Strengthening A Company's Competitive Position

BLUE-OCEAN STRATEGY – A special kind of offensive

A blue-ocean offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand.

RED-OCEAN vs. BLUE-OCEAN

Timing a company’s offensive and defensive strategic moves.

FIRST-MOVER vs. LATE-MOVER

In the business world, a first-mover is a company that aims to gain an advantageous and perhaps impossible market position by being the first to establish itself in a given market. Since the arrival of the World Wide Web, many companies have established themselves as first-movers in their respective marketplace on the Web. For example, Amazon.com is first-movers in online retailing and eBay in online auctions. Meanwhile, late-movers refers to companies that respond to the competitive action of a first-mover or pioneering mover. They are often characterized by imitation the first-mover or countering of the effects the actions of the forts mover. It is often thought that first-movers have the best advantage, while late-movers are the most disadvantaged. However, late-movers do have some advantages. The late-mover advantage means that followers can learn from pioneers' mistakes, see whether there is a market worth entering and judge consumers' tastes. For example, Carling will launch its British Cider. While there is nothing new about cider as a product, Carling's parent company, Molson Coors, must have been influenced by the success of Stella Artois Cider.

WHAT IS STRATEGIC ALLIANCES?

Strategic alliances are co-operative relationships between two or more independent organizations, designed to achieve mutually beneficial goals for as long as is economically viable. Typically, they involve shared financial responsibility, joint contribution of resources and capabilities, shared risk, shared control, and mutual dependence.

Example: Microsoft and Nokia – a software partnership for Nokia’s Windows Phones.

Examples of Five Generic Competitive Strategies

Michael Porter Five Generic Competitive Strategies

Assalamualaikum w.b.t.

The five generic competitive strategies include:

1)      Low-Cost Provider

2)      Broad Differentiation

3)      Focused Low-Cost

4)      Focused Differentiation

5)      Best-Cost Provider

According Michael Porter, strategies allow organization to gain competitive advantage from three different bases which are:

1)      Cost leadership

2)      Differentiation

3)      Focus

Porter calls these bases as “generic strategies”. Firstly, cost leadership refers to producing standardized products at a very low per-unit cost for consumers who are price-sensitive. There are two alternative types of cost leadership which are low-cost strategy and best-value strategy. Low-cost strategy offers products or services to a wide range of customers at a lowest price available on the market. Meanwhile, best-value strategy offers products or services to a wide range of customers at the best price-value available on the market. Both two types of strategies target a large market.

Secondly, Porter’s generic strategy is differentiation. It is a strategy aimed at producing products and services considered unique industry wide and directed at consumers who are relatively price-insensitive. A successful differentiation strategy allows a firm to charge a higher price for its product and to gain customer loyalty because consumers may become strongly attached to the differentiation features. Special features that differentiate one’s product can include superior service, spare parts availability, product performance, useful life, ease of use and etc. the most effective differentiation bases are those that are hard or expensive for rivals to duplicate.

Lastly, Porter’s generic strategy is focus. Focus means producing products and services that fulfill the needs of small group consumers. Two alternative types of focus strategies are focused low-cost and focus differentiation. Low-cost focus strategy offers products or services to a small range of customers at the lowest price available on the market. Meanwhile, focused differentiation offers products or services to a small range of customers at the best price-value available on the market. It is sometimes called “best-value focus”. The aim is to offer a niche group of customers’ products or services that meet their taste and requirements better than rivals’ product do. Both two types focus strategies target a small market.

Ashura Day @ 10 Muharram

In the name of Allah, we praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to falling astray, none can guide them aright. We bear witness that there is no one worthy of worship but Allah alone, and e bear witness that Muhammad is His messengers.

Assalamualaikum w.b.t to all Muslims ^^

How are you today? I hope all of us in the protection of Allah. Insha Allah. Today, I would like to share about “Ashura Day”. As a Muslim, we already know what is “Ashura Day” right? Ashura day is the 10^th day or Muharram (the first month of the Islamic calendar). Since the beginning of this world, Ashura day has been a very important day. On this day, Prophets, Saints and Sincere servants of Allah were blessed with miracles and spiritual powers. Therefore, what I can say here is 10 Muharram is a great day! ^^ 

The stories behind the day of Ashura are:

1   1)      Repentance of Prophet Adam A.S was accepted by Allah.

2   2)      The ship of Prophet Nuh A.S came to rest on a mountain called Al-Judi.

3   3)      Prophet Ibrahim A.S was born on this day and he got the title Khalilullah (friend of Allah) on this day.

4   4)      The fire in which Prophet Ibrahim A.S was thrown by the king Namrud become cool and means of safety for Prophet Ibrahim, by the order of Allah.

5   5)      Allah delivered Prophet Ayub A.S from distress and he was restored to prosperity.

6   6)      By the grace of Allah, Prophet Yunus A.S was casted out on the shore after being swallowed by a huge fish (whale) for forty days.

Actually, there are many stories but, I just listed some examples of the story behind the Ashura day. Sorry. Now, I would like to talk about fasting on 10 Muharram. 

Fasting on Ashura day carries a great reward. It is better to fast both 9^th and 10^th of Muharram or 10^th and 11^th Muharram to distinguish Muslims and Jewish because they also practice the same thing.

“Berpuasalah kamu di Hari Ashura dan kamu bezakanlah dengan (amalan) orang-orang Yahudi. Oleh itu, berpuasalah sehari sebelumnya dan sehari selepasnya. “

-Hadith Ahmad-

In short, it would be “afdhal” to fasting all three days which are 9^th, 10^th and 11^th Muharram. If not able, fast on 9^th and 10^th. If not able too, it is sufficient to fasting on 10^th Muharram. It is due the fact that, our beloved Prophet Muhammad S.A.W has said that this is the most rewarding fast next to Ramadhan. Our beloved Prophet has also said that fasting on Ashura day will compensate for one year’s sin.

So, I think that’s all about from me. I hope with a little sharing can be beneficial to us in this world and the hereafter. I’m sorry if I’m wrong in transmitting knowledge. If I’m wrong, please let me know. Thank you very much.

“Whatever written of truth and benefit is only due to Allah’s assistance and guidance, and whatever of error is of me. Allah alone knows best, and he is the only source of strength. May Allah guide us to the straight path of Islam. May Allah guide us to the Siraat al-Mustaqeem.”