1. A game theory approach to tailor a competitive strategy for a developing rolling stock manufacturer in South East Asia.
- Author
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Kharisma, Bedy, Caesarendra, Wahyu, Brajawidagda, Uuf, Abdillah, Muhammad, Zaini, Juliana, and Sukoroto
- Subjects
ROLLING stock ,DIESEL multiple units ,GAME theory ,HERFINDAHL-Hirschman index ,MANUFACTURING industries ,MARKET share - Abstract
A company has to address its position within its industry. It is crucial to know and to recognize what the competitors did and which strategy works best to win the market share. Therefore tailoring a competitive strategy is vital; hence it has to be tailored specifically for each product and market condition. Thus making it more critical for developing industry in ASEAN, the purpose of this paper is to recognize a competitive strategy for a developing rolling stock manufacturer in South East Asia. In creating a competitive strategy, we propose a game theory approach. An industry analysis among rivals must be done first using the Hirschman Herfindahl Index (HHI) for a specific product, Diesel Multiple Unit (DMU). Based on the HHI calculation, the DMU market rivalry often falls into a Dominant Firm category. This finding is interesting because there are a few number of dominant players in the same strategic market. Once the rivalry within the industry is known, using historical data gathered between dominant players, what strategy they execute, and seeing the differences they make on how much payoff gained utilizing the strategy; a game matrix is then deployed between players in the market. The result shows that the Indonesian Railway Industry has successfully increased its market share by reducing costs and shortening delivery time. Though it seems general, an interesting finding shows that it still has room to opt for the strategy to increase the price and lengthen the delivery time by focusing on quality and still win the market share. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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