DURING the decades of customers in Indonesia have been chained by the paradigm of good quality if you want to then have to pay dearly. Conversely, if the customers buy products worth cheap do not expect will be of good quality.
The original paradigm is still gripping the minds of the majority of customers in Indonesia in consuming this product or service to meet his needs, either primary or secondary nature.
However, the influx of Chinese products along with the opening tap import into the domestic market has been gradually undermine the presumption "of good quality should be expensive". There have been many Chinese products that offer new value to customers in Indonesia-"good quality and low cost".
First products of this kind are booed. But slow-time turned out this kind of products were dominating the market in Indonesia. In the world of communications, call it Nexian, Huawai, a selling price membandrol ZTE below Rp1 million. This is undermining the dominance of Nokia, which membandrol prices are always on top of RP1 million.
Lower middle market
The advent of cheap products, but quality is effected by the thought of professor Columbia University, CK Prahalad. In The book The Fortune at The Bottom of the Pyramid, Eradicating Poverty Through Profits, he mentions:
Knowledge-based economy a fair and economic growth will be driven by the concept and strategy of the industry that gives opportunity to the General middle income under potential as producers and consumers, because of the very large number (65 per cent of the total world population).
The industrialist, businessmen and economists thought that embodies the Chinese by producing goods or services at their best and cheapest cheapness to his needs in the majority of middle income.
In addition, it is also exported to other countries as Indonesia is no exception. This phenomenon occurs due to China's corpora do innovation process that is open and without limits on the functions of research and development, operational processes and the production, processing and other services. This has not been done to Western companies.
The Chinese nation has given global studies about the benefits of low-cost companies. With this model, China has given birth to many quality products, even beyond the products of Western countries but still valuable.
Before China, innovation process that produces low price has been shown by Toyota Toyota Production model System (TPS). This Model is the innovation process on the lines of operations and production. As a result, Toyota's products, but still affordable with reliable quality.
New markets and low cost company
SWA magazine survey ever ask a fundamental question: How CEO solutions strategically in the face of consumer purchasing power declined in the coming period due to the global economic crisis.
There are two answers are most dominant. As much as 70,59% CEOs answer looking for new markets and provide products including 52,94 percent at affordable prices.
Looking for new customers, meaning the company has to open a relationship with prospective customers or consumers to obtain new opportunities. This requires the company to be able to get creative and create new values are worth the benefits of the products and services offered to customers.
Instead, at an affordable price, meaning the company would have to do an open innovation process and without limit in the company, both on the operating functions, production, and service in order to lower the costs so that the product is finally reached by the purchasing power of customers.
CK Prahald in the magazine the ECONOMIST, again warned that if companies want to still exist in the midst of tough competition in the global economic crisis with just one path, which makes the products of good quality and sold at affordable prices.
The main requirement to conduct internal process innovation is the clarity of the process from the top level down to the lower floor. From the CEO down to the janitors. So the company should have a map, the map process and operational business process map, the map process and operational business processes that integrate both internal and external suppliers.
Of course this should be supported with a willingness and seriousness the stakeholders in a formal attachment to the refinement and improvement of processes as well as the activity of the company continuously as part of the work of the innovation process.
All of this is so that the company can sustainable competitive power so that the company is capable of positioning as a low-cost company who has become the main wishes of customers currently on the market medium.
Nawolo Tris Sampurno
Learning Manager & Alomet Friends
WWW.alomet.net
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Finance; Investment; Business; Economics
Finance; Investment; Business; Economics
