Panca Maulana Firdaus| http://hawalah.staiku.ac.id

INNOVATIVE STRATEGIES IN FACING GLOBAL MARKET DYNAMICS: A

CASE STUDY ON NATIONAL INDUSTRY

Panca Maulana Firdaus

Budi Luhur University, South Jakarta, Indonesia

Email: firdaus.p[email protected]

KEYWORDS

Strategy; Innovative;

Dynamic; Global Market

ABSTRACT

Globalization in the industrial field has encouraged the emergence of free trade

across countries Free trade is a situation in which the flow of goods, services, and

people traffic from and to a country in the world does not experience significant

obstacles. Such a situation, will pose both opportunities and threats to the

country. This opportunity is in the form of easier production goods and services to

enter foreign markets. Therefore, it is necessary to develop innovative strategies

to face the challenges of globalization. So that the country is able to strengthen its

position to take opportunities in global economic competition. The research

method used in this study is a type of descriptive research. The method used to

analyze data by describing or describing the data that has been collected as it is

without meaning to make conclusions. Descriptive research is research that seeks

to describe a symptom, an event that occurs at the present moment or an actual

problem. The results of this study show that the presence of globalization is a

necessity that cannot be avoided, along with advances in science and technology

make globalization have a considerable influence on all aspects of life. Therefore,

the next step that must be taken is to develop innovative strategies to strengthen

the country's position in the global arena from various fields. One of the fields

that has the most broad implications for the development of globalization is in the

field of national industry. Among them is the development of national industries

that focus on developing priority industries in order to meet the market.

INTRODUCTIONS

Currently, the world is facing a new era marked by the trend of globalization. There are several

factors that drive globalization, namely market drivers, cost drivers, government drivers, and

competitive drivers. Other factors that drive globalization include revolutions in information and

communication technology, globalization of markets. Global marketing is marketing activities by

(global) companies that have (global) businesses with the same marketing strategies, markets, and

products in various countries.

The phenomenon of globalization is something inevitable, something that must occur, in

addition to providing economic benefits but also brings implications to many aspects of human life,

which ultimately requires society to be able to adapt to the changes that occur. (Yuniarto, 2015).

Indirectly, the invitation to compete in the global market will increase new understanding for

business people how to advance their products to countries in the world. (Yuliaty et al., 2020).

Globalization is a challenge for all companies that want to enter the global market. Because with

globalization, companies are required to implement global marketing strategies so that they will have

an impact on competitive advantage in the local market, namely the market where the company's

products are marketed. (Hasibuan & Aslami, 2022).

A company is said to have a competitive advantage when the company has something that

competitors do not have. (Andriyanto & Nurjanah, 2016). Small and medium-sized enterprises must

have the ability to build networks to enter the global market and participate in the international

market. (Hidayanti & Alhadar, 2021). Some of the leading commodities that have great demand in the

global market are the strengths of each country. (Husnah et al., 2022).

The global economy is formed by the push of various forces including: Technological change

reflected in industrial migration/transfer from developed to developing countries. (Arifin, 2010).

Industries can no longer compete in the global market by relying solely on price or product quality,

Volume 2, Number 1, September 2023

e-ISSN: 2963-301x and p-ISSN: 2963-3435

[ Innovative Strategies in Facing Global Market Dynamics: a Case

Study on National Industry]

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http://hawalah.staiku.ac.id|Panca Maulana Firdaus

but must compete based on innovation, creativity and imagination. (Halim, 2020). Facing stronger

competition in the global market, the government needs to play a role in creating a business network

for entrepreneurs (Yulia, 2015).

In the era of globalization, more and more large-scale companies in Indonesia are competing

with each other. This trend indicates increasingly sharp competition. In a competitive business

environment, the company must have the ability to differentiate itself in the competition, in order to

maintain the survival of the company.

Therefore, the opportunities that can be done to face the challenges of globalization through

strategy are (Aryani, 2019). Strategic planning is "the one best way" to decide and implement

strategies that can improve the competitiveness of each business unit. (Julita Sari & Nurmala, 2016).

Competing requires a strategy. Each strategy is unique. There is no competition strategy, especially in

business (Pangiuk, 2018).

Today, global marketing has expanded to all countries. Many foreign goods or products are

sold in the market. On the other hand, with this global marketing, many countries feel benefited but

there are also some countries that feel disadvantaged. The benefit in this case is to get additional

income as foreign exchange. A country that cannot keep up with this globalization will result in

minuses in various fields.

Based on the phenomenon of globalization, it is important for every company to have a

strategic way of thinking, by measuring performance. The existence of performance measurement is

expected to achieve improved performance through improvements implemented. Therefore, to face

the dynamics of the global market, innovative strategies are needed, especially for the national

industry as a strengthening of the country's economy.

RESEARCH METHODS

The research method used in this research is descriptive research. Descriptive method is a

method used to analyze data by describing or describing the data that has been collected as it is

without intending to make conclusions that apply to the public or generalizations. descriptive research

is research that seeks to describe a symptom, an event that occurs at the present time or an actual

problem. This type of research is qualitative data source collection techniques literature study (library

Research). Then analyzed with the phenomena that occur at the present time. So as to get a temporary

conclusion from the problem.

RESEARCH RESULTS AND DISCUSSION

Strategy Planning

Strategic planning is a systematic process that an organization agrees upon and builds

engagement among key stakeholders-about priorities that are essential to its mission and responsive to

the operating environment. Planning (Julita Sari & Nurmala, 2016). Operationalize strategic planning

with the support of adequate production technology, top leadership commitment and active

participation from competent and professional employees. (Nawawi, 2012).

Contextually, the strategies that need to be implemented refer to global strategies (Aushafina &

Giveraldy, 2018). Strategy Planning or Strategy Management that formulates and plans strategies to

integrate quality concepts into the overall Corporate Strategy. (Ambarwati & Supardi, 2020).

Competing requires a strategy. Each strategy is unique. There is no competition strategy, especially in

economic endeavors, which is patent and can be a superior formula that suits all economic endeavors.

Because every business has different needs, goals and environment.

Therefore, each business has a different strategy in meeting its daily needs. The difference is

influenced by several factors: Market segmentation structure.Jenis usaha dan produk; Place position;

Existence of major competitors; Pricing (Pangiuk, 2018).

Strategy is a planning process carried out by a company, a person, or a leader with a number of

considerations in the form of internal and external factors in the company to achieve the desired goals

so that it can excel from its competitors. (Maulidya et al., 2016). The strategic plan aims to optimize

the achievement of the company's strategic goals and operational goals.(SANTOSO et al., 2022).

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[ Innovative Strategies in Facing Global Market Dynamics: a

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Panca Maulana Firdaus| http://hawalah.staiku.ac.id

The foregoing is intended to show that not all companies must go international but must plan

for growth and survival in an era of global competition. (Bilgies, 2017). Strategic planning begins with

environmental observation, including monitoring, evaluating and gathering information from the

external and internal environment. The goal is to identify the strategic factors that drive the

organization's future plans. (SANTOSO et al., 2022). strategic planning, strategic training and

development, strategic compensation and reward systems, strategic succession and strategic

assessment. All these functions and processes try to integrate with the strategy. (Aryani, 2019).

Every businessman wants his business to succeed and survive. There are certain tips for

businesses to survive despite the storms. Here's a strategy to keep your business afloat (Neng Frida,

2020). Yaitu antara lain:

1) Have high self-confidence and independence. Every

businessman must have high self-confidence. Every business whatever is done certainly has a

risk factor. Without high confidence the business cannot run because it does not dare to bear

all the risks. If you already have confidence, even with a small capital you can start a

business. A businessman must also have an entrepreneurial mentality and high independence

so that he is not lazy in running his business. Entrepreneurial mentality is very important,

because in running a business, of course a businessman will experience various problems, so

he is ready to fall up and down in building his business. If you don't have an entrepreneurial

mentality, you can be sure that the businessman will despair and go out of business.

2) Doing halal business, starting from capital, process, to sales. Business capital is very

important, but it must be obtained in a good way, not cheating. The process of doing business

is also carried out in good ways as well, honestly, not monopolizing, and cheating. Basically,

if you cheat, the impact is back on yourself. In addition, what is no less important is that the

goods traded are goods that are halal, good, and do not harm the human body.

3) Export and import goods. Businessmen must have a wide market share. By

Export and import goods. Businessmen must have a wide market share. By exporting and

importing goods, it means that you have expanded your market share. The wider the market

share created, the greater the sales target and the profit earned. A businessman must be

creative in finding and creating market opportunities, increasing productivity and efficiency.

4) Maintain the trust of business relations. This is very important for the back and forth of the

business being carried out. Maintain the trust of business relations by maintaining the quality

of goods and also keeping payments in accordance with the specified time. The method used

to maintain customer trust is to provide good and satisfying service. Also the goods sold are

of good quality and have no defects.

5) Promoting traded goods, namely by making advertisements both in electronic and print

media. In the current era, promotion can be done easily, namely through social media which

has a very large and broad following, can reach various parts of the world. With this

promotion, potential consumers can find out the quality, shape, and price of the commodities

offered. Promotion can attract more consumers by providing tasters and price discounts at the

beginning of product launching.

6) Doing business with basic necessities. A very promising business is the basic necessities

business. This is because basic necessities have two characteristics, namely

doing export and import activities, it means that it has expanded the Leadership. A

leader must have a leadership spirit, be easy to

ptation with others, and open to suggestions and criticism. This is for the betterment of the

business. Without good leadership a business will not be successful.

7) Suggestions and criticisms are welcome so that the business is always innovative, creative,

and flexible.

8) Using information technology in doing business. Nowadays, people are getting used to digital

consumption. With online shopping services, the community will be greatly helped, and this

is also an opportunity for business people to serve and attract as many consumers as possible.

Another strategy to pursue expansion is to introduce new items. The importance of new product

introduction can be attributed to three factors:

[ Innovative Strategies in Facing Global Market Dynamics: a Case

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a. To entertain some other untapped segments

b. To fulfill the unmet needs of consumers from some previous products or by competing products

c. As a means of customization to fit a particular market segment. In general, the product life

cycle is the driving force behind the introduction of new products. Short-lived items will be

replaced by new ones from rival companies (Maulidya et al., 2016)

. Of course, there are still many things that must be done to face global challenges, especially in

the current and future years. One of the fundamental elements of identity and existence is realized in

relevant strategic planning. Contextually, the strategies that need to be implemented refer to global

strategies, especially in the National industry.

Likewise, competitive analysis must be the core of the strategic plan. To win the competition, it

is necessary to maintain a position in the existing market with expertise that includes engineering

excellence or technical expertise or an ability to respond to changes quickly and effectively. (Arifin,

2010). While competitive advantage is the ability to produce products at low cost and quality, making

it possible to sell at competitive prices. (Swabawa et al., 2020).

Industrial development in Indonesia has made a major contribution to the national economy

ranging from production output, employment, to foreign exchange earnings. (Pujiono et al., 2018).

The challenge of global companies is to be good at strategizing in order to achieve success in

business. A good business strategy is a strategy that can produce increased "business results" such as

increasing profits, growing market share, satisfactory return on investment and others. (Arifin, 2010).

After the strategy has been carefully designed, it is only then that the container that will support

the creation of the strategy is considered. This is where the importance of the role of the

organizational structure and its staff becomes very decisive. So the mindset that strategizing first and

then the structure is formed is a new thought in the new paradigm that business people need to pay

attention to Implementation of Innovative Strategies for National Industries in Facing Global Market

Dynamics

Peter Drucker argues that innovation is a specific function of entrepreneurship, whether in

existing businesses, public service institutions, or new ventures demonstrated by a single individual.

(Bilgies, 2017). Therefore, companies must be more creative and innovative by offering products or

services that are of greater value. (Pitoy et al., 2016). This is what is demanded by the market that is

the focus or target for competition. In general, companies strive to meet consumer expectations, by

building trust in a long-term relationship between the company and its customers.

Innovation will lead to the formation of competitiveness in an industry in a particular region.

(Asmara & Rahayu, 2019). Adaptation and Innovation can actually still be applied to a variety of

conditions and different places and times as long as it is based on an understanding of the problems

felt in the perspective of consumers, including adjustments to the impact of a policy that is in effect in

order to present the ability to carry out the business activities of each industry. (Taufik et al., 2021).

In addition, production innovation drives the superiority of business competitiveness, also

determined by (agile-based management strategy); namely the application of a basic strategy of

managerial agility and agility in serving the community or consumers. (Nawawi, 2012). Companies

should strive to achieve sustainable competitive advantage which means showing the company's

efforts in the long term that are able to maintain a competitive advantage position in the industry.

(Mubarok, 2014).

Competitive advantage is the ability to produce products at low cost and quality, making it

possible to sell at competitive prices. (Swabawa et al., 2020). Increasingly high levels of innovation,

regarding the speed, availability and cost-effectiveness of international communications. All of which

need to be considered before becoming a player in the global marketplace among the forces at play.

(Arifin, 2010).

Significant economic contribution, positive business climate, up-to-date resource-based,

sustainable innovation and creativity, as well as competitive advantage and positive impact on society.

(Hidayanti & Alhadar, 2021). Innovation will have a huge advantage in global trade (Husnah et al.,

2022).

There are several objectives in global marketing in helping world trade, namely:

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[ Innovative Strategies in Facing Global Market Dynamics: a

Case Study on National Industry]

Panca Maulana Firdaus| http://hawalah.staiku.ac.id

a) Improve the Competence of Entrepreneurs

Global marketing has a goal to increase the competence or expertise of every entrepreneur to be

able to find and get various new ideas and knowledge in terms of selling their products to the public.

These competencies will be clearly visible about who are competent and less competent

entrepreneurs.

b) Survival

Another goal of global marketing is to survive and to meet the basic needs of every community.

Why? Because every entrepreneur will always be required to be able to get new ideas and innovate in

doing their marketing.

Some basic strategies include:

1) National industrial development that focuses on the development of priority industries in order to

meet the ASEAN market; industrial development in order to secure the domestic market.

Furthermore, the development of small and medium industries; human resource development and

research; and the implementation of Indonesian National Standards (SNI).

2) Agricultural development, focusing on increasing direct investment in the agricultural sector, and

improving market access.

3) Marine and fisheries development, with a focus on strengthening marine and fisheries institutions

and positions; strengthening marine and fisheries competitiveness; strengthening domestic

markets; and strengthening and improving export markets.

4) Energy development, focusing on developing the electricity sub-sector and reducing the use of

fossil energy (fuel oil); new, renewable energy and energy conservation sub-sectors; and

increasing energy and electricity supply in order to compete with countries that have better

infrastructure. (Nurhayati, 2015).

These new ideas are essential when there is no longer adequate survival in society. It's

important to note that many communities are in dire need of global marketing to survive and make a

better life.

CONCLUSION

The presence of globalization is a necessity that cannot be avoided, along with advances in

science and technology, globalization has a considerable influence in all aspects of life, both positive

and negative influences. One of the benefits of globalization is the increase in economic productivity,

which means that we can produce more with the same amount of effort.

Therefore, the next step that must be taken is to develop innovative strategies to strengthen the

country's position in the global arena from various fields. One of the fields that has the most extensive

implications for the development of globalization is the national industry. Among them is the

development of national industries that focus on the development of priority industries in order to

meet the market,

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