WEEK 7 : Study Case of THE DIGITAL AGE: SHALL I TAG ALONG?

For this week, i choose to write about our case study given by Miss Ummi titles "THE DIGITAL AGE: SHALL I TAG ALONG? ". 

       Such a great case study to read because its tell us the journey of Rahim, the founder of Ambang Mata Sdn.Bhd. in manage their business and survive in publishing industry. From the stories, there's a lot of challenges faced by Rahim but he didn't give up and keep trying until he successful now. The case study also tells about how Rahim adapt with the existence of internet technology and e-marketing in the era of information and communication technology (ICT) offered opportunities and had affected the retailing marketing process and strategy including the book publishing industry. With the increasing of new competitors and other problem like failures of getting the Government tender, Rahim try to strive with various ways to ensure that his 25-year-old company will survive albeit competing in the modern technology market environment.

#we learn chapter 6 this week which is STRENGTHENING A COMPANY’S COMPETITIVE POSITION: STRATEGIC MOVES, TIMING, AND SCOPE OF OPERATIONS.

19-20 October

Program Transformasi Diri

SMK Bandar Tasik Selatan

Universiti Sains Islam Malaysia

CHAPTER 5 : THE FIVE GENERIC COMPETITIVE STRATEGIES: WHICH ONE TO EMPLOY?

Salam. Start your day with smile guys! 

What are the key factors that distinguish one strategy from another? For this topic, its focuses on the five generic competitive strategies and their functions. Let’s know further explanation about the five generic competitive functions.

For the low-cost provider like Air Asia, they are striving to achieve overall costs than rivals on products that attract a broad spectrum of buyers. And as we can see now, Air Asia services get a great response and gain greater total profits from the customers better than MAS as they offer cheaper airfares. 

Focus ;D

Secondly, broad differentiation strategies. They use higher prices and have their own brand loyalty that bonds buyers to the firm products. A uniqueness driver is a factor that can have a strong differentiating effect. Other example for this strategy is ROLEX, and HARLEY-DAVIDSON. Remember the 4 things that Broad Differentiation offer to customers that rivals cannot. Lower the buyers overall cost, tangible features, intangible features and signal the value.

Next, is Focused Strategies that divided into two approaches which are Focused Low-Cost and Focused Market Niche Strategy. Both of them is very attractive because its big enough to be profitable and the rivals have no little or no interest in the target segment. But , whatever strategies a company use, they  have their own advantages and risk. As for Focused Strategies, some of the risks is as attractiveness of the segment increases, it draws in more competitors, intensifying rivalry and splintering segment profits. Example: GAP, Porsche and Ferrari.

Main referrence .
Crafting and executing strategy

Last but not least, best cost provider. This kind of strategies is a combination of all the four other strategies above. It is a combination of Low-Cost Providers and High-End Differentiators as There is competitive space near the middle of the market for a competitor with either a medium-quality product at a below-average price or a high-quality product at an average or slightly higher price.

Happy Birthday to Hadi, Me and Sahidah. 

We're October Babies! 

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GENERIC STRATEGIES

: Place each firm you know  in one of the four categories of generic business strategies.

  What are some common features for firms you have placed within each category?

CHAPTER 4 : Evaluating A Company's Resources, Capabilities and Competitiveness.

Salam everyone!

For this week we move to chapter 4, where we are trying to evaluate how well a company’s strategy is working in terms of their resources and capabilities. How? The best indicator is the firm is achieving its stated financial and strategic objectives.  Without these 2 things, a company may fall. Other than that, we can see a company is success if there are increasing profits margins, net profit, ROI, growth in firms sales and market share and etc. Next, they also have to give more attention in controlling the resources and capabilities of a firm to perform some activity because both of them is a powerful tools for sizing up a company’s competitive assets and determining if they can support a sustainable competitive advantage over market rivals.

Shabirah trying to explain something to shima.

Besides that, a company should make their SWOT analysis in order to grab the market opportunities and external threats. Swot analysis is very important as it is a powerful tool for sizing up a firm internal strength, internal weaknesses, market opportunities and external threats. From SWOT analysis, we can match its strategy to its internal strengths and to market opportunities and also correct important weaknesses and defend it against external threats.

 In addition, we grasp how a company’s value chain activities can affect the company’s cost structure and customer value proposition. Actually, a company’s value chain identifies the primary activities and related support activities that create customer value. Example of value chain analysis is facilitates a comparison, activity-by-activity and etc. The industry is focuses on the firm’s internal, industry suppliers and channel intermediaries. From my understanding, industry value chain gives effects to end consumers, industry sales volume and customer satisfaction.

Do you know what is benchmark? It involves improving a firm’s internal activities based on learning other companies’ “best practices.” This is done in order to assess whether the cost competitiveness and effectiveness of a firm’s value chain activities are in line with its competitors’ activities. A company can get the benchmarking information in several ways like getting data from consulting firms, visits the benchmark companies and etc.

Have a nice day!