by : Ari Warokka & Haim Hilman Abdullah
(Dipublikasi pada : INTERNATIONAL SEMINAR & CONFERENCE Faculty of Economics Universitas Negeri Jakarta, November 5, 2010).
AbstractThe search of determinant factors of the intensity of competition is a long quest for developing countries since the 1960s, as the main part to determine their development policies. The intensity of competition has long been recognized as a significant problem in almost all manufacturing related industries. Service sectors are also experiencing the same problems. It is essential for competing companies to understand and take advantage of the dynamic motion and flux of current trends in global markets and technological breakthroughs. This paper aims to describe the determinant factors of the intensity of competition and its implications to manufacturing and service based companies among ASEAN countries. Actions taken by companies in these two sectors provide new insights into what manufacturing and service based companies might expect to occur and how they could respond to such threat. This paper finds that technological change, globalization, and increased competition are the most important environmental challenges facing manufacturing and service sectors today. Technology, in particular, seems to be acting as one of the principal accelerator toward hypercompetitive rivalry in manufacturing and service sectors.
Keyword(s): Competitive strategy; Technology; Manufacturing; Product; Service; Globalization
Introduction
Since the financial and economic crises hit most regions around the globe in the late 1990s, policymakers worldwide have been talking about how to "re-balance" their national economies. Putting back the balance in their economies involves reassessing the mix between the services and the manufacturing sectors. The services sector represents about 70 percent of the American economy, while that of the manufacturing makes up just 11 percent (Foroohar, 2010). The same trend is happening among European countries especially in the U.K., France and Germany. It is totally in the opposite scenario, however, for most developing countries including Malaysia, Thailand, Indonesia and Vietnam (Hilman, 2006).
The intensity of rivalry in the manufacturing sector started in the 1980s when many big companies from the United States, Europe, and Japan moved their business operations particularly their manufacturing plants to foreign countries. Among the most popular destination is the South East Asia region or ASEAN (Association of Southeast Asian Nations). The Foreign Direct Investment (FDI) flows to ASEAN increased by 18% in 2007 from US$44 billions to US$61 billions. Nearly all ASEAN countries received higher inflows and Singapore, Thailand, Malaysia, Indonesia and Vietnam, were the largest FDI recipients that comprised more than 90% of the flows (Karimi, Yusop and Law, 2010). Favourable regional economic growth, an improved investment environment, higher intraregional investments, and strengthened regional integration were key contributory factors and all these have turned ASEAN as a hypercompetitive market . . . . . . .
Keyword(s): Competitive strategy; Technology; Manufacturing; Product; Service; Globalization
Introduction
Since the financial and economic crises hit most regions around the globe in the late 1990s, policymakers worldwide have been talking about how to "re-balance" their national economies. Putting back the balance in their economies involves reassessing the mix between the services and the manufacturing sectors. The services sector represents about 70 percent of the American economy, while that of the manufacturing makes up just 11 percent (Foroohar, 2010). The same trend is happening among European countries especially in the U.K., France and Germany. It is totally in the opposite scenario, however, for most developing countries including Malaysia, Thailand, Indonesia and Vietnam (Hilman, 2006).
The intensity of rivalry in the manufacturing sector started in the 1980s when many big companies from the United States, Europe, and Japan moved their business operations particularly their manufacturing plants to foreign countries. Among the most popular destination is the South East Asia region or ASEAN (Association of Southeast Asian Nations). The Foreign Direct Investment (FDI) flows to ASEAN increased by 18% in 2007 from US$44 billions to US$61 billions. Nearly all ASEAN countries received higher inflows and Singapore, Thailand, Malaysia, Indonesia and Vietnam, were the largest FDI recipients that comprised more than 90% of the flows (Karimi, Yusop and Law, 2010). Favourable regional economic growth, an improved investment environment, higher intraregional investments, and strengthened regional integration were key contributory factors and all these have turned ASEAN as a hypercompetitive market . . . . . . .
Artikel lengkap dikompilasi oleh/hubungi :
Kanaidi, SE., M.Si (Penulis, Peneliti, PeBisnis, Trainer dan Dosen Marketing Management).
e-mail ke : kana_ati@yahoo.com atau kanaidi@poltekpos.ac.id
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