GENERIC STRATEGY

Broad cost-leadership

This generic strategy compete to serve their customer with lower price than other rivals. The business targets are broad, serving the customers with low profit per unit, and offer many kinds of products or services.

• Air Asia
• Tesco
• Mydin
• Giant
• McDonald
• Google
• Coca Cola
• Proton

common features in these product :

1. Many kinds of products and/or services
2. Offering the lowest price to compete with rivals
3. attract a broad spectrum of buyers

Focused cost-leadership

This generic strategy concentrate on a narrow buyer segment and outcompeting rivals on costs thus being able to serve niche members at a lower price. They may serve one kind of service or product.

• Perodua
• Digi
• Kamdar
• KFC
• Subway

 common features in these product :

1. Focusing on their own product or service.
2. available to a specific group of people

Broad Differentiation

This generic strategy aim to serve many people with various types of product or services to differentiate the company product offering from rivals and appeal to a broad spectrum of buyers 

All of these are offering many kinds of products or services in their industry. They sell at reasonable prices providing variety of products and services according to the customers’ needs and wants.

• Malaysia Airlines;
• Honda
• IKEA
• Kia Motor
• Avon
• Old-Town Kopitiam
• Toyota
• Rolls Royce
• Al-Ikhsan 

common features in these product :

1. Many kind of products
2. Different types of products and services.
3. Targeting a broad market target.

Focused Differentiation

Concentrating on a narrow buyer segment and outcompeting rivals with a product offering that meets the specific tastes and requirement of niche members better than the product offerings of rivals.

• Bonia
• JW Marriot
• Louis Vuitton
• Porsche

common features in these product :

         I.                                I.            Luxury product offer

                  II.            Focusing on a narrow target market

                III.            Exclusiveness styles

                IV.            High price

WEEK 7: STRENGTHENING A COMPANY’S COMPETITIVE POSITION

  In this chapter I learn about offense and defense strategy of the business. Offense refers to the business that exploits competitor weaknesses to get a better chance to success. There are special kinds of offensive which is blue ocean strategy that offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand. 

   While, defense means the business that introduce new features, new models and broaden its product line to close off their weaknesses.

    Another thing, it is important to the business to be aware of the nature of first-mover advantages and disadvantages, because competitive advantages can spring from when a move is made as well as from what move is made. For instance, panadol have a copyright for 20 years, so in that time other competitor cannot copy the product and it can sell for a high price. 

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   In addition, outsourcing strategies define a narrow scope of business operation.  For example, focus on product, service and consultancies. Then, join venture (JV) as a partnership strategy that sharing in its revenues and expenses. 

WEEK 5: THE 5 GENERIC COMPETITIVE STRATEGIES: WHICH ONE TO EMPLOY?

 Firstly, I learn about two key factors that make the strategy different from another. (1) Market target broad or narrow? (2) Competitive advantage pursued linked to low costs or product differentiation?

THE FIVE GENERIC

COMPETITIVE STRATEGIES

Low costs provider strategy: (attract a broad spectrum of buyers) achieve lower overall costs than rivals on comparable product.	Focused low costs strategy: (narrow buyer segment) and outcompeting rivals on costs.
Broad differentiation strategy: (attract a broad spectrum of buyers) differentiate the company’s product offering than rivals’.	Focused differentiation strategy: (narrow buyer segment) and outcompeting rivals with a product offering.
Best costs provider strategy : giving customer more value for their money by satisfying buyers’ expectations (quality, features, performance, service)

Cost drivers: key to driving down company costs.

1.       Learning and experience. Ex: employ skill worker to produce more product.

2.       Input costs. Ex: use cheaper raw material.

3.       Production technology design. Ex: using new technology to increase production.

4.       Supply chain efficiencies. Ex: when we have good supply it is important to create good relationship with them.

5.       Incentive system and culture. Ex: give incentive to the employee or workforce to sustain them on the organization. 

Uniqueness drivers: key to creating a differentiation advantages.

1.       Product features and performance.

2.       Customer services.

3.       Production R & D.

4.       Technology and innovation.

5.       Employee skill, training and experience.

6.       Sales and marketing.

7.       Quality control processes.

8.       Input quality.

      In addition, there are two main risks of a focused low cost or focused differentiation strategy. First, the chance that competitor will find another way to create a similar products or services or prices in serving the narrow buyer segment. Second, the potential of the preferences and needs of narrow buyer segment to shift toward the product desired by the majority of buyers.

CHAPTER 4: EVALUATING A COMPANY'S RESOURCES, CAPABILITY & COMPETITIVENESS

   This week I learn about the business strategy. How we manage the business to achieve goals? haa, mai nk oyk...we must improve the product design, lower price with a high quality, do more marketing process, use skill workers and so on.

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   In addition, the organization must properly use the two main company resources, call as tangible and intangible resources.

1. tangible eg :  equipment, manufacturing resources.

2. intangible eg : brands, image, reputation assets.

  

 Furthermore, identify the company SWOT analysis is important to compete with other company in the market. For instance, if the workers are lack of skill, company can send them to any seminar related with their courses to encourage and give them more knowledge. 

  

 Lastly, I want to share about the concept of a company value chain that is a combination between the primary activities and support activities.

1. primary act is creating value for customer.

    eg : (at the hotel) check-in & check-out, housekeeping, room services.

2. support act is enhance the performance of the primary act.

    eg : trainning hotel staff.

*benchmarking : learnng how other companies perform and borrowing their " best practices "