This paper aims at exploring contributions of differentiation strategy and organizational culture in competitive advantage and performance of Semarang State University UNNES. Result shows that hypothesis one, two and three is accepted. Study finds that differentiation strategy do significantly positively affect competitive advantage, and performance.
The better differentiation strategy and organizational culture will be enhance the competitiveness advantage and performance of Semarang state University. Introduction 2. Literature Review and Hypothesis 2. Competitive Advantage of University Performance 3. Research Design 3. Sample and Data Collections 3. Analysis Technique 3.
Measures 4. Result 4. Univariate Outliers Evaluations 4. Normality Test 4. Reliability and Variance Extract 4. Confimactory Factor Analysis 4. Hyphotesis Testing 5. Discussions and Conclusions Aknowledgements References 1. Introduction By the year every state and private universities in Indonesia are facing a new challenge of a very tight competition. Since the enactment of the PKBLU regulation, universities must be able to maintain their excellence and resale value in order to compete with others.
The PKBLU university regulation aims to improve services to the public without seeking profit and also perform activities based on the principles of efficiency and productivity with flexible financial management.
The competition however is come up because every competitor feel the opportunity to improve their position so that they must continue to compete with the hope to survive and be better than the others. The emerging of a new both public and private universities in Indonesia makes the competition getting tighter. Academic services, infrastructures, bureaucratic management and also employee productivity as well as teaching staff should be apriority of the development.
These increasing number led to tighter competition. At the international level, Indonesian universities position can also be seen from the list of best universities in the world issued by the Time Higher Education Supplement THES. It such an achievement though. Since there are many Indonesian state and private universities are not included in the list, so it is important to realize the un even quality of higher education in Indonesia.
As revealed by Freed, Klugman, Seymour another challenges that must be faced by universities is the accountability to the greater community, financial barriers, greater expectationin improving access of cooperation, more attention on improving the quality, as well as the problems of education costs.
Further more Blustain, Bonser, Rubach stated that the new competitive environment of colleges was formed, in which the college can not be separated from the influence of external events such as changes in demographics, technology, competition among institutions, and the global economy which is too complex.
One form of strategy to win the competition that can be taken and used to improve the performance of a company or institution is a differentiation strategy. Differentiation strategic studies conducted by Susanto states that the company can perform differentiation by identifying the source of competitive advantage that it may have a major distinguish feature owned by institution that does not owned by a competitor and communicating this thing to customers.
A company or institution can offer to its customers the three terms of differentiation which is their product differentiation, terms of services and terms of images. However, its links with other firms have been limited, as we will discuss in the next section on strategic alliances.
There is economic value in product differentiation, especially in the case of monopolistic competition. The primary economic value of product differentiation comes from reducing environmental threats. The cost of product differentiation acts as a barrier to entry, thus reducing the threat of new entrants. Not only does a company have to bear the cost of standard business, it also must bear the costs associated with overcoming the differentiation inherent in the incumbent.
Since companies pursue niche markets, there is a reduced threat of rivalry among industry competitors. If suppliers increase their prices, a company with a differentiated product can pass that cost to its customers, thus reducing the threat of suppliers.
Since a company with a differentiated product competes as a quasi-monopoly in its market segment, there is a reduced threat of buyers. A company attempts to make its strategy a sustained competitive advantage. For this to occur, a product differentiation strategy that is economically valuable must also be rare, difficult to imitate, and the company must have the organization to exploit this. If there are fewer firms differentiating than the number required for perfect competition dynamics, the strategy is rare.
If there is no direct, easy duplication and there are no easy substitutes, the strategy is difficult to imitate. There are four primary organizing dilemmas when considering product differentiation as a strategy. They are as depicted below. To resolve these dilemmas, there must be an appropriate organization structure. A U-Form organization resolves the inter-functional collaboration dilemma if there are product development and product management teams. Combining the old with the new resolves the connection to the past dilemma.
Having a policy of experimentation and a tolerance for failure resolves the commitment to market vision dilemma. Managerial freedom within broad decision-making guidelines will resolve the institutional control dilemma. Five leadership roles will facilitate the innovation process: Institutional Leader, Critic, Entrepreneur, Sponsor, and Mentor.
The institutional leader creates the organizational infrastructure necessary for innovation. This role also resolves disputes, particularly among the other leaders. The critic challenges investments, goals, and progress. The entrepreneur manages the innovative unit s. The sponsor procures, advocates, and champions.
There were many specific problems, listed below, however it all started with the inability to understand where the market was headed and how fast it would get there. In other words, the founder and management did not observe and react fast enough to unfolding market events.
The competition certainly was moving more rapidly. This added up to a very poor differentiation strategy. Too bad. Providing seamless Internet access and video anywhere in the home was and is a top priority for telephone and cable providers. This company's solution worked, but the lack of vision and marketing strategy planning became a recipe for a new product failure.
They knew that consumers would not pay that much; But the real cost was really higher because it required a professional installation. In fact, it was worse because depending on the wiring topology of the house, the exact equipment configuration would change. This only served to drive up the installation cost — the phone company installer needed to carry enough inventory on the truck to account for this, install times could vary greatly, resulting in variable costs for time and the product instead of the fixed costs their financial people prefer; Also, telephone companies deal in huge numbers, hundred of thousand if not millions for everything they do - easy and uniform installs is the way they like to go.
Not the case here; Another roadblock was Wi-Fi.These increasing number led to tighter competition. Since companies pursue niche markets, there is a reduced threat of rivalry among industry competitors. The lesson from this business case example is that the company did not understand the market and how fluid it is. Later, Apple introduced the easy-to-use iMac in , and updates following Result 4. This regained up to a very dense differentiation strategy. The Effect of College Strategic on Competitiveness Advantage Differentiation strategy is an act of standard a set of meaningful connections to distinguish the company's offering of foreign characters.
The PKBLU university regulation aims to improve services to the public without seeking profit and also perform activities based on the principles of efficiency and productivity with flexible financial management. This opinion was supported Ferdinand whom states that in a competitive market, the ability of the company to produces performance depends on the degree of competitive advantage. Managerial freedom within broad decision-making guidelines will resolve the institutional control dilemma.
First some background. To realize our ambitious plans we must focus all of our efforts in one direction.
Performance of the company is a concept to measure the achievement of a product there fore differentiation strategy can be one of the main concerns of each company in order to achieve the company's performance Porter, Differentiation allows the company to offer a high price premium price , sell more products at a specified price or obtain an equivalent number of benefits.
The shape of the product: views ofe xcellence function and aesthetic value 2. The Effect of Differentiation Strategic on Competitiveness Advantage Differentiation strategy is an act of designing a set of meaningful differences to distinguish the company's offering of foreign deals. Competitive advantage derived from the differentiation strategy is expected to produce a good performance Ferdinand, It would have been applicable to the industries in which Apple operated. Differentiation strategy is an integrated series of actions designed to produce goods or services that are considered different by the customers in things that are important to them A.
Spindler begrudgingly licensed the Mac to Power Computing in and to Radius who made Mac monitors in Those that are relevant to Apple are product features, product mix, links with other firms, and reputation. Literature Review and Hypothesis 2. A strategic alliance can be a sustained competitive advantage if it is rare, difficult to imitate, and the company has an organization to exploit it. I just did not see how it would make sense. He felt that up-and-coming rival Sun Microsystems would overtake Apollo Computer, which did happen.