The Influence of Strategic Alliance on Competitive Advantage through Market Area and Product Innovation

Abstract

This study is aimed to prove the implementation of strategic alliance can increasing competitive advantage of wood industry of Perhutani through develop of market area and market innovation. Based on the results of hypothesis testing and the analysis of strategic alliances, market area and product innovation against competitive advantage, it is known that building a competitive advantage in the timber industry forestry can be achieved through the establishment of strategic alliances right, based on the exchange of raw material resources, technology or resources marketing. Strategic alliances are used to strengthen the position of the timber industry in the face of competition forestry business. The more precise the model selection strategic alliance Perhutani timber industry will be able to build competitive advantage of her. The development model of strategic alliances Perhutani timber industry that needs to be developed is to increase the competitive advantage has the form of an alliance focused on cooperation in provision of raw materials, interest in improving the skills of cooperation and the application of the production process technology.