السلام عليكم ورحمة الله وبركاته
Salam sayyidul ayyam to all readers.. I think
it is quite a while I did not post anything n it is ofcos la bcoz of my
laziness meter is rising up until 100%..hehe..
Ok, let’s continue with our delayed
strategic management sharing session.. in the last post, I have given u all some
company example dat implemented the 5 generic competitive strategies..have u read?
Read it before u continue with this post, pleassssseee.. ٩(̾●̮̮̃̾•̃̾)۶ hehe
So, today, lets we go go go to the other topic on how to strengthening a company’s competitive position.
Once a company have settled down on which
of the 5 generic strategies that the company want to use, they need to think on
what other strategic actions they need to employ to complement on its
strategies and strengthening its overall strategy.
What I can summarize from Dr. Ummi’s
lecture, the company need to focus on 3 aspects..The strategic moves, The timing and last the scope of operations.
First, the strategic moves. They need to
learn whether they need to pursue offensive or defensive strategic moves. The company
should choose which one they want to employ based on the current market
situation and the opportunities that they can spot on that time. If the company
has the greatest competitive advantages over the targeted rival, the company is
more likely to apply the offensive strategy. But, in order to apply offensive
strategy the company should know which rivals to attack. If the company
challenge a rival on a ground where the rivals are stronger, the company will
struggle to survive. E.g of offensive strategy is the blue-ocean
strategy. While if the company go into defensive strategy mode, the
company need to take actions on how to
block all the rivals attack and also by giving signals to the rivals that if
they still want to battle with the company, the cost will be more than its
worth. This is likely either to discourage the rivals from attack at all or
divert them to attack other less threatening company.
Second, the timing. When to make strategic
move is as crucial as what strategy move to make. The company can choose
whether to be a first-mover or late mover in the market. Both of these options
have their own advantages and disadvantages. So, the company manager needs to carefully
consider the pros and cons of the two options. The timing of strategy move can
be one of competitive advantage for the company.so, to all the company managers
…tik tok tik tok…choose wisely ok.
Third, the scope of operations. The scope
of the firm refers to the range of xtvt which the performs internally, the
breadth of its product and service offerings, the extent of its geographic
market presence, and its mix of business. They can choose whether they want to
xpand their scope horizontally (more broadly within their focal market) or vertically
(up & down the value chain system from raw materials until sale and
services to the end consumer). To xpand horizontally means by doing horizontal
mergers or acquisitions. To go vertically is by doing vertical integration. Vertical
integration can be done by doing forward or backward integration. Contrast to vertical
integration strategy, the company also can do outsourcing. In current market, outsourcing
is applied by many companies. Outsourcing is when the company choose to not
perform certain value chain xtvt and let the outsiders’ specialist to do it.
Apart from all the strategies above, the
company also have another option which is to do strategic alliances and
partnerships. Strategic alliances is an agreement between 2 separate companies
to work cooperatively in a certain project. Joint venture is an example of
strategic alliances.
Alhamdulillah, another chapter has finished…hehe..thats all for this entry.wassalam~
MAY ALLAH BLESS US ALL TODAY AND ALWAYS
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