Ordinary Market to International..

ASSALAMMUALAIKUM.... 

¡hola!!!my dear friends..at this moment i’m still strong  sit infornt on my lappy when my housemate get their beautiful dream along the rain in cold..suddently appear jelousy feeling..but must stay strong to update a new post for my lovely subject...(=_=) OK fara...back to the track....today post about strategies for competing in international market means to know the way on how the companies can move form ordinary to compete with the international market. 

Before we go futher, we must know the reasons why decide to enter foreign market and list it..It is because to gain access to new customer or to futher exploit core competencies or other factor..From that we can know the actual reason on why competing with other market to make more complete. Then we must have the key strategic consideration on demographic, cultural and market condition for make it easier to plan the strategic option for entering and competing in international market. It also have pro and cons in the various strategies such as export strategies on economic scale,licensing and franchising strategies on local market taste and source of requirement, the foreign subsidiary strategies in cost of acquisition and market entry also greenfield strategies on development and direct transfer of firm. These pro and cons a little bit be influence on competing the market. Other than that also can use alliance and joint venture strategies whereas know collaborative strategies that focus the way companies edge into market of foreign country.

Have 3 approach for competing internationally it shown:-

1)     Multidomestic strategy (Offering and competitive approach from country to country in an effort to be responsive.It is think loca, act-local of international strategy by decision making for decentralized to the local level)

2)      Global strategy ( Its represent a think-global and act-global approach)

3)      Transnational strategy (Think-global, act-global approach that incorporates elements of both multidomestic and global strategies)  

Companies that compete internationally can pursue competitive advantage in world markets by locating their value chain activities in whatever nation prove most advantageous.They must have the key location issues to build the competitive advantage such as customize offerings in each country market and pursue a strategy of offering a mostly standardized product worldwide. Beside that the company must have the profit sanctuaries where that means a country market that provide a firm with substantial product because of a strong or protected market position. By using the profit sanctuaries it can be use to defend against international rivals also must have strategies option competing the market for defending it against the global in developing countries.

That all the strategies that can be use to compete with the rival in the market beside to move up from ordinary to international by able to take a risk in entering the international market. Hope u all can make it as a tip to rose up the company level to international.

OK..till meet again in the next post..:) 

 Adius Amigos  

Competitive approach + Maximize the power = Strength Company Competitive Position

ASSALAMMUALAIKUM....

¡hola!!!my dear friends..i want to share with you all some quote “Competing in the marketplace is like war, You have injuries and causalities, and the best strategy wins” by John Collins – NHL executive. 

What i want to share here is about the strategy on how to strengthening a company competitive position. This is relate to the five generic strategies because while the company has completed it they must plan to the other strategies for maintain the company position using strategic offensive and defensive strategies.

What is strategic offensive??? It is such a general rule that be grounded in a company strategies asset and employ a company strength to attack rival in the competitive ares where there are weakest. For the example using the blue-ocean strategies, it seek to gain a dramatic new competitive advantage by abandoning effort to beat out competitors in existing market.

 In the easy word it such like W.Chan Kim and Renee Mauborge said “The key to exceptional business success is to redefine the terms of competition and move into the “blue ocean”, where you have the water to yourself. The goal of these strategies is not to beat the competition, but to make the competitor irrelevant.” (from book of blue-ocean).

Defensive strategies also can help the company because it to lower the risk of being attacked, weaken the impact of any attack that occur or the influence of challenge that aim the efforts at the other rivals.Actually its protect the company position. Beside that we can use the other strategies which is:-

1) Horizontal mergers ans acquisitions strategies

2) Vertical integration strategies

3) Outsourcing strategies

4) Alliances and partnership strategies 

These all strategies can be applied in the company to maintain the market position beside strengthening the company competitive position itself. By using this we can recognize which a the fist mover or fast follower or a late mover is most advantageous also can be aware of the conditions from the rivals or outside parties. Hope you all can gain if not more maybe a little form this strategies to be applied it into the company..

OK..hope will be some benefit on it..see in the next post!! 

Adius Amigos  

---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

VRIN----SWOT --&-- VALUE CHAIN------ Method for evaluate company...

 ASSALAMMUALAIKUM....

¡hola!!!hye dear friends....my celoteh today ia about a company strategy which is the way to make sure the strategy that plan a going well...so..the first and the foremost thing that should have is the business strategy itself and also the key functional of the strategy.By having this it will be the root of the company to run well. Other than that we must make sure what are the important resource and capabilities for firm competitive...Of course we must make sure the resource, capability also the competitive asset of the firm...and we can identify what must do and don’t for the company..

Another way to identifying the firm resource and capabilities by using the VRIN testing...for those who a not economic background must be weird when hear the VRIN testing right?? U all must thinking what is VRIN?? RING maybe??? For make it clear VRIN testing are framework that determine if a resource is a source of sustainable competitive advantage.. the word VRIN stand for.. 

V - Valuable (they must be  a source of greater value, in term of relative cost and benefit than similar resources in competing firm)

R - Rare (rareness implies that the resources must be rare in the sense that is relative to demands for its use.)

I  - Inimitable ( it is difficult to imitate)

N - Non-substitutable (other different types resource cannot be functional substitutes)..

That the explanation about VRIN testing for those who not familiar with the term..  Through this test we can know as much as the competitive power. Every company want to seize the market opportunity right???tools that we can use by using SWOT analysis because we know that SWOT is already a powerful tool for sizing up the company. Through SWOT we can identify the basis of strategy in the internal strengths, know the deficient capabilities in the internal weakness, do the strategic objective in the market opportunities and make the strategic defenses into the external treats..

By using this both tool VRIN testing and SWOT analysis we can managing the resources and capability dynamically. Even though we also must know the way to create the customer value and to create it we use the Value Chain tool...what is Value Chain???Food chain sure u all know right???

Value Chain are the tools that identifies the primary activities and related support activities that create the customer value..from the value chain the company and firm will know the way on how effectively and efficiently a firm to delivers value to its customer, relatives to its competitor..

By adding the Value Chain tool the method for evaluate the company will be complete and this a way for run the company in the right way.. until here first my celoteh hope u all can get a little bit information on how to evaluate the firm or company..till meet again ya!!  

Adius Amigos

ART..That not really the ART...

ASSALAMMUALAIKUM... 

¡hola!!!hye..hye..friends... i’m didn't want to say about strategic management just for a while but..i want to share with u people my ART drawing that i do last 2 days..hmmm .... ART???maybe can categorize as art although i know..my skill is so...so...bad...=p ...u all must be wonder how my art drawing look like right....ok..i will show u all..

Tadaaaa!!! 

 

How???nice right my drawing....^_^... the idea came suddenly ting!!! It appears to draw some art ...so...i just draw.. and draw it until i feel sleepy..because i can’t sleep at the first..and that are the result...i know..it look bad like a kindergarten drawing...hehehe..but..i’m satisfied with it.... 

Ok friends...only that i want to share with u all....art that not really like art... 

~Adeus Amigos~

Evaluate External Environment Organization...HOW????

Assalammualaikum..

¡hola friends!!!we meet again....i want to write about environment. Environment???hmm...what happen to our environment..is that too bad or too good...hmm??ok..what i want to say  is about the organization environment not the school environment...restaurant..or others... on how to evaluate it. On what i know based on my study we can use P.E.S.T.E.L. analysis. What is PESTEL??? It is some kind of food.??..of course lah not..ishhh...always thinking about food only...ok..back to the topic... 

P- POLITICAL

E- ECONOMIC

S- SOCIAL

T- TECHNOLOGICAL

E- ENVIRONMENT

L-LEGAL

PESTEL analysis is such a good combination on how to evaluate the organization. Through PESTEL analysis it also can be related with the SWOT analysis.. What it SWOT???.. 

S – Strength

W – Weaknesses

O – Opportunities

T – Treats 

By using SWOT analysis it can evaluate the PESTEL analysis in very deep or the step by step on how the environment  in certain organization weather it is in excellent level, moderate or bad level..   

Other than that, we can use Porter's 5 Forces..we use the Mr. Porter's analysis which include

1. RIVAL
2. BUYER
3. SUPPLIER
4. SUBSTITUTE PRODUCT 
5. NEW ENTRANTS

Through this 5 ways the organization will use it to boost up the company level environment by see it through every angle. This kind of important thing that all company must know if they want to success in their business. the environment is the important thing for be success.

 

Ok friends we stop here first..i will continue my celoteh with another topic later.....

~ Adeus Amigos~

Vision and Mission???Does People have It???

Assalammualaikum..

¡hola!!! OK my dear friends...i want to ask.....Hmmmmm.....what your vision and mission???hand up please..!!!!...who want to answer????hahahaa...ok..ask like there are people infornt of me... =) By the way let me explain what is vision and mission. What i understand Vision is what we want to become basically it short and precious and Mission are the answer to the vision the way on how to achieve the vision.
For example the vision want to be a successful businesswomen in food field and to achieve the vision we must have mission on how the way for being success in food field such as create unique food, tasty and easier to carry substitute of snack with affordable price which everyone can get and buy also create a good management and marketing to sold the product.
The most important is the target and the way how to achieve it. Since we have target and know the way insyaALLAH...everything will be going as a plan. So..same with our life we also must have vision and mission in life otherwise we will be usefulness person without any target and life will have lot of problem.. Find the vision and mission in our self on what we want to be and achieve...^_^

OK friends..until here first my celoteh.. 

~Adeus amigos...~