company’s
competitors and achieve superior profitability (Thompson et al., 2016).
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Differenti
ation
Arenas
Economic
LogicStaging Vehicles
How will we get there?• Internal development?• Joint ventures?• Licensing/franchising?• Acquisitions?
How will we obtain our returns?• Lowest cost through scale advantages?• Lowest cost through scope and replication
advantages?• Premium price due to unmatchable service?• Premium price due to proprietary product
feature?
How will we win?• Image?• Customization?• Price?• Styling?• Product reliability?
Where will we be active?(and with how much emphasis?)• Which product categories?• Which market segments?• Which geographic areas?• Which core technologies?• Which value-creation stages?
What will be our speed and sequence moves?• Speed of expansion?• Sequence of initiatives?
The Strategic Fit andCompetitive Advantage Tests
Strategy Formulation
The Performance Tests
Internal
AnalysisExternal
Analysis
Sumber: Hambrick (2005)
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Sumber: Badan Pusat Statistik, 2019
Pelemahan Nilai Tukar Rupiah
Terhadap Dolar (bahan baku
tekstil sebagian besar impor)Penurunan Harga
Minyak Global
Kenaikan Harga Tarif Dasar Gas
dan Listrik industri Implementasi Kebijakan
Pemerintah tentang Kesehatan
Pekerja bagi Perusahaan kegiatan pendidikan dan
pelatihan vokasi oleh
Kemenperin
investasi yang cukup
besar di sektor hulu perjanjian
perdagangan luar
negri
Tekanan Harga yang Lebih
Murah dari Barang Impor
Tiongkok
Kenaikan Upah
Pekerja
pasar ekspor yang
prospektif ke
depannya: pasar
Amerika Serikat (AS)
Tarif preferensi untuk produk tekstil Indonesia
INDONESIA - EFTA CEPA
Ekspor Tekstil dan produk tekstil Indonesia k
Australia diprediksi berpotensial untuk
meningkat
INDONESIA – AUSTRALIA CEPA
Free Trade Agreement – Textile Industry
Produk tekstil Indonesia memperoleh tarif 0
INDONESIA - CHILE CEPA
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Operational excellence• Reliable product
• Lowest cost price
• Ease of use / convenience
• Logistic is dominant
Customer intimacy• Loyal customers
• Best customer solution
• Innovation at customer level
• CRM is dominant
Product Leadership• Best product
• Product Innovation
• Flexible production
• R&D is dominant
Value Discipline Model
Sumber:Treacy & Wiersema (1993)
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Production
technology and
designs
Input costsCommunication systems
and information
technology
Cost
Drivers
Economies of
scale
Learning and
experienceIncentive systems
and culture
Bargaining
power
Outsourcing or
vertical
integration
Capacity
utilization
Supply chain
efficiencies
Source: Thompson et al. (2016)
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Sales and
Marketing
Value
Drivers
Product features
and performance
Employee, skill,
training,
experience
Production R&DQuality control
processes
Customer
services
Technology and
InnovationInput Quality
Source: Thompson et al. (2016)
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Physical Resources
Financial Resources
Technological assets
Human assets and intellectual capital
Brands, company image, and reputational assets
Relationships
Organizational resources Company culture and incentive system
Types of Company Resources
Tangible Resources Non-Tangible Resources
Source: Thompson et al. (2016)
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I(Inimitable)
O(Organized)
R(Rare)
V(Valuable)
Competitive
Disadvantage
Competitive
Parity
Temporary
Competitive
Advantage
Unused
Competitive
Advantage
NO NO NO NO
YES YES YES YES
Sustained
Competitive
Advantage
Is the resource or capability….? Is the company well….?
Sustainable Competitive Advantage
Source: https://www.business-to-you.com/vrio-from-firm-resources-to-competitive-advantage/
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Supply Chain
ManagementOperations Distribution
Sales and
MarketingService Profit Margin
Product R&D, Technology, and Systems Development
Human Resource Management
General Administration
Primary
Activities
and Costs
Support
Activities
and Costs
Value Chain
Source: Thompson et al. (2016)
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Sumber: Bierut & Dybka (2019)
Technology Impact on Export Competitiveness
Bierut & Dybka (2019) conducted study in evaluating the influence of the level of price and technology towards export competitiveness of manufacturers in the Eastern European countries.
RESEARCH RESULT:It is indeed incorrect to look at international competitiveness only in terms of price factors. The study of Bierut & Dybka (2019) show that technological factors have a much greater impact on the export market share.
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BRAND
ASSOCIATIONS
The firm
Other
organizations
Evoked
universe
Brand
personality /
Lifestyle
Celebrities /
Characters
Users
Usages /
Experiences
Attributes
Non product
related (mix)
Product
related
Product class
Price
Communicati
on
Distribution
Concrete
Benefits
Attitudes
Functional
Experiential
Symbolic
Brand
Tangible
(visual brand
elements)
Intangible
(set of
associations)
Brand elements Brand equity
Awareness
Associations
Source: Korchia (1999)
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Source: Nasution and Yusuf (2012)
Strategic Branding Management
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Brand
Investment
Brand
Image
Brand
Strength
Brand
Value
Brand and
marketing
investments
Specific
information linked
to the brand in
customer memory
Customers’ global
evaluation of and
response towards
the brand
The economic
value of the brand
to the brand-
owning firm
Customer-based brand equity
Presence
Relevance
Performance
Advantage
Branding
Brand Dynamics(Milward Brown)Changes in Brand Equity
BRAND
Things
Causes
EventsThird party
endorsement
PlacesPeople
Employee
Endorsers
Country of
origin
Channels
IngredientsAlliances Company Extensions
Leveraging Secondary Associations
Other
brandsOEM
(Original
Equipment
Manufacturer)
ODM
(Original Design
Manufacturer)
OBM
(Original Brand
Manufacturer)
Becoming an OBM
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Studi Kasus Batik Aade BandungSource: Nasution and Putri, 2019
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Brand Management at Select Indonesian SMEs
Source: Nasution and Yusuf
(2012)
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Branding Practices Among Several Indonesian Exporting SMEs
OEM (wholesale)
OBM
(both retail & wholesale)
OEM (wholesale) & OBM (retail)
OEM (wholesale) OBM (wholesale)
Model 1
Model 2
Model 3
OBM (wholesale & retail)
Model 4
Reasons of not adopting OBM:
1. Most of them have the capability to produce world-
class footwear goods, however, the issues arise
mostly from the financial resource and
branding/marketing strategies.
2. They were not confident in aiming a higher target
segment of the international market.
3. OEM practice was adopted to add some revenues
and avoid the companies from severe competition.
Source: Sumantri and Nasution (2013)
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Conclusions
● The strategic role of the government is to create a conducive environment to
stimulate competitiveness at the company level
● The company should continuously analyze the external environment in order to
adjust their internal resources to meet the external challenges.
● Technology is an important resource for export competitiveness and
sustainability
● Brand management is still a weak area to be improved
● Staging really matters
● What we do not know:
○ How the exporting firms evaluated and decided the economic logic and value
drivers
○ How the exporting firms decided their ‘vehicles’
○ Is there any information asymmetry among the exporting firms?
○ How good is the strategic management capability of the exporting firms?
○ The brand equity of Indonesia and the exporting firms from the perspective of
the importing countries or firms
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References● Bierut, B. K., & Dybka, P. (2019). Institutional determinants of export competitiveness among the EU countries: evidence
from Bayesian model averaging (No. 2019-043).
● Hambrick, D. C., & Fredrickson, J. W. (2005). Are you sure you have a strategy?. Academy of Management Perspectives,
19(4), 51-62.
● Korchia, M. (1999). A New Typology of Brand Image, European Advances in Consumer Research, 4, 147-154
● Krugman, P. (1992). A decade of the new trade theory. In International Trade Modelling (pp. 1-10). Springer US.
● Mintzberg, H. (1987). The strategy concept I: Five Ps for strategy. California management review, 30(1), 11-24.
● Mulatu, A. (2016). On the concept of 'competitiveness' and its usefulness for policy. Structural Change and Economic
Dynamics, 36, 50-62.
● Nag, R., Hambrick, D. C., & Chen, M. J. (2007). What is strategic management, really? Inductive derivation of a consensus
definition of the field. Strategic management journal, 28(9), 935-955.
● Nasution, R.A. and Yusuf, N.M. (2012). Pattern of Brand Management Activities in Indonesian Small Companies, Working
Paper
● Nasution, R.A. and Putri, H.R. (2019). Changes in Resource Structure of Exporting SMEs in Indonesia and
Internationalization Performance of The Companies, Working Paper
● Pilinkienė, V., Deltuvaitė, V., Daunorienė, A., & Gaidelys, V. (2016). Competitiveness creation and maintenance in the postal
services industry. Springer International Publishing. https://doi. org/10.1007/978-3-319-31906-3.
● Porter, M. E. (1990). The competitive advantage of nations: with a new introduction. Free Pr.
● Porter, M. E. (1996). What is strategy. Published November.
● Sumantri, G.U. and Nasution, R.A. (2013). Barriers in Adopting Original Brand Manufacturing Practice among Indonesia’s
Footwear SMEs, in the Proceedings of the 4th Asia-Pacific Business Research Conference, Singapore, 30 September – 1
October 2013
● Thompson, Jr.,A.A., Peteraf, M.A., Gamble, J.E., and Strickland III, A. J. (2016). Crafting and
● executing strategy-The quest for competitive advantage: Concepts and cases, 20 th Edition. McGraw-
● Hill, New York, NY.
● Tyson, L., (1992). Who’s Bashing Whom? Trade Conflict in High-TechnologyIndustries. Institute of International Economics,