TUGAS MANAJEMEN STRATEGIK MAGISTER AKUNTANSI FAKULTAS EKONOMI UNIVERSITAS INDONESIA

ZIDNI AGNI APRIYA 1106035764

EMERGING ECONOMY COPYCATS: CAPABILITY, ENVIRONMENT, AND STRATEGY

by YADANG LUO, JINYUN SUN, and Stephanie Lu Wang Emerging economy has some company with good performance that could compete with the market leader, some example are Samsung that leapfrogged from assembler of discrete devices to major player in Dynamic Random-access Memory (DRAM), another sample is Ranbaxy from India that is now one of major Pharmaceutical company in India. Starting our discussion in Emerging Economy Copycat, we should ask what is Emerging Economy Copycats? Emerging Economy Copycat (EEC) basically any company located in emerging countries like China, India, Brazil or Indonesia that significantly mimic the market leader or pioneer in specific industry. EEC should be differs from imitator that violate the intellectual and industrial property rights. EEC mimic their pioneer in brand positioning, technology, appearance or even slogans. EEC usually starts with imitation or reverse engineering from their market leader or pioneer, developing new additional features and end up with purely new features and better idea than the pioneer itself. China Huawei, the leading telecommunication system provider and Archelor Mittal, Indias leading steel company is a few of these successful EEC. After defining what is EEC, we now move to what characteristics of EEC: 1. 2. 3. 4. 5. EEC tend to remain in pure imitation or creative imitation phase. Most EEC is Privately Owned Company, not the State Owned Company Evolutionary company that learned from their local and global competitors Possess the speed of design, time to market and adaptation ability to market Heterogeneous in the stage of development of imitation

With those characteristics of EEC, those EEC could have competitive advantages from their pioneer in these area:

Cost, EEC manages to deliver a product that cost less than the pioneer of market leader. Channel, EEC manages to open new channel to distribute their products to the market. Speed, EEC have less time to market with the use of reverse engineering their used.

How exactly EEC build their competitive advantages, we could answer those with the CHAIN Framework, framework that explain the capabilities of EEC to build their competitive advantages:

Combinative capability Page 1 of 2

TUGAS MANAJEMEN STRATEGIK MAGISTER AKUNTANSI FAKULTAS EKONOMI UNIVERSITAS INDONESIA

ZIDNI AGNI APRIYA 1106035764

Hardship-Surviving capability Absorptive capability Networking capability

Besides the capabilities EEC should posses, there are condition that need to be meet by EEC, we summarize these condition as STORM Conditions:

Social Condition Technological Condition Organizational Condition Regulatory Condition Market Condition

Successful EEC mostly apply EEC Strategies in their company by not diversified the business and focused on specific product or services. Based on our previous explanation on EEC, we now move to case studies in EEC that present 4 EEC with different industry, Animation software developer, Sports goods, Pharmaceutical and Mobile Phone.

1. Video Brinquedo, Animation software company in Brazil that utilize multiple channel to
marketing their product, which is video animation that imitate the world class animation, such as Disney of Pixar.

2. Li Ning, Sport Goods Company from China that start to imitate the slogan of major company in
the sport goods industry, later Li Ning focused on their shoes design R&D and massively marketing their products in 2008 olympics.

3. Dr. Reddys, Pharmaceutical company from India that had great reverse engineering ability
and time to market with generic drugs than the market leaders.

4. Tianyu, mobile phone company from China that manage to add some new features in their
imitation product from major market leader.

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