Company Registration No: 4964706. Draw a conclusion and the impact of using one strategy on the other strategy. In addition, targeting either a narrow or broad market helps firms further understand … Customers felt dissatisfy as they have to buy expensive snack in plane even tough in a long flight. Cost leadership are difficult to maintain due to imitation and competition. There are 3 levels of strategy, which are Corporate Strategy, Business Strategy, and Functional Strategy. Conclusion The goal of an organization is to attain long-term viability, maintain financial stability, while smoothly running their day-to-day operations. Air Asia does not provide refreshment for passengers to cut cost. Managers need to take care of these pitfalls so that they cap, undertake appropriate measures to be successful with this strategy. A firm using focus strategy enjoys higher degree of customer loyalty. In this essay, a request was given by Impala Platinum’s management team that we, look into their current business situation. Haagen-Dazs focusing on the industry had ensured it to have continuously improvement over years. For an example, Air Asia, the low cost airline industry giant had implemented this strategy. A cost leadership strategy works on the basic principle that more the number of units produced, lower will be the unitary cost. 1) THE PROBLEM 1.1.PROBLEM DEFINITION. Air Asia provides cheap cab rental for customers that are far away from the airport. The technology industry is very competitive and requires firms operating in it to be very intense in their strategies in order to not only gain competitive advantage, but also operate profitably. Corporate Strategy, (2014) Available from: Strategic Management: Developing sustainability in. Pretorius, M. 2008. FireFly provides complimentary refreshments for passengers in a long flight but Air Asia has snack for sell on plane. The cost leadership strategy or low-cost strategy has some shortcomings or pitfalls. Haagen-Dazs focus on ice-cream segment had make the company become the most successful luxury ice-cream company in the decade. The first, question of this essay referred to the first case study. They wish to have transport provided by the airport so that it is convenience to reach airport. described from a theoretical perspective. Customer expectations are the trusts about service delivery that serve is as standards or reference points against which performance is judged. Amazon is the world’s largest online retailer and is indeed a pioneer in the online retailing space. Chapter 6: Selecting Business-Level Strategies. One case study was reviewed. Passengers felt satisfy as they could have free refreshment on board. The shortcomings are as follows, which are responsible for the failure ofthe cost leadership strategy: 1. Strategic Management 4e_Chapter 13_PPS_ed.pdf, Francis Kago Research_Proposal-FK (3)-TT290620FK.edited.doc. The areas of FireFly delivering customer expectation and not delivering customer expectation. Cost Leadership is the mechanism of establishing a competitive advantage by having the lowest cost of operation in the industry. This chapter explains generic business-level strategies that executives select to keep their firms competitive. Firms that compete based on price and target a broad target market are following a cost leadership strategy. Air Asia also provides fast plane turnaround that is critical to ensure time spent on the ground is minimal. The flight attendance in the airplane is friendly and polite to the passengers as Air Asia knew that linkage between guests’ satisfaction is a long term success. Porter, author of Competitive Strategy, is widely known in business circles and is thought of as the father of modern business strategy theory.His central thesis is that businesses can create and sustain a competitive advantage in the marketplace by following one of two strategic choices: 1) cost leadership or 2) differentiation. The first question of this essay referred to the first case study. Organisations should have review their strengths and weaknesses and pick the most appropriate strategy according to the business nature. Reflectively, the concept, as proposed by Porter, is a mean of establishing a sustainable competitive advantage over other player in the industry. The study further recommends the need to strengthen this study via a longitudinal study and compare the performance of different categories of businesses as well. Acquiring qualit… The premises of the strategy chosen and the risk, advantages and, disadvantages of the strategy were also mentioned within question one. Therefore, strategy can be defined as an efficient use of the available resources to achieve the main goal. Organisations that adopt focus strategy will enjoy a high degree of customer loyalty. conclusion section. … Different organisation in different industry would have applying different type of strategy. The first question of this essay referred to the first case study. Our academic experts are ready and waiting to assist with any writing project you may have. Simply being amongst the lowest-cost producers is not good enough, as you leave yourself wide open to attack by other low-cost producers who may undercut your prices and therefore block your attempts to increase market share. Air Asia provides lowest price tickets. Mintzberg, H. (1998) The strategy concept I: five Ps for strategy. 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