Business Strategy and Competitive Advantage of Companies

The purpose of this paper is to identify and describe the role of culture and strategic choices in achieving competitive advantage for companies. The research methodology uses a systematic literature review that includes international journals that discuss strategic management. From several journals, an analysis was carried out and a common thread was drawn to get a scientific understanding related to the topic and title of this article. The results of the study indicate that in doing business across countries, it is very necessary to understand the right culture so that the company's presence can be accepted by the community. Companies can achieve competitive advantage by applying the right strategy to the right industry structure or by combining strategies and resources. Companies can implement strategies as needed and do not have to imitate all strategies, for example, companies in Japan only apply Porter's two strategies, the most of which are overall cost advantages, while the second is differentiation, while others use the original Japanese strategy.


INTRODUCTION
Source power possessed by countries in the world in general No equally.There are countries that have wealth natural abundant, however quality source Power people and abilities technology its people low so it really depends on other countries to process source Power nature.Temporary That There are also countries that have it resource nature is very low, but own superiority source Power humans and technology are very high.This matter cause interaction between countries is very important.Developing country characterized by prosperity low society, power buy its people low.However several developing countries have riches natural overflow like for example Indonesia.Abundant wealth the usually become target company foreigners who want drain profit and only A little give contribution to prosperity surrounding community.This matter become something irony in development economy nation.In the middle incessantly expansion company foreign in utilise resources abundant in developing countries should companies are aware of local.Local company must understand the strategy implemented by the company foreigner running activity business in developing countries.Foreign companies the can become partner, can also become necessary competitors get attention Serious.Without introduction of the strategy implemented by the company foreign the impossible company local capable compete with him.
Beside riches abundant nature in developing countries be marked with amount large population with level relative growth tall.Amount large population the become a lucrative market for company multinational For invest capital in developing countries.For case of Indonesian company multinational Already penetrate all sector including mineral mining, oil and gas, telecommunications, fast food, houses sick, retail, and others.All of these become challenge for company local For face it.There are some possible options can done among other things, do competition With the right strategy, it works The same For manage business domestic, or cooperate For manage global business.Local company need understand their ways do For enter business in a country.Understanding standard to customer most typical industry.Innovation Journal of Business and Investment Research Vol. 5, no. 1, April 2019 52 P-ISSN 2460-8211 E-ISSN 2684-706X process, which is methods and techniques new production and distribution designed to make it possible company operate more efficient, very important For success use of leadership strategies cost.(2) Differentiation Strategy Differentiation strategy is series action integrated is carried out For produce goods or services (with possible costs accepted ) who complied customer different with important way for they.Temporary leader cost serve customer usual in a industry, differentiator target valued customers created by means product company different from products produced and marketed by competitors.Innovation product, ie produce method new For solve problem customervia development product or service new -profitable customer.(3) Focus Strategy Focus strategy is series action integrated is carried out For produce goods or services that serve need segment competition certain.With So, company use a focus strategy moment they utilise their core competencies For serve need segment industry certain or niche with exclude others.(4) Leadership / Differentiation Strategy Integrated The purpose of using this strategy is For in a way efficient produce product with a number of feature different.Efficient production is source maintain cost low temporary differentiation is source For create mark unique.Successful company using leadership / differentiation strategies cost integrated usually adapt with fast to technology new and rapid changes in the environment external they.Simultaneously concentrate For developed two sources superiority competitiveness (cost and differentiation ) increases amount activity main and support where the company must become competent.Such a company That often own strong network with party perfect exterior a number of activity main and support.In turn, have Skills in amount more activity big make company more flexible.So in conclusion from generic strategies according to experts on that company can do combination and implementation from various generic strategies.
Understanding superiority compete Superiority competitive (competitive advantage) is defined as bunch differentiating factor company from its competitors and delivers position unique in the market so that more superior from its competitors (Thomas W Zimmererr & Norman Scarborough, 2008).Operate A business no Enough only build superiority competitive just.Key its success is build superiority sustainable competitiveness (sustainable ).In period long, company obtain superiority sustainable competitiveness through his abilities develop set core competencies so company the capable serve customer the target with more Good compared with its competitors.Core competencies according to Zimmerer et.al (2008) is series ability unique developed by the company in field main, such as : quality, service customers, innovation, coaching time, fast responsive, and more from competitor.

METHODS
This article arranged with use Systematic Literature Review (SLR) method.Study material form literature that includes journal discussed internationally management strategic.From several journal done analysis and drawn thread red For get something understanding scientific related with topic and title article This.

FINDING AND DISCUSSION Traditional Strategic Thinking
In accordance with development challenges faced by the company, then thinking strategic also experienced development from time to time.Scientist management strategic in a way traditional center attention them on the phenomenon behavioral and social in company, enable it, to choose and apply the good ones in strategy.Unfortunately, some work This assumed For learn independent strategy implementation from corporate strategy, and independent from context competitive certain in which a company strategy applied.Development latest in view based source Power company confirm return importance learn consequence strategic and social phenomenon behavior in company, but separation from content strategy, or from context competitive company is No

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appropriate (Barney and Zajac, 1994).Consequence competitive phenomenon organization has grow in a way significant during a number of year final.By traditional, interest This has materialized in study strategy implementation.Implementation of traditional strategies has studying and selecting appropriate strategies, as well as the strategy implementation process.In an attempt Here, scientists has relied heavily on drawn ideas and theories from organization economics (e.g., theory cost transaction, theory agency ), theory organizations (e.g., formal organizational models (Barney and Zajac, 1994).

Global Business Strategy
Compete globally more complex than compete domestically.Strategy is required For success in the environment international changes and demands multinational enterprises (MNEs) cope with cost information factor environment like risk politics, risk foreign exchange, change policy government, and so on.successful MNEs own evaluation Very good information and system possible planning For make predictions scientific about influence from change factor operating environment.Apart from that, consider main in global competition is other MNEs' activities and effects them on entries and barriers go out in industries in which MNEs operate.Like consideration For limit activities of MNEs in something industry and strengthen need For adopt a global strategy the whole thing changes environment related with response potency company competitor.MNEs, in designing a competitive global strategy, must continously evaluate superiority Specific company and find method For endure in global competition clear (Rugman, 1985).
Diversity culture Far more from attention level micro.The company pursues a global strategy that requires it with emphasis they are in coordination cross worldwide operations, problems is dimensions strategic too.Study about diversification and management strategies intercultural For understand more Good consequence from global diversification.By special, expanded the concept of " relatedness " (Rumelt, 1974) for application For diversity culture in global company.A global company that enjoys benefit direct from culture international related based on marketing divisions, production, and R&D activities together efficiently.Since globalization require manager For coordinate effort group from culture different national, levels a misunderstanding that is not proportional and conflict (Black & Porter, 1991;Boyacigiller, 1990) possibility complete effort This.Therefore that 's culture company get benefit No direct (i.e., originating from exchange knowledge management ) between international divisions.There's no denying it idea that company obtain benefit economy with expand sector abroad (for example, with squeeze more market big or with access power Work more cheap and material standard ), though simultaneously happen enhancement in diversity culture.However, ceteris paribus, that culture More related global companies Good can utilise synergy culture with deft managing the transfer of activities and knowledge between divisions for maximizing efficiency company.In other words, a global company is established For get more from expansion foreign If they wise take diversity culture become considerations (Palich and Mejia, 1999).Global companies can utilise resource in a way together and with each other profitable and not must consider company foreign has take potency its resources.
Companies can globalized minimize diversity culture through selection employee.For example, when Lotus Development Corporation tried For entering the Japanese market, they try For recruiting team executive local with values culture idiocentric (i.e., individualist in collectivist culture ) for adapt culture more near.Follow policy election all over the world effective reduce diversity overall Lotus culture.This matter Possible remove problem quaint management intercultural, but company No Can so easy avoid other aspects of diversity culture (e.g., culture specifically market demand), and this No doubtful Again will Keep going represent significant obstacles For formation synergy across international divisions.Temporary support For the " value-in-diversity " view continues gaining momentum.Diversity culture in an MNEs perhaps of course bring perspective with different ones For increase taking decision, however global company perhaps find that benefit This more from offset by weaknesses from level diversity.

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Although something answer empirical appears, it's difficult understood to One definite conclusion : diversity culture among possible MNEs will increase.This is a necessary reality understand importance study culture local.Finally, it's important For noted that argument advanced about diversity culture international Possible No in accordance in context domestic (Palich and Mejia, 1999).

Business strategy in Uncertainty
Reaction strategy to organizational uncertainty.A study done to defenders, prospectors, analyzers, balancers, and reactors.The findings are balancers have performance high and reactors have low performance.It is reported that defenders, prospectors and analyzers get moderate Return on Assets (ROA).every year, reactors get the lowest ROA every the year.Business that can life Keep going in a way relatively own high certainty related with customer basically.Reactors have customer basic at least certain (Parnell, Lester, and Menefee, 2000).
Control Strategic For ensure that the Strategy is implemented as planned and for form a content strategy during implementation.Temporary There is tool analysis available For designing control strategic that ensures implementation, no There is comparable available tools For designing form control strategic that can be applied to content strategy during implementation.Given the rapid globalization and convergence of markets grow and change in industry and technology, companies will the more need For moving outside its usual domain into new and developing markets ability new For endure or ride Strategy like This tend more based on assumptions from knowledge and demands company For overcome uncertainty environment more from internal strategy familiar business in developed markets.Companies need For Keep going build a strategy for reflect understanding they develop from new domains and changes environment.As a result, there is need urge For develop helpful tool manager and control strategy content (Muralidharan, 2004).
Spanos and Lioukas (2001) research states characteristic exploration research important parameters special For election sample.First, research focused on the company independent (or business unit single ) so strategy effects can checked on level company.Second, focus on the company single require sample sufficient inter -industry size and generalization results.The company employs a minimum of twenty employee For ensure structure operation smallest.Samples are collected from population companies in Greece which include industry manufacturing which includes food and drink, wood and products furniture, materials chemistry, products metal, machines, equipment electricity, and equipment.Research result show assets company cause effect positive directly on market performance however not on profitability.By general results show just profitability influenced from element structure industry Good in a way direct nor No directly, that is strength suppliers, and from market performance.This is important Because apparently For support view that market performance is key For profitability, at least For company in sample.Research result This in line with literature organization industry traditional showing that No exists competition fierce, company Can deploy more levels big manage control price, so enjoy profit (Bain, 1951).Competition existing competitive (direct or No direct ) effect significant negative to profitability.On the contrary influence significant only concerning market performance.Therefore that, besides from influence negative intuitive justified For market performance apparently that non-price competition No influence profitability company in sample.Decline strength supplier as consequence from an " offensive " position start (effect No directly ), in line with argument this will own effect positive on profitability, because that's what happened with findings This.In connection with effect of company assets, as postulated in model and hypothesis development, costs originating rent from assets the can categorized as to in direct (" pure ") and effect efficiency No direct.Important meaning from effect to market performance seems to be indicated that efficiency implementation, originates from a relatively superior asset base to rivals, very important in possible company For maintain position share tall.Effects No direct found significant connection with market performance, however No For profitability.For summarize the, findings This apparently show that together with activity

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strategic second industry and effects asset company in a way significant influential to success company.
Based on article research in research forums special contribute to the company's strategic knowledge in emergency economy from perspective theoretical and p analysis economy empirical.One of criteria main reception for this Forum is demonstration development theory.Development theoretical useful For interesting framework related work with institutional, theory cost transactions and theory institution.and company based resource.This matter anticipated as an emergency market, institutional First being most relevant, followed by theory cost transaction / theory institutions, and by theory based source Power.A number of contribution moment develop an integrating perspective theory institutional with cost transaction economics, based source Power seen perspective each other related.Context institutional in researching developing countries show important For understood.Observation in turn show attention must addressed For inspect obstacle For the emergence of market-based strategies in companies in emerging market economy.Issues the key will be addressed involve consideration lack of climate progress Because implementation not enough appropriate or obstacle manager block ability For implement related market strategies.The implications is For development Skills managerial and bebavior.For as far as the last one Yes, the issue raised about economy environment, infrastructure institutional.A number of work served in this Forum point For influence negative Keep going from government and influence network social and cultural.Obstacle For appearance identified market economy recommended For effort scope theory to front For connect factor institution with perspective other theoretical.In context This is market development in an emergency economy covered by a dedicated Forum give rise to issues about so far convergence from system economics that occur on p infrastructure laws, institutions, companies, and mechanisms government.Question certain submitted about second desirability and feasibility introduce or even force type America's approach in developing countries.
Study theoretical and empirical more carry on required For possible understanding about issues This.The term " developing countries " indicates an ongoing process during sufficient period time.Companies in different markets and different countries possible expected For adopt market -based strategies at different times and factors level Institutions also change at different times.Additionally, market -based strategy development is not Possible monotonous ; company expected can involved in extensive search and experimentation, and learning Possible No perfect.Observation This shows, first, the need For longitudinal study.However, a little research has use longitudinal approach.In collection moment This is only three articles (Kbanna and Paiepu, Cbang and Hong, and Filatotcbev, Buck, and Zhukov) have perspective in line.Therefore that, second needs and scope For future longitudinal studies.Second, there is need For analysis company to front ' related with a process of search, experimentation, and study.This process No only clear influence interaction company with environment company and at level business, but also related with development internal functions and interrelationships they with strategy.Attention can focus on stage early market emergency, however need develop second function like marketing and management source Power man as previously has Yes, it's important For creation source power required For reach superiority sustainable competitiveness (Hooley, 1993;Soulsby & Clark, 1996).
Special forum research also suggests need For future research at this level functional analysis strategic, because only two, those by Bae and Lawler and Aulakh, Kotabe, and Teegen, researched problem functional.Like mentioned in the section Before that, focus research on corporate strategy in developing countries until moment This is Cbina and several Middle Eastern and Eastern European countries.However, 64 countries in four regions (Latin America, Asia, Africa/Middle East, and Central and Eastern Europe ) have has identified as a developing country.Therefore that 's necessary For Enough expansion of the research agenda For embrace developments in the country.Many countries pay attention in study small ; especially the Africa/Middle East region and some republic of the Soviet Union.What's important is that countries don't only entered For

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give test theory already There is in corporate strategy not yet in other markets.There is a need For develop understanding factor theoretical and empirical promote and limit appearance new market economy.Addition comparative study factor This is in a different developing country guaranteed.More from One decade since fall communism in the Middle East and Eastern Europe and many years to the market development process in East Asia, and Latin America, clearly that developing country individuals experience progress with very different way.Several countries it seems has is at in development progress they with the market, others have become relatively develop with OK, and others Again has shifted from stage beginning transition For focus on the problem to the European Union.Challenges to front For strategy researchers are For identify company different developing countries can discover and overcome obstacle external and internal For successful strategy design and implementation market -based (Hoskisson, Eden, Lau, and Wright, 2000).
Regulations strategic is reason main from superiority competitive sustainable.There are three explanation namely : (1) scale economy ; (2) switching costs; and (3) reputation.Third issue important For understand changes to size and segmentation in industry audits from .Testing empirical give Lots contribution For explore application theory based source Power.Related research with theory based resource will more Good If carried out on combined cross-sectional and longitudinal data (Maijoor and Witteloostuijn, 1996).
In dynamic strategy, strategies are divided into two, namely superior strategies in environment Certain For cross section events and dynamic strategies based on events logitudinal.Crosssectional problems begins with logic beginning dynamic with environment is known.The best strategy also depends on ability and behavior possibility rivals, who can also assessed through chain mark them and the driver.Ultimately strategy depends on sophisticated understanding about structure industry.The company inherited restrictive position and shape choice them, but No determine them (Porter, 1991).
Performing prospectors tall appear For build strong relationship with customer organization For develop clear understanding about their latent needs, which provide Foundation effort development the Prospector product.They motivate power sale with focus on what is produced (results ), prospectors enable troops sale them, either internal or independent, for Work with level supervision moderate (Slater and Olson, 2000).
For get desired result, more profitable Low Cost defenders appear For use system control based superior market results and performance Defender Cost Low apparently utilise compensation based commission.For Differentiated Defender, relationship sales strategy linked with profitability increase.This matter possible they For understand How they must differentiate in frame create mark superior customers (Slater and Olson, 2000).
Defender Cost Low have role important For play function sale in maintain position in different markets.This matter supported by more heavily dependent on energy internal sales and use level supervision moderate added with more emphasizes development and maintenance connection strong customers.Next, the emphasis is on relationships period long than transaction consistent individual with findings from system control based behavior and systems wages oriented compensation (Slater and Olson, 2000).
Survey For know Porter's generic strategy is used with ask the strategy used by the manager Japan in practice.Manager Japan only used the two most strategies is superiority cost comprehensive, while the second is differentiation.Not found companies that use a focus strategy There are two strategies that do not enter to in Porter's strategy but implemented in Japan namely supply chain focus and training based strategy (Allen et all., 2007) After done evaluation of Porter's model of generic strategy on base simplicity, accuracy { ie Power prediction and clarity ), and generalizationso then : (1) even though framework simple, he catch Lots complexity, (2) no fully give depiction accurate strategyperformance relationship or abilities and desires For combine superiority strategic, and (3) generalization from generic strategies questioned.In connection with simplicity, this model usually used as typology with differentiation and costs comfortable low serve as

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the label describes whole complex gestalt attributes strategic.Our research results confirm this that the model seems to fit very well For use the, namely, ia provides useful ' Abbreviations ' for describes a complex strategy.In connection with accuracy, researchers want using Porter's model is necessary be aware of two limitations potential, one about potency Strategy hybrids and others about related performance with various position strategic.While Porter is vague about issue whether and when superiority strategic will combined, our research shows that combination No only possible, but also profitable.The narrow focus apparently No become profit in reach combination differentiation with cost low and high.From the propositions we studied, the results different with some Porter on point this, and this is important problem (Miller and Dess, 1993).
Functions of Excellence Strategy compete for company No only give benefit to consumer just will but will give benefit For company Where If company have a winning strategy compete so he will survive and be able compete with other companies.Temporary for consumer presence A product can help will need so that consumer feel praised and satisfied with products offered by the company.For investors of course implementation of excellence strategies competitive Can become as reject measuring will success something business.Another thing to do noticed is Where to focus strategy ?company can realizing the strategy with truly focus in choose the market so clear share the market.Apart from that, an innovation strategy must also be implemented owned For develop product new, Growth strategy should also be owned by the perpetrators business

CONCLUSIONS
Based on description above can withdrawn a number of conclusion including : Global business can become threat at a time opportunity for company local.Local company can take advantage of it as mutual partners profitable so that capable build mutual synergy profitable ; Superiority compete company can achieved with implement the right strategy in accordance structure industry, however can also with combine between strategy and resource yeah owned by the company ; Companies can implement appropriate strategies with needs in certain countries No must copy all strategies implemented in other countries.
As for suggestions be delivered writer should done comprehensive assessment to be obtained the right picture For implementation of useful strategies for activity business in a country.For researchers Next, hopefully For can deepen study more comprehensive regarding strategy and advantages compete