chapter five : THE FIVE GENERIC COMPETITIVE STRATEGIES

 

ASSALAMUALAIKUM...

   From the topic the five generic competitive strategies i can understand what distinguishes each of the five generic strategies and why some of these strategies work better in certain kinds of industry and competitive condition than in others.

THE FIVE GENERIC COMPETITIVE STRATEGIES

     Low Cost Prodvier

Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers

  Broad Differentiation

 Differentiating the firm’s product offering from rivals’ with attributes that  appeal to a broad spectrum of buyers.

  Focused  Low-Cost

  Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product

    Focused Differentiation

  Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members

  Best-Cost Provider

  Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals

HOW DOES AIR ASIA COULD MANAGE THE OFFER PRICE

    In my class, for the last lecture 8 october 2013, we have to discuss about how does Air Asia could manage to offer cheaper airfaces. In my opinion, firstly Air Asia offers the online ticket for customers to easy check the price, date, or destination.By using the online ticket, they dont need to come out print the cost paper to be ticket and reduce the counter ticket. Secondly, Air Asia management cut so many operational cost. Futhermore, Air Asia not have many workers. U can see, an employee in Air Asia will do a lot of work. For example, all the stewardess is multipassing, with check the ticket at gate,sell for in flight, serve customer, and stucking luggage.Besides that, Air Asia didt give the opportunity for the customers to choose seat and its small space with many people. As fr instead people dont care it because the price Air Asia offer.

  Air Asia also prefer to choose the cheaper airport for landing and fly.For example, in malaysia, Air Asia prefer to choose LCCT airport than KLIA. The best strategic management that Air Asia have in ansuming reducing the cost was, they buy the fuel when the price of the fuel was decrease and the prefer to buy the fuel in bought or wholesale. Lastly, Air Asia have the a low-cost providers core concept basis for competitive advantage is lower overall cost than competitors. Successsfull low cost leaders, who have the lowest industry cost, are exceptional good at finding ways to drive cost out of their business and still provide a services that customers find acceptable.

now everyone can fly