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. 

Add caption

   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.

Add caption

   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 "

CHAPTER 3 : EVALUATING COMPANY’S EXTERNAL ENVIRONMENT.

 Assalamualaikum…

We meet again; today topic is how to create business strategy? Ok..what I learn from the lecture is understand the company situation first before make any decision. The first flow is thinking strategically about the external and internal environment of the business, create vision, identify promising strategic option and lastly select the best strategy to implement it in the business.

Besides that, the organization must understand about the macro environment situation as the external factor to manage organization itself. SWEET SOUR…J.   It calls as PESTEL.

Hmmm…politic factors? It can impact on many vital areas for business such as quality of the infrastructure of the economic like road system.

2^nd, economic factors? If there is higher national income growth, it may raise demand for the firm’s products.

3^th, sociocultural factors? For instance, nowadays many career women that cause a lot of boutique and instant foods.

4^th, technology factors? Can reduce cost, improve quality and lead to innovation to create new products and new process.

5^th, environment factors? Example, changes in temperature can impact the farming industries.

Lastly, legal factor like minimum wage legislation…

                                                                                     

 FIVE FORCE COMPETITION

KEY SUCCESS FACTORs (KSFs ) it can conclude that any organization have their own advantage to be success in the business. 

 hahaaaaa...too jea kot.

CHAPTER 2: THE BUSINESS VISION AND MISSION

 The organization must have a vision and mission to be more successful and develop towards on their business and the global world today. It is become the organization strategy to achieve their goals.

The short term objective becomes the vision statement of an organization. For instance, Procter & Gamble’s vision is to be, and be recognized as, the best consumer products company in the world. While, the mission statement defines as, long term objective and strategy that must be executed to achieve organization goals. When the organization create the mission statement they must alert and know about what is the organization operation and what it want to become in the future. Furthermore, the manager can arrange the business and employees according to the mission to get organization goals. The successful mission of the organization can be seen through the positive customer participation.

Another, the mission statement component can be success with the organization actions. The organization must know their focus customer, serve the products and services that customer need, use the technology like Facebook, blog or other website to introduce and sell company products and services, take a responsibility to the customers and employees condition. 

CHAPTER 1: NATURE OF STRATEGIC MANAGEMENT

Strategic management is the art of formulating, implementing and evaluating according to the decisions making to achieve the organization goals. Strategic management focus on business while strategic planning focus more on formulation. Besides that, strategic plan is the good alternatives choices from the tough managerial to improve the organization.

There are three stages of strategic management. Firstly, formulation strategy that identifies the strengths and weaknesses of an organization to develop their vision and mission. Secondly, implementation strategy or call the action stage when the organization use the formulate strategies resources to be execute. Lastly, evaluation strategy needs an organization to take corrective on their actions to be more successful.

Other than that, it is important to the organization to know about the opportunities and threats on their business area. It is can make easier to the organization to create and manage their strategies, skills and marketing process to survive on the market and develop business to the overseas. Although, the important part in the organization is a communication skill between a manager, employees and customers to know each other needs and responsibility. The manager must know about employee skills or try to solve their problem on the organization. Furthermore, the manager also can take a good idea from the employees and then make some additional changes to be one of the organization strategy. In addition, the successful organization will be done when the customer seek their needs. That’s all….hee.