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Showing posts with label Businesses. Show all posts
Showing posts with label Businesses. Show all posts
Smart Flanker are local brands which by-default does not have a strong local advantage as knowledge and understanding of the local market, which refers to the process of local wisdom, or the use of local ingredients unique. In addition, in terms of finance, human resources, management, and technology brands in this group still can not match the ability global players who are in a position of global best practice.

That is, in terms of company size and the amount of capital, the ability of operations management, marketing, human resources, etc., also in terms of the sophistication of technological mastery of local players in this group are relatively disadvantaged. Scale enterprises SMEs, local players in the region, the region's banks, or the company is still family managed traditionally, have to play the role of the smart flanker.

Due to the limitation of strategic resources, the flanker smart players can not compete with the direct opposite way (head to head) against global players. Inevitably they have to play dodge strategy (flanking) and create a rule of the game itself is difficult to enter and rivaled by global players.

Creative
Because of this disadvantage, the innovation and creativity in developing unique strategies and business models, as well as creating a competitive position (competitive position) is different to win a key factor. When their resources are limited, then the biggest asset the companies in this group is creativity: creativity is the currency of success Flankers smart.

Not surprisingly, the players are smart flanker companies are able to steal market share through creative approaches. Call it smart restaurant DCost the value of his approach; Ranch Market with a blue ocean strategy approach, or MAK with a guerrilla marketing approach.

If local challenger facing a global player in an offensive way (attacking) by utilizing the unique experiences they have (read the Giant Beat, 2013), then the opposite flanker smart players avoid direct clash with global players.

Why is that? Because direct clash will certainly result in an unequal fight (David vs. Goliath games), which is so easy to guess who the winners and losers. Art plays a role as a flanking player is what makes the competition among these players pull observed.

Flanking
Flanking strategy is a marketing strategy which was adopted the concept of military strategy. Bottom line, if you have limited resources and lopsided than the competition, then you have to minimize defeat by avoiding direct confrontation. The basic principle is: rather than take a competitor head-on, you look for an area that is uncontested.

In the marketing world, flanking strategy is generally done using the following three principles:

Avoid Confrontations, ie avoid direct confrontation and clash with pesiang. Flanking movement generally conducted in areas devoid of direct war with the target competitor. Powerful tool for doing this strategy is to perform segmentation approach that is different from the dominant competitor. The art of defining segmentation approach is key to success flanker player.

DCost try to avoid competition with blood (red ocean market) by taking a unique position as a value innovator. With the concept of Five Star Quality, Price Street, DCost offer quality seafood menu (feel good, comfortable place, fast service, etc..) With consumers at an affordable price. DCost also avoid direct confrontation in conducting marketing communications campaign that brought the format out of the box and go against the grain.

Move Quickly and Quietly, that is moving quickly and quietly so that no competitor terendus by elephants. Due to fast and not teredus, then this movement is generally mengasilkan surprise attack by a landslide that could knock down a giant player though. The element of surprise is worth more than a thousand tanks, is believed to be an expression of its value by the great warlord.

In the times of the first operation early 2000s, Lion Air is a tremendous player flanker. He did not move quickly and terendus opponent while starting low fare strategy (low rates), which was launched when he opened the route Jakarta-Medan in 2001. The low price strategy coupled with efficiency in flight (inflight) a no frills service (without food). Shape, replaced rice bread save about Rp 12 thousand / passengers no longer have to use aluminum foil.

Dont Be Threatening, which gave rise to the motion as gently as possible so as not to trigger action big threat to competitors. With the abundant resources of the current dominant competitor made in order to always be in the comfort zone (comfort zone) and that they had never thought to counterattack.

When he knew that the battle would be disproportionate power in 2000, Mega Mainstay Kalasan (MAK), hospital equipment manufacturer based in Yogyakarta Kalasan, deliberately away from Jakarta, as the market is most ripe for diperbutkan. With MAK pretty shy away from the dominant players, Paramaount from Japan, go to the district hospital across the country in order not to be a direct threat.

Being a diminutive player is not a curse. Very limited conditions that would make you think smart and creative style Smart Flanker.
PT Lautan Emas Mulia (LEM) which is currently in a period of Suspension of Payment (PKPU), expressed readiness to pay his debts. This is evidenced by the peace proposal.

In a peace proposal put forward, LEM unable to pay debts to creditors starting in January 2014. The gold companies can confidently rely on coal contractor who became his business partner. Since November 2012 the price of gold continues to decline, so did the price of coal. This leads to bad corporate loans. March 2013 LEM had announced the postponement of its obligations to customers.

LEM states that a coal contractor optimistic business partner in January 2014 has been able to operate the result of coal mined. The results can be paid receivables to LEM. In addition, LEM also has assets in the form of two automobiles and gold weighing 6.4 kilograms is still in the hands of the leadership of the branch.

In a debt repayment plan, LEM will only pay the difference in principal debt alone. Payment will be done gradually each month, starting on January 20, 2014 up to 48 months or for four years.

For sale Precious Metals with a pattern of physical contracts are still active contract period will be paid the difference in the amount of 25 percent of the contract value stated in the invoice. While customers who conduct transactions with multiple systems and system Detained Settlement (DS) which is still active will be paid in accordance with the contract value stated in the invoice.

Previously, LEM filed PKPU for itself because bankruptcy sued by its customers. Gold bullion investment company offers a number of products such as the purchase of gold without the facility deposits, gold deposits, retail deposits pawn gold, pawn gold deposits venture capital, conventional purchase, payment rabate buyer, purchase and repurchase extension.

LEM main revenue comes from sales of gold investment products and investment in coal mining to a third party. But because the price of gold fell and coal prices also fell, LEM experiencing financial difficulties and balance of payments. Company was founded in 2010 and then have clients whose debts are due and payable.

Based on the meeting last verification, LEM debt reached USD 618.4 billion. This bill comes from creditors 2,858 spread across several major cities in Indonesia such as Bandung, Bogor, Cirebon, Jakarta, Medan, Palembang, Serpong, and Semarang.
Some time ago I launched a new book Beat the Giant in the annual event of Indonesia Brand Forum (IBF) in 2013 at the JCC Jakarta. In general, this book offers ideas on Indonesian local brand strategy in the face of global giants in the market motherland. In the book I offer four strategic positions that can be taken by local players in the face of a global player by referring to the resources (resources) that they have.

Results of my research over the last year to 30's local brand that successfully hosted in their own country found the recipe for success is very interesting. Namely that the most valuable capital is owned by a local player to win the competition against global brands are the advantages of local (local advantages) that can be used as a point of distinguishing (point of differentiation) them.

The question is, what are the benefits of local (local advantages) they can build? Once again, based on research on the cases companies are written in the book, I divide the local advantages into several groups as follows.

Understanding the Local Market knowledge of the situation, the conditions and characteristics (industry structure, regulatory, competitive landscape, etc..) In the local market. Wardah is local players in the category of cosmetics are gaining considerable market share blessing following the market menggeliatnya Muslim women. In recent years emerging trends in Indonesia where wearing the hijab into a new lifestyle that is in demand among Muslim women. The veiled women look more beautiful, fashionable, and modern.

This trend will then generate the need for customized cosmetic veiled woman. By chance did Wardah position themselves in this market. Once the market is still a niche market, but following the trend, it is now a mainstream market segment is quite large in size. And Wardah able to take advantage (riding the wave) of the developments.

Local Customer Knowledge is an understanding of the sociocultural conditions, values ​​and behavior of local consumers. Sido comes to dominate the market for cold medicine because these companies understand the conditions sosiokulutral Indonesian society in finding solutions to cure diseases like colds's subscription.

Sido Appears know very well that Indonesian consumers unwilling to use solutions with drugs such as paracetamol west for their colds complaints. While traditional solutions such as scrapings assessed painful, inconvenient, and less practical. Sido then comes out with a liquid herbal drug solution in sachet packs. Such insight is difficult to obtain if the player does not have an understanding of the cultural background and values ​​of the local

Local Culture-Local Wisdom which means the use of resource management (production, operations, marketing, sales, etc.) based on culture (local culture) and local knowledge (local wisdom).

Dwi Sapta IMC, an integrated communications agency, able to build loyalty to his clients for a dozen years and even decades of use of emotional approach to client relationships (relationship accounts) that originates in the Indonesian culture is full of familiarity, understanding and empathetic, relying on flexibility, familiarity , confidence, and helpful. Typical approach accounts Indonesian relationship has proved very difficult to imitate by competitors that rely on global account relationship is formal-rational.

Local Relationship: the ability to build a unique relationship closeness (unique relationship) with consumers or local pertner be a potent source of competitiveness in facing global brands. Pawnshops able to dominate the mortgage market in Indonesia for decades owned company already has a cultural connection with its customers, particularly consumers grassroots (bottom of the pyramid).

This unique relationship is formed because Pawnshop could be a solution for consumers in the face of financial problems they face. Pawnshops culturally capable of being a hero for consumers grassroots in solving their financial problems.

In addition to the emotional connection with consumers, the benefits that come from the local relationship can also be in the form of close relationship with the company throughout its channel partners such as distributors, agents, retailers. This close relationship is usually formed due to a business relationship that has lasted long enough to tens of years. This close relationship became a kind of social capital that is difficult to imitate by competitors globally.

Emerging players such as Sido, Kalbe, Djarum, and many other local players have a close relationship with its distribution partners throughout not only a business relationship, but also the closeness of family ties. This relationship is usually established business networks and friendships are unique and would not be owned by global players who have sex with distributor partners formally.

Local Ingredient that use ingredients sourced from local natural resources. Keep in mind that Indonesia keep a very large biodiversity, which can be a raw material products are highly competitive. Since initiated by Martha Tilaar more than 40 years ago, Martha Tilaar Group (MTG) leaned competitive advantage by harnessing the ideas sourced products from local knowledge and natural wealth of Indonesia.

To compete with global brands that dominate the market for skin whitening (whitening) for example, MTG using cosmetic ingredients derived from olive fruit in Kalimantan. Excavate material from the wealth of Indonesian biodiversity is a key factor of competitive advantage MTG.

Messages for local brands: Lets build your local advantages, and beat the giant!!!
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