Assalamu’laikum
w.b.t.
In The Name
of ALLAH, The Most Beneficent and Merciful
Peace and
Blessings be Upon Prophet Muhammad s.a.w., His family and Friends
Welcome a new week for us, Alhamdulillah :D
For this
week, we have learned about which one to employ for The Five Generic
Competitive Strategies. The topic for this week is focused on Five Generic
Competitive Strategies and their functions. What they are? Let’s me explain one
by one.
THE FIVE GENERIC COMPETITIVE STRATEGIES
First of all, in employing a low-cost provider strategy, a company
much does a better job than rivals of cost-effectively managing value chain
activities and/or it must find innovative ways to eliminate or by-pass
cost-producing activities. In other words, it’s striving to achieve lower
overall costs than rivals on products that attract a broad spectrum of buyers.
Secondly, broad differentiation strategies seek to produce a
competitive edge by incorporating attributes and features that set a company’s
product/service offering apart from rivals in ways that buyers consider
valuable and worth paying for.
Focused Low-cost defined that concentrating on a
narrow buyer segment by meeting specific tastes and requirements of niche
members.
Second last of 5 generic is focused differentiation. This is concentrating on a narrow buyer
segment by meeting specific tastes and requirements of niche members.
Last but not least is Best-Cost Provider. Best-cost
provider strategies combine a strategic emphasis on low cost with a strategic
emphasis on more that minimal quality, service, features, or performance. The
aim is to create competitive advantage by giving buyers more value for the
money. It’s include Giving customers more value for the money by offering
upscale product attributes at a lower cost than rivals.
“Competitive
strategy is about being different. It means deliberately choosing to perform
activities differently or to perform different activities than rivals to
deliver a unique mix of value.”
-Michael E.
Porter
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