* Identify the generic strategy adopted by a product or division of your firm and also a major competitor. Attempt to justify your answer by comparing with the industry average benchmarks (Price and Cost data). * Draw a value chain of your firm‚ mentioning key points of functional fit/ misfit with the above generic strategy. E.g. how will Operations /marketing support the identified strategy. Make recommendations for any change needed. ------------------------------------------------- 1a
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Business Generic A firm positions itself by leveraging its strengths. Michael Porter has argues that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation which are applied at the business unit level. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them‚ lead to three generic strategies for achieving above average performance in an industry: cost leadership‚ differentiation‚ and focus
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you all know‚ MAS and AirAsia now are fighting over who has the best and cheapest campaign. Everyday we can see on newspaper MAS offering flying to various locations at RM0. The next days AirAsia shoot back with other location with free seats or 99 cents fares. AirAsia flight offers out with a special promotion Now Everyone Can Fly n 2010. AirAsia also offer flight and tour packages.. The price of flight fares between MAS and AirAsia‚ AirAsia is cheaper than MAS. AirAsia wants to be the lowest
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Section 6 Lecture Notes for Chapter 5 369 Chapter Chapter Summary 5 The Five Generic Competitive Strategies Chapter Five describes the five basic competitive strategy options – which of the five to employ is a company’s first and foremost choice in crafting overall strategy and beginning its quest for competitive advantage. Lecture Outline I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage‚ but they all involve giving buyers what
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any differences between them: (a) Porter’s Generic Strategies (b) The Strategy Clock Purpose of Porter’s Generic Strategies and Bowman’s Strategic Clock are both aimed to help companies understand how they compete in the marketplace. Base on the different combinations of price and perceived value‚ companies should know how to choose a position of competitive advantage that understanding the company’s competencies. Application of Generic Strategies is focus on three ways in which a company could
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development of AirAsia Malaysia from 2005 to 2008 and builds on a prior case‚ ‘AirAsia: The Sky’s the Limit’. Within only four years‚ AirAsia managed to expand its operations into another ten countries. In addition‚ through its associate company AsiaX‚ it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. The article documents AirAsia’s marketing strategy and discusses its approach towards ‘market development’ and ‘product development’. The Blue Ocean Strategy concept
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factors that influence an organization’s decision making‚ and affect its performance and strategies. Now‚ i am going to analyse company’s position by using PESTLE and porter’s 5 Forces. Pestle Analysis: This is mainly used to analyse the wider macro environment in which the business operates. The organisation normally have no control over PESTLE factors and at best should try to accommodate and device strategies around these factors or issues. Political factors: The political environment in EU has
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Case: The ascendance of AirAsia 1. What is the macro and industry environment for new budget airlines in the Asia- Pacific region? What opportunities and challenges are associated with that environment? People in the Southeast Asian have low average incomes. The low average incomes should boost the cheap fares demands. In recent years‚ because of the government decreased the entry barrier of airline industry‚ more and more carriers entered the airline market
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Assignment 1 Strategy The article I read was‚ What is Strategy? By Michael Porter. In this article Porter talks about the abilities to set objectives‚ facilitate resources and the ability to target the right customers. Porter goes onto talk about operational efficiency. He says that operational efficiency is basically preforming similar tasks better than your rivals in the market. He emphases being different than your rival‚ don’t try to be better and always out do them‚ be different and unique
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CAEA 3301 AIRASIA BERHAD DATE OF SUBMISSION: 2 APRIL 2008 QUESTION 1 COMPANY BACKGROUND AirAsia is one of the businesses that have successfully adopted cost leadership through operational effectiveness and efficiency. The cost advantages have enabled AirAsia to become the Asia’s leading low fare airline. Established on 12 December 2001‚ AirAsia has been such a big phenomenon in airline industry especially in Asia. By using a simple but strong slogan “Now Everyone Can Fly”‚ AirAsia has successfully
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