Company with five generic competitive strategies…

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-professor and Cofounder of monitor consulting.

Agree with his statement? Yes, I am...Actually, being different from other is good for company. It’s because the different can change to the unique value than rival do. Sometime people also have more intention to the uniqueness. So what is it actually means by competitive generic strategies?? Let’s take a look J

This note I will briefly explain about what means by generic competitive strategies. According to the book of crafting and executing strategy by Thompson, Peteraf, Gamble and Strickland; a company competitive strategy deals exclusively with the specific of management’s game plan for competing successfully. Its specific efforts to please customers, strengthen its market position, counter the maneuvers of rivals, respond to shifting market conditions, and achieve a particular kind of competitive advantages. There are five factors to raise competitive strategy options;

1. A low-cost provider strategy
2. A broad differentiation strategy
3. A focused low-cost strategy
4. A focused differentiation strategy
5. A best-cost provider strategy

As an example that company has generic competitive strategies is Air Asia. Why I said Air Asia, it’s because compare Malaysia Airline System (MAS), Air Asia offer their customer to use their airline services with low cost. Thus, it’s matching with their tagline that ‘Now, everyone can fly’. Nowadays, Air Asia has offered to their customer more destinations to fly. Other than that, they not only provided their customer with airline only, they also provide their customer hotel service that is Tune hotel. Nevertheless, other factor that makes them consistently successful is they focused on low cost factor. That means, they concentrate to give services to their customer with low cost services that everyone effort to use their service. Coincidentally, they focusing their target buyer or target customer to specific taste of niche members.

So, I think that all from me..

p/s: keep smiling people J