---P.G.S---> The 4 Categories of Business Strategies

ASSALAMMUALAIKUM.... 

¡hola!!!my dear friends...i will talk about P.G.S...what is P.G.S???u all wonders right..P.G.S stand for Porter’s Generic Strategic..in short word i call it P.G.S not PMS OK....Porter’s Generic Strategies was create by Micheal Porter which is a professor at Harvard Business School. A firm’s success in strategy rest upon how it positions itself in respect to its environment.Micheal Porter has argued that a firm’s strengths ultimately fall into one of two headings:- cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, 4 generic strategies results consist BROAD COST LEARDERSHIP, FOCUSED COST LEADERSHIP, BROAD DIFFERENTATION and FOCUS DIFFERENTATION 

BROAD COST LEADERSHIP

Mydin giving customer more value for the money by offering upscale product that attribute at a lower cost that rivals.With the tagline “Why Pay More??Buy at Wholesale Prices” it provide product at affordable price for customer to pay especially in the low and middle class. Such a product is in food line, household, soft lines and hard lines item. These all product from food until fabric all we can get at Mydin at lower price. It also practice a HALAL concept and stresses on honesty, sincerity and good discipline in all aspect of business..For the example we can look it through it employees whereas they always smile and treat a customer in proper manner also it can be the best leading wholesale and retail company because it provide the best value of goods and always maintain the excellence in the business. Mydin can be the low cost provider because most buyer always use the same product at the same ways so it can maintain the price with the rivals such as Giant..because we know the price competition among rival sellers is vigorous. So.. lets we support Mydin!!!yeah!!..:) 

FOCUSED COST LEADERSHIP

Concentrating on a narrow price-sensitive buyer segment and on cost to offer a lower-price product. As example we take Al-Ikhsan that begin the business with single store at Johor Bahru and now it owning 132 outlet. With the tagline “The Biggest Sport Retailer in Malaysia” that provide world class sporting goods to all Malaysia and also providing a platform where any Malaysia can own world class sporting goods. From there we can look that Al-Ikhsan focused on sport item that expensive if we buy it oversea. In Al-Ikhsan we can get any brand item form Nike, Converse, Adidas into local brands because it provide international club team jersey,malaysian club team such as PKNS and harimau selatan jersey also a national team jersey with the affordable price. On the 1st stage al-ikhsan just provide men product but now women also can get shoes or cloth in al-ikhsan..The price on all of the product are best buy either it is a high quality shoes or cloth and all people can buy and get any all sport product with any brand in Al-Ikhsan store. Al-ikhsan can be in best position in business if they win the price sensitive buyer and set the floor on market price but can still earn a profit. That can make it a wider store as same as other branded store such as Nike because it have a high quality product. Lets visit Al-Ikhsan store or outlet and get happy shopping!!.. http://www.al-ikhsan.com/ 

BROAD DIFFERENTIATION

A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customer. It because most customer perceive the product to be different and better than that of rivals.As example we look at McDonald, the customers are all classes, but largely working and middle classes and people of all ages.McDonald’s know that some customer go to its store to take a quick break from their activities and not because McDonald was able make their food ten seconds faster than competitor. So McDonald’s marketing executives put together the phrase “Have you had your break today??”. It also bring the value, quality,convenience and quick service that were make us feel like getting break in a hectic day. Also it provide a simple easy enjoyment to every customer at every visit..With the tagline I’m Lovin It..i’m sure most people like to go to McDonald to get the burger..and always like to like to being there because the environment itself.. 

FOCUSED DIFFERENTIATION

Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members.A firm that using a focus strategy often enjoys a high degree of customer loyalty and this entrenched loyalty discourages other firms from competing directly. It because of the narrow market focus, firms pursuing a focus strategy and have lower volumes and therefore less bargaining power with their suppliers.However a differentiation focused strategy may be able to pass higher cost on to customer. We take example of Porsche where their principle “Doesn't’t simply build sports cars, Porsche is more, much more and Porsche is different” also the brand policy “ focus on performance in deep-rooted in ourselves but it certainly does not end with he cars”. The special of Porsche it have personal customer consultation that focus on the their customer about the vehicle to make it unique and more exclusive as on the fingertips beside to maintain the customer loyalty. It provide the high class type of car such as Boxster, Cayman,911, Panamac, 918 Spyder,Macan, and Cayenne. Most the car a high quality with the expensive price that the high class only can afford to buy it. But by looking at the car model, the design of car is unique and nice..i’am also like the Porsche model especially the 918 Spyder model..it look so..elegant and classy..but person like me just dream to have it..but..it nothing impossible right that 1 day i can have  that car...heheee....insyaALLAH...:)

OK friends..i’ll continue with other topic..in next post..

Adius Amigos