So, the creation of new markets with focus on non-customers to create demand using blue ocean strategy will be an interesting approach, besides other aspects and methodologies. One key point of Blue Ocean Strategy is how to create value and how to make customer comfortable and willing to pay for it. Innovation has a key role on this matter, but not only. It must
Hence to successfully compete, survive and flourish, an enterprise has to pursue an expansion strategy. There are following advantages and requirements for adopting the same: • It is adopted to gain a significant growth as compared to incremental growth envisaged in stability strategies. • It is also adopted to increase the rate of growth of sales, profits and shares by entering new markets, acquiring new resources, developing new technologies and creating new managerial capabilities. • It also provides a blueprint to the business eneterprise to achieve their long term growth objectives. • It allows the companies to maintain their competitive edge even in advanced stages of product and market
In different ways this strategy can be achieved: New geographical markets New product dimensions or packaging New distribution channels New market segment created by different pricing Key points A market development strategy helps to sell the existing products and services into the new market. It has four different kinds of strategies that can help to achieve this: new geographical markets; new product scopes and its packaging; new channels used for distributions; with the help of new pricing, new market segments can be
Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals. An effective corporate strategy will allow a company to gain a competitive advantage over its competitors. The most common competitive strategies as stated by Porter (1980) are 1) Overall Cost Leadership 2) Differentiation and 3) Focus. The one most applicable to State Street would be differentiation. Differentiation is defined by Porter (1980) as creating something that is perceived industrywide as being unique.
EXECUTIVE SUMMARY • This is a study that shows the various entry and expansion strategies that are available for a firm when choosing to go global or increase market share within the market. • There are various strategies found out , they are : Exporting and importing , Joint Ventures, Strategic Alliances, Franchising , Licensing and Foreign branching. • In exporting and importing, firms choose between direct involvement and indirect involvement. This is the level of involvement with the foreign customers. Most firms prefer direct involvement due to the costs and risk of having an intermediary do the communicating in the foreign market.
These strategies involve a variety of different combinations of using resources, scientific and technical skills; forming alliances; licensing innovations; attempts technology and market forecasting; and attempts to develop a variety of new products and processes on their own. (Freeman & Soete, 1997) This article focuses on some of the theoretical approaches that suggest resources and capabilities as their sources of competitive advantage and that firms will develop its resources or capabilities to achieve competitive advantage. This article also looks into two practical examples of companies from different sectors, providing some evidence of the application of theoretical concepts with development of resources or capabilities, and eventually achieving competitive
By using the three main categories for Corporate Strategy which is stability, growth and retrenchment would guide the corporations toward its goal and objective. The advantage of corporate strategy in connection with the corporation’s goal and objectives is that a corporation can gain financial advantage if it enters into a joint venture or acquires other companies it can increase profits, cash flow and borrowing power. Another strategy is functional strategy. This is used to maximize resource productivity and achieve corporate and business unit objectives and strategies. It is concerned with developing and nurturing a distinctive competence to provide the corporation with competitive advantage.
This is because by using all of the four strategies, perhaps the company can earn many profit and can sustain in market for a longer time. As have been mentioned before, it is advisable for the some company to concentre only on one competitive strategy to ensure that they can stay in the industry, but the fact is, it is flexible and subjective as the company can change it according to the situation of the market and it ‘s own rival. Firstly, in order to assist my Malaysian business to become more competitive and can earn more profit in the market it is recommended for them to proceed with the differentiation leadership and focus strategies. As both of these strategy could help the company to produce or offer a product or service that meet the demand of the customer or user. In addition, from both of these strategy the company can differentiate their own products or services to become more unique or as a completion to the feature that is lack on its own competitor products or services.
Since the enormous value of Blue Ocean Strategy exists in its powerful tools and process of innovation, the strategy is more pertinent about the “how” than the “what”. The theory presents robust analytical frameworks and tools that foster an organization's ability to succeed in systematically creating and capturing “blue oceans” of uncontested marketspace, rather by battling competitors. Value Innovation – The Cornerstone of
On other hand, from the vision and mission, company objective, internal audit, external audit, and competitive advantage. We can conclude the strategy that suitable and effective in action. There are several strategies, which are market penetration, unrelated diversification and market segmentation that prove the strategy is work with effectively. This company has very high competition in the global markets, however still survive in very long term condition. The question how the company survives is answer by the way company implements the strategy with