generic strategies

Assalamualaikum w.b.t

For the generic strategies, the strategies that I choose from the four categories of generic business strategies are broad differentiation strategies which is Nike.

The broad differentiation strategies approaches that Nike company use is carefully study their buyer need and behaviors,values and willingness to pay for a unique product or service. The company of Nike also incorporate features that both appeal to buyers and create a sustainably distinctive product offering. They also use higher prices to recoup differentiation costs such as they provide their product with their suitable prices and quality. As we know the product that Nike provide is always make their customer satisfied with the Nike product. The advantages of differentiation of broad differentiation strategies are it command premium prices for the firm's products. It also increased the units sales due to attractive differentiation. The brand loyalty that bond buyers to the firm's product. 

We know that Nike brand only have at certain place which is they still sustain their brand and quality. They do not distribute Nike product into some shop. Their try to maintain their quality and price with put the product at the suitable place and together with other brand. 

Differentiation enhances profitability whenever a company's product can command a sufficiently higher price or produce sufficiently greater unit sales to more than cover the added costs of achieving the differentiation. The essence of a broad differentiation strategy is to offer unique product attributes that wide range of buyers find appealing and worth paying for.

chapter 5 the five generic competitive strategies

Assalamualaikum w.b.t

This week is week 5th for us and that means we have done our 5th lecture with miss ummi. is it so fast right? i thought that i have know her about yesterday but it over a month already. 

today we have learned about the five generic competitive strategies. the five generic competitive strategies are:

1- low cost provider

2- broad differentiation

3- focused low cost

4- focused differentiation

5- best cost provider

:) a low cost advantage over rivals can translate into better profitability than rivals attain.

:) a firm's cumulative costs across its overall value chain must be lower than the competitor cumulative costs.


miss ummi also explain what is cost drivers. here, i have stated about the cost drivers that miss ummi try to make it simple to understand:

-economies scale
-learning and experience
-capacity and utilization
-supply chain and efficiencies
-input costs
-production technology and design
-communication systems and information technology
-bargaining power
-outsourcing and vertical integration
-incentive systems and culture

evaluating company's resources, capabilities and competitiveness

Assalamualaikum w.b.t . For chapter 4, at the beginning of the lecture session miss Ummi was explained about the specific indicator of strategic success which are:

-growth in firm's sales and market share

-acquisition and retention of customers

-strengthening image and reputation with customers

-increasing profit margins, net profits and ROI

-growing financial strength and credit rating

-leadership in factors relevant to market/industry success

-continuing improvement in key measures of operating performance

miss Ummi also explained about what is resources and capability of company. A resources is a productive input or competitive asset that is owned or controlled by a firm. A capability of a firm to perform some activity proficiently for example superior skills in marketing. 

the example for tangible sourcess are:

-physical resources

-financial resources

-technological assets

-organizational resources

for intangible resources are:

-human assets and intellectual capital

-brands, company image, and reputational assets

-relationships, alliances, joint ventures or partnerships

-company culture and incentive system

in that lecture, miss Ummi was exposed us with competitive advantages which is what are the things or specialty that we have and others not have it.

benchmarking is a potent tool for improving a company's awn internal activities that is based on learning how other companies perform them and borrowing their "best practices".

  

evaluating a company's external environment

for our third lecture, we have learned about evaluating a company's external environment chapter. under this chapter, we are exposed about PESTEL prinsiples. these PESTEL are related with company's external environment. here, let me explain about PESTEL one by one.

p=polotical

E=economic

S=sosiocultural

T=technological

E=environmental

L=legal and regulatory

these prinsiples are one of the effective prinsiples that company can use it for their business which always involve their rivals. here, we also exposed about 5 competitive force

1 rival

2 substitute

3 new entrance

4 buyer

5 supplier

these 5 things will make the company more be careful and alert what were they do to fulfill their customers satisfaction but in positive side, it will give the best services or product to their customers and improve to be better.