My Fifth CLAss ;)

Assalamualaikum and hye everyone ;)

What you all doing right now?? Hope everyone always be happy for whatever u are doing and everything because of HIM. Remember to always ‘renew’ our intention. J As human being, sometime we don’t realize that our intention because of something else. Sometime we are forgot everything just for HIM, ONLY HIM. 

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       Emmm, OKAYHHH !!! I’M Just continue what I’m going to tell all of you about my INTERESTING CLASS with MISS UMMI J.. hikhikhik. For this week, i learned in chapter 5, THE FIVE GENERIC COMPETITIVE STRATEGIES. As good companies, they must know how to deal with the competitive strategy because a company’s competitive strategy deals exclusively with the specifics of management’s game plan for competing successfully. Its specific efforts to please customers, strengthen its market position, counter the maneuvers of rivals, respond to shifting market conditions, and achieve a particular kind of competitive advantage.

 

    The five generic competitive strategies are low-cost provider strategy, a broad differentiation strategy, a focused low-cost strategy, a focused differentiation strategy, and a best-cost provider strategy. Then, the best-cost provider strategy included the four items of competitive strategies.

          The one of the five generic competitive strategies is the LOW-COST PROVIDER STRATEGIES. But what is the objective ??  The low-cost provider strategies are striving to achieve lower overall costs than rivals on comparable products that attract a broad spectrum of buyers. A company achieves low-cost leadership when it becomes the industry’s lower-cost provider rather than just being one of perhaps several competitors with comparatively low costs. A company has two options for translating a low-cost advantage over rivals into attractive profits performance. 

          Firstly, to use the lower-cost edge to underprice competitors and attract price-sensitive buyers in great enough numbers to increase total profits. Secondly, to maintain the present price, be content with the present market share, and use the lower–cost edge to earn a higher profit margin on each unit sold, thereby raising the firm’s total profits and overall return on investment.

           Then, there are two major avenues for achieving a Cos Advantage which are perform value chain attractive more cost-effectively than rivals and revamp the firm’s overall value chain to eliminate or bypass some cost-producing activities. The company should alert on cost drivers that are the KEYS to Driving DOWN COMPANY COSTS which are economics of scale, learning and experience, capacity utilization, supply chain efficiencies, input costs, production technology and design, communication systems and information technology, bargaining power, outsourcing or vertical integration, and incentive systems and culture.

        BUT!!! The company must avoid a pitfall in pursuing a Low-Cost Provider Strategy. There are three pitfalls to avoid such as getting carried away with overly aggressive price cutting and ending up with lower, rather than higher, profitability. A second big pitfall is relying on an approach to reduce costs that can be easily copied by rivals. A third pitfall is becoming too fixated on cost reduction.   

      Besides that, the other Best Cost Strategy is BROAD DIFFERENTATION STRATEGIES. The essence of a broad differentiation strategy is too offer unique product attributes that a wide range of buyers find appealing and worth paying for. The example successful differentiation are command a premium price for its product, increase unit sales and gain buyer loyalty to its brand. Rememeber !!! Company differentiation strategies fail when buyers don’t value the brand’s uniqueness sufficiently and/or when a company approach to differentiation is easily matched by its rivals.

      The most systematic approach that managers can take is focusing on the UNIQUENESS DRIVERS that are the KEYS to CREATING a DIFFERENTATION ADVANTAGE. The examples of uniqueness drivers are striving to create superior product features, design and performance, improving customer service or adding additional services, pursuing production R&D activities, striving for innovation and technological advances, pursuing continuous quality improvement, increasing emphasis on marketing and brand-building activities, seeking out high-quality inputs and emphasizing human resources management activities that improve the skills,expertise, and knowledge of company personnel.   

     In pursuing broad differentiation strategies, there are also having a pitfalls and the company MUST AVOID ITS!!! Firstly, a differentiation keyed to product or service attributes that are easily and quickly copied is always doomed. A second pitfall is that the company’s attempt at differentiation produces and unenthusiastic response on the part of buyers. The third big pitfall is overspending on efforts to differentiation the company’s product offering, thus eroding profitability.

       Furthermore, FOCUSED (OR MARKET NICHE) STRATEGIES. It defined by geographic uniqueness, by specialized requirements in using the product, or by special product attributes that appeal only to niche members. There are two strategies focused by market niche which are low cost strategy and differentiation strategy.

        A focused on low-cost strategy by aim at securing a competitive advantage by serving buyers in the target market niche at a lower cost and lower price than those of rival competitors. The firm can lower costs significantly by limiting its customer base to a well-defined buyer segment. It also keeping the costs of value chain activities contained to a bare minimum and search for innovative ways to bypass nonessential activities. Producers of private-label goods are able to achieve low costs in product development, marketing, distribution, and advertising by concentrating on making generic items imitative of name-brand merchandise and selling directly to retail chains wanting a low-priced store brand.

        Secondly, a focused on differentiation strategy. It keyed to offering products or services designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers. It depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm’s ability to stand apart from rivals competing in the same target market niche.

     

        But, as usual every strategy has a risk included the low-cost and differentiation strategy. One of the risks is the chance that competitors will find effective ways to match the focused firm’s capabilities in serving the target niche. Secondly, the risk related to the employing which is the potential and needs of niche members to shift over time toward the product attributes desired by the majority of buyers.

           Lastly, the main strategy is the BEST-COST PROVIDER STRATEGIES. It stake out a middle ground between pursuing a low-cost advantage and a differentiation advantage, and between appealing to the broad market as a whole and a narrow market niche. The CORE CONCEPT is best-cost provider strategies are a HYBRID OF LOW-COST PROVIDER AND DIFFERENTIATION THAT AIM AT PROVIDING DESIRED QUALITY/FEATURES/PERFORMANCE/SERVICE ATTRIBUTES WHILE BEATING RIVALS ON PRICE. It be very successful in market when product differentiation is the norm and an attractively large number of value-conscious buyers can be induced to purchase midrange products rather than cheap, basic products or expensive top-of-the-line products.

       I think I already explained in a VERY LOOOONGGG sentences

. Uhuhuhu, hope you ALL understand my explanation ;) see u all again ya^^

assalamualaikum…

         

      

my FOURTH CLASS ;)

Assalamualaikum and hye everyone :)


       As you know, today in the morning at 8. am, i have my strategy management lecture. U all do not know right, where was my lecture be held :) emmmm, my lecture be held at hall DKF1.2 . Without realize, the time is running quickly. In this week, i actually already learned in chapter FOUR. When MISS UMMI said '' you had learned until chapter 4 right ?so, we will make a quiz. i'm just like wake up from a long sleep..emm, there are some word from ISLAMIC SCHOLAR :



     So, today i learned in the chapter FOUR, A COMPANY RESOURCES,CAPABILITIES, AND COMPETITIVENESS. As usual, there was a small topics under it.
          
          You know, the book that i'm being used for this subject is very interesting because every small topics, there was an equation in the small topics as initially to introduce what the BIG TOPIC about. 

          The first subtopic is about how well is the company's present strategy woow well the company stack up against rivals. All this specific indicator are important for evaluate how well a company's strategy is working and weather success or not. So, the stronger a company's current overall performance, the more likely it has a well-conceive, well executed strategy. Then, for the key financial ratios, the higher the amount or result, the good they are for company's strategy and condition. It also erking, weather the company is successful using it by evaluate based on sales,firms's image and reputation, profit margin, net profit, return on investment, financial strength, credit rating operating performance and hxplain about competitive advantage on a company. What is the competitive advantage ? In simple word, when a company has factors that are cannot be copy by other company, and then the factor made the company as the competitive advantage. The company can stand for long time in the market as long as the factor been save and secret from other company. It also related with casual ambiguity which is another company did not know the resources used by the company.

       Besides, the second subtopic is about ‘what are the company’s competitively important resources and capabilities’. The resources can be divided into two main categories which are tangible and intangible. The capability is defined as the capability of the company to utilize the resources efficiently. Of course, as the good company, it should have a strong capability to perform some internal activity competently. But, the company’s resources and capability must be managed dynamically in order to sustain competitiveness and help drive improvement in its performance.

       Moreover, the third question is the company the company able to seize the market opportunities and nullify external threats. Before the company takes a solution, the company should know the company’s opportunities and the external threat by using the SWOT ANALYSIS. The SWOT analysis is simple but POWERFUL TOOL. It is includes the strength, weaknesses, threat and opportunities.

        The last question in the subtopics is about are the company cost structure and the CUSTOMER VALUE PROPOSITION competitive. In the company value chain, there have primary activities and cost, and also a support activities and costs. The primary activities and costs is supply chain management, operation, distribution, sales and marketing, service and profit margin. All the activities and costs are really important and the key for the company to successful.

             I think that’s all for today lecture. J
ThANK YOU FOR ‘BORROW’ UR EYES FOR AWHILE. Barakallahufikum, assalamualaikum J

my THIRD CLASS :)

      Assalamualaikum and Hye EVERYONE ;)

   

               How are you feeling today? I hope everyone always be happy. How about me ? I’m good and feel happy today :)BECAUSE I CAN COMPLETE MY WORK AS FAST AS I CAN. i'm sorry for the late entry post because i just got my laptop in this week, and ALHAMDULILLAH, now i can post my entry.. Emm, okay actually I want to tell all of you about my third lecture in a Strategic Management subject. As usual, my lecture started at 8.am and be ended at 10a.m.

               

               
              
              Before MISS UMMI started a lecture, she asking my friends and I about the current issue, WHAT IS THE CURRENT ISSUE?? Everyone started talking and one of us told that the current issue is about the increasing price in sugar. Miss UMMI smile and she told that the current issue is about CHIN PENG, who was one of the communism. He already dead and our PRIME MINISTER, DATO SRI NAJIB did not give his permission when they want to bring back the CHENG PENG to Malaysia and buried him here. Our prime minister claim that Chin Peng as a terrorist which is ‘pengkianat’ to MALAYSIA and he do not deserve to be in Malaysia although he already dead.

                                                                       ( chin peng )

            Then, MISS UMMI asking us weather the Chin Peng is really terrorist or in an easy term is very bad people who kill Malaysian and doing the other bad things?? Everyone just look at her, and we try answered her question; we said that Chin Peng is a terrorist. Miss Ummi explained that actually Chin Peng is not a terrorist. He is not a bad guy. He just a person who want to help our country got a freedom from the BRITISH. That’s means he is not a terrorist and a GOOD PERSON.   
    

        Seriously, before this, I just know that Chin Peng is not a good person but in a reality he’s NOT!!! . :( I’m sad … Based on my study in history subject when I’m form 5. What the saddest thing when I realized that there are a lot of ‘conspiracy’ or ‘lying story’ in our history text book in a secondary school. Miss ummi advise us to read more and more in a many view, also do not close our mind by just read the one side only.

       After we discuss about the current issued, we started our lecture. The chapter two is about Evaluating Company’s External Environment. In the lecture, I got some of the important term about the company’s external environment. There are six component of micro environment which are political factors, economic conditions, sociocultural forces, environment forces and legal and regulatory factors. I’m also learned a new term in a strategic management, one of them is bargaining power. Do you want to know what the bargain power is?? I’m sure you all curious right?? :) Bargaining power refer to when the supplier is increase the bargaining power is high. This term also applied on buyers.

           

             

        Besides that, there are five competitors’ forces in company’s external environment. It is include the rival, buyers, substitutes, new entrance and supplier. The examples of rival in term the production of car are Proton, Toyota, Hyundai and Audi. The public transports and motorcycle is the example of the substitute by the car. Other than that, the tire and engine is the example of the suppliers. You know, MISS also showed us some of the video related to our discussion to ensure that we will really understand. The videos make me more understand and the more ‘important’ thing is prevent me from sleepy (hehehe). 

I think that’s all I can learn from my today lecture.  Hope we meet again YA , ASSALAMUALAIKUM… :)