PAST PRESENT FUTURE SYNDICATE

Heber Manurung 29109322

Edhita Paradevi 29109324 BLUE OCEAN
Erik Sentosa 29109326 STRATEGY AT
Lea Kusumawati 29109342 HENKEL
La Ode M Arief Akbar 29109367
Pitra Adhi Pamungkas 29109380
 Case Question
• What are the competitive advantages of Henkel?

• How can Henkel build its competitive advantage?

• Explain why the products of Henkel can be

considered as having sustainable competitive
advantage?

• What are the intangible resources of Henkel?

 Case Background

Henkel market has slowed down

Raw material price has increase

Pressure to Henkel margins

One of competitor in adhesive business just about enter

with very low price

Henkel should develop a long-term strategy

 Company History

1950
• Henkel
1922 entered the
• The product cosmetics
1907 range was market with
• Persil became the extended to acquisition of
adhesive TheraChemie
pillar for the
1878 company growth
• Relocated the
company to
Dusseldorf
1876 On 2008, Henkel took over the
• Founded Adhesives and electronic Materials
by Fritz business from Akzo Nobel, previously
Henkel
owned by National Strach.
 Vision

A GLOBAL LEADER
IN BRANDS AND
TECHNOLOGIES
 Company Value

1. We put our CUSTOMERS at the center of what we do.

2. We value, challenge and reward our PEOPLE.
3. We drive excellent sustainable FINANCIAL performance.
4. We are committed to leadership in SUSTAINABILITY.
5. We build our future on our FAMILY business foundation.
Three Strategic Priorities

Achieve
our full
business
potential

WINNING
CULTURE

Focus more Strengthen

on our our global
customers team
 Resources

Tangible Intangible
Resources Resources
 Tangible Resources
Financial
• No data available
Technological
• External Thermal Insulation
Composite System
Organizational
• Each product managers built on sub-
brands with their own marketing
strategy
• Sales channel: do it yourself stores,
specialist shops, drugstore and food
retailing shops
Physical
• Relocated the company to Dusseldorf
to take advantage of logistics & better
sales opportunities.
• Took over Adhesive and Electronic
Material Business from Akzo Nobel.
 Intangible Resources
Human Innovation
• Preserve the tradition of an open • Produced ‘low dust’ and ‘light
family company. weight’ tile adhesive.
• Adding new features to improve
the product.

Reputation
• Direct contact between the
producer and client for support
product enhancement, technical
advice, addressing complaint and
warranty support.
• Brand Image
 Capabilities
Resources Rare Valuable Inimitable Nonsubstituable
Tangible
- Financial ~ ~ ~ ~
- Organizationa √ √ √ √
l
- Physical √ √ x x
- Technological ~ ~ ~ ~
Intangible
- Innovation √ √ x x
- Human x √ x x
- Reputation √ √ √ √
Core Competencies

Organizational
Resources

Reputational
Resources
 Weakness
Henkel’s Research and Development was laboratory-
driven rather than customer-driven.
Most women avoided DIY stores completely because
the brand image and product description were very
technical.
 Red Ocean vs. Blue Ocean
Red Ocean Strategy
• Compete in existing market space
• Beat the competition
• Exploit existing demand
• Make the value-cost trade-off
• Align the whole system of a firm’s
activities with its strategic choices of
differentiation of low cost
• Focuses on adapting to external trends
as they occur
Blue Ocean Strategy
• Create uncontested market space
• Make the competition irrelevant
• Create and capture untapped demand
• Break the value-cost trade-off
• Align the whole system of a firm’s
activities in pursuit of differentiation
and low cost
• Participate in shaping external trends
over time