4/5 Generic Strategies

السلام عليكم ورحمة الله وبركاته 

Hi to allsss...I feel like it have been sooooooo long i'm not posting anything. So, while I'm in the mood today, I better hurry up and post something before my mood leave me again..hehehe(✿^‿^)...In this entry, I"m gonna give a brief examples on 4 strategies out of The Five Generic Competitive Strategies by Michael E. Porter...

Actually, I'm quite amazed with Michael E. Porter..Most of the model that I learnt in Strategic Management are made by him..How he come up with all those model ha???So genius!!!..Masya-Allah ლ(╹◡╹ლ)...Ok cik Tkah, stop thinking about him and u better continue with ur entry..

1) Broad Cost Leadership Strategy

In my opinion Giant is one of the company that use broad cost leadership. Their target market is the middle class people and also Giant offers lower overall costs than other competitors such as Tesco, Carrefour, and Aeon Jusco. They strive to manage costs down, year after year but still offer good basic products with an economical prices and good value. They really keep align with their core concept which is 'Banyak Pilihan Harga Lebih Murah"..Apart from Mydin, my family also a regular customer of Giant..2 Thumbs up for Giant.(｡♥‿♥｡)...hehe

2) Focused Cost Leadership Strategy

IKEA that compete by following cost leadership strategies to serve narrow market niches generally target the smallest buyers in an industry (those who purchase in such small quantities as those industry-wide competitors cannot serve them at the same low cost). Global furniture retailer IKEA provide customers with “affordable solutions for better living” and they offers home furnishings that combine good design, function, and quality with low prices. IKEA does this by offering low-cost, modular furniture (assembled by customers), using self-service instead of having sales associates follow and pressure customers to buy. IKEA displays its products in room-like settings so that customer can view different combinations of furniture, eliminating the need for assistance from sales associates or decorators to visualize the setting and reducing employee costs. As for me, I never shop in IKEA but once I have my own house later, I want to buy some of IKEA products to be put in my house.. Insha Allah~

3) Focused Differentiation Strategy

Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from mini vehicles to large trucks, and even new concept cars, each tailored to different price ranges. The key part of Toyota's differentiation strategy is the fact that the company was able to produce vehicles for many different market segments and price ranges. Toyota has a strong commitment to diversity. They understands that to continue to be successful in this day and age they must take further steps to diversify their company. 

4)Broad Differentiation Strategy

Aside from foot wear, the company boasts of products such as clothing, equipment, and even accessories. This creates the value that people are looking for in their sporting good needs.  People will pay the difference in price just to have the Nike Logo on their clothes and accessories.  The premium cost makes gives fans the the opportunity to feel like the superstars in all the different sports by wearing the same brand that the star wear such as Michael Jordan. Diversification is the key which creates the value that Nike wants its customers to have.The differentiation is designed to coerce customers that Nike’s shoes are not only superior but also a high fashion statement which is a necessary part of a lifestyle based on athletic or sporting interests

ok..sharing session for this entry has over..kindly wait for my new entry next week k~
till then.wassalam~~

~May ALLAH bless us all today and always~

Competitive Advantages~S.W.O.T~Value Chain

Assalamualaikum to all readers...(like I have lot of readers here..perasan..kekeke)

If u are notice, i'm writing in broken-english sentences. so, what post is it?? strategic management sharing moment tyme!!~~hehe

Ok, before this I have share on how to evaluate the external environment of a company, but now we gonna take a mini tour into the company's internal(resources, capabilities and competitiveness) environment chapter.In this post, I'm gonna touch on 3 main points which are:

1) the resources and capabilities of a company

2) SWOT analysis

3) the value chain system

ok, let's start our mini tour~~

Based on the picture, we can say that resources is the assets that is owned and controlled by the company. & what is capabilities? It is how the company utilizing or handling the resources that they have to perform their activities.The picture show us the interrelation between the resources, capabilities and how this two factors create competitive advantages.If the company have a strong resources but no competitive capabilities or if they have a strong resources but no skillful capabilities the company cannot create competitive advantages over other company. Bear in mind, Resource strengths and competitive capabilities are competitive assets ! We can use VRIN test to check the sustainable competitive advantage of a resources which are V= valuable, R=rare, I=inimitable, N=non-substitutable.

S.W.O.T analysis is widely used by company out there to assess their company competitiveness in the market. Strength of a company is the skills and services that a company offer, that others don't, while Weaknessess is the skills and services that others offer but the company don't. Opportunities refer to the chances that the market offers, and that the company can use for the benefits for the company, while Threats are the possible market dangers that can threaten the balance and goals of a company.

The value chain of a company shows the linked set of activities, functions, and business processes that it performs in the course of designing, producing, marketing, delivering, and supporting its product / service and thereby creating value for its customers. basically, value chain is consist of 2 types of xtvts which are primary xtvts (where most of the value for customers is created) and secondary xtvts (undertaken xtvts to assist the individuals or groups engaged in the primary xtvts).

E.g on Agriculture Industry value chain

I think that's all for this entry..till then guys..wassalam~

~may ALLAH bless us all today and always~