Documents

Asimen Strategic Manag

Description
a strategic management paper
Categories
Published
of 17
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
    <FAKULTI > <SEMESTER / TAHUN > <KOD KURSUS> <TAJUK KURSUS> NO. MATRIKULASI : <NO MATRIKULASI> NO. KAD PENGENALAN   : <NO. KAD PENGENALAN> NO. TELEFON : <TELEFON> E-MEL : <EMEL ID> PUSAT PEMBELAJARAN : <PUSAT PEMBELAJARAN>    Table of Contents 1.0   Introduction  .................................................................................................................................. 1 1.1   Overview  ............................................................................................................................ 1 1.2   Purpose and Scope  .............................................................................................................. 2 2.0   Cost Leadership of CKS Supermarket  .......................................................................................... 3 3.0   Differentiation of Seven Eleven  ................................................................................................... 6 4.0   Focus Strategy of Bestermart Point  .............................................................................................. 9 5.0   Porter’s Five Forces Model  ........................................................................................................ 12 5.1   Bargaining Power of Buyers  ............................................................................................ 13 5.2   Bargaining Power of Suppliers  ......................................................................................... 13 5.3   Bargaining Power of Substitutes  ...................................................................................... 14 5.4   Bargaining Power of New Entrants  .................................................................................. 14 5.5   Bargaining Power of Other Rivals  ................................................................................... 14 BIBLIOGRAPHY  ................................................................................................................................. 15  BBPS4103  –   STRATEGIC MANAGEMENT 1 1 | 1.0   Introduction 1.1   Overview Competitive advantage is defined as “the ability of a firm to outperform its industry that is to earn a higher rate of profit than the industry norm ” (Besanko et al., 2006: 626). It is a situation when a firm earns a profit that exceeds the average for its industry, thus having a competitive advantage over its competitive rivals (Lamb, 1984). Therefore, firms strive to have sustainable competitive advantage through the application of business-level strategy. Business level strategy is an integrated and coordinated set of commitments and actions that the firm uses to gain a competitive advantage. This is achieved through the exploitation of core competencies in a specific product market. In selecting a business level strategy, the firm determine who it will serve (the customers), what needs those target customers have that it will satisfy (products and services) and how those needs will be satisfied (marketing). Business level strategy is also concerned with a company’s position in an industry, relative to rivals and to the five forces of competition (customers, suppliers, substitutes, competitors, new entrants). It is imperative for firms to choose an appropriate business level strategy to  position themselves favourable and to establish a competitive advantage over industry rivals. Basically, there are four business level strategies (Figure 1). Figure 1: Four Types of Business-Level Strategy  BBPS4103  –   STRATEGIC MANAGEMENT 1 2 | Firms may choose any one of the four strategies based on the source of competitive advantage i.e. the uniqueness or cost, and breadth of competitive scope either broad or narrow. A company choosing to compete across a broad market determines that it should compete in a number of customer segments. This is achieved through offer of unique products called a differentiation strategy or by establishing a low-cost position and providing standardized products at the lowest competitive price called a cost leadership strategy. In a narrow customer segment, focus strategy is employed either using a focused differentiation strategy (few segments, unique  products) or a focused cost leadership strategy (narrow segment, standardized  products at the lowest competitive price). Figure 2 presents the differences in these strategies. Figure 2: Comparison of the Four Types of Business-Level Strategy 1.2   Purpose and Scope The purpose of this paper is to discuss about business level strategy of three retailers. This paper also sh ows the use of Porter’s Five Forces Model as a means to seek the core advantages or the competitiveness in an industry.
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks