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The transformer market competition in Indonesia is getting more attractive and dynamic. This encourages transformer manufacturers to improve competitiveness, such as quality, cost, timely delivery, and service. Therefore, companies need to understand customer needs and choose the right competition strategy. There are three alternative strategies to compete, cost leadership, differentiation, and focus. This research understands the customer needs and choose the right strategy to face the competition. The design of this study used survey and data collection through questionnaires. Data analysis methods using QFD and AHP combined with Focus Group Discussion (FGD) implementation. QFD analysis results in the form of the house of quality shows two major things: recommendations action for internal improvement and priority contribution value which will be the next input analysis with AHP method. The result of AHP analysis on the priority of contribution value in choosing an alternative strategy shows that the most appropriate strategy is differentiation, with the company focus on its competitive advantage. Practical implications of this research, for the management need to increase production through efficiency and cost reduction. This research develops product development theory by digging priority customer needs as one element to determine the competition strategy.

Generating Competitive Priority Strategy in Transformer Industry