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Saturday, December 7, 2013

THE FIVE GENERIC COMPETITIVE STRATEGIES: WHICH ONE TO EMPLOY?

Week5:

Assalamualaikum...

So, what have I learn this week?? My beloved lecturer Miss Ummi have started the class by asking all of us that do we have an experience ride a plane?? For me.. the answer is NO..huhu but I still know that Air Asia always do lower price promotion to attract their customers. In this chapter the important thing that we must know is the five generic competitive strategies. First, about low-cost provider that is striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers. Secondly, broad differentiation that means differentiating the firm’s product offering from rivals’ with attributes that appeal to a broad spectrum of buyers. Next, is about focused low-cost strategy that concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product. Other than that, related with focused differentiation that concentrating on narrow buyer segment by meeting specific tasted and requirements of niche members. Lastly, best-cost provider that is giving customers more value for the money by offering upscale product attributes at a lower cost than rivals.

Miss Ummi also asked the student to do homework that identifies some companies that apply this five generic competitive strategies. Here is my answer:


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