LECTURER Week 7 (22/10/2013)

Chapter 6: Strengthening A Company’s Competitive Position: Strategic Moves, Timing and Scope of Operations.

The best strategic option to company is to seize the initiative, go on the attack, and launch a strategic offensive to improve its market position. The best offensive is using a most powerful resources and capabilities of company to attack rivals in the areas where they are weakest. If the rival good at product then we need to change our course to buyer segment. Therefore, it is important finding and search the rival weaknesses. However, a company should avoid a price competition. Avoid a price war is so far as the best policy, but it is advice which may not always be taken if the benefits seem attractive.

We also learnt about blue-ocean strategy. Blue-ocean strategy offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand. For example, Starbucks Coffee is the first company that provide coffee that show wealth when drink coffee.

In the tutorial class, we discussed about blue Ocean strategy and so on.  Then madam also asked us about the case. She ask to whose wear a blue clothes at that day…haha.. She also says that she will not ask anyone that wearing the same colour clothes as her.

In this chapter, I have learnt various new strategies beside Blue-ocean strategy to be applied for strengthening a position a company competitive. Include:

Red-Ocean Strategy	A situation when company do not have any competitive advantage because has been taken or copied by other company.
Horizontal Scope	The range of product and service segments that a firm serves within its focal market.
Vertical Scope	The extent to which a firm’s internal activities encompass one, some, many, or all of the activities that make up an industry’s entire value chain system, ranging from raw-material production to final sales and service activities.
Backward Integration	Involves entry into activities previously performed by suppliers or other enterprises positioned along earlier stages of the industry value chain system
Forward Integration	Involves entry into value chain system activities closer to the end user. Outsourcing involves contracting out certain value chain activities to outside vendors.