Apart from that, Porter's general competitive strategies can be utilized by the business that might use to develop and keep maintaining competitive advantage in the market, such as cost control strategy and concentrate strategy. Cost authority strategy which is the business tries to achieve most reasonably priced of production and distribution. Target strategy which is watching a few market sections.
There are two organizations that using different strategies to running their business. A corporation which is AirAsia, it is operating its business by using cost command strategy and also by using information system strategy, Air Asia can strengthen their position as a leading low cost air travel and getting ultimately more advantages with the motto "Now Everyone Can Fly. " Air Asia which flight company that came into a formerly hurting market with great success, such as ticketless travel, automation with IT, reduced costs, and upgraded service. Air Asia builds and sustains its competitive gain and strategy edge, which is using strategy to maximize company advantages to defeat its rivals by providing services at a price that is merely lower than competitors' price. For instance, Air Asia is using Web will be an edge where the sales can be expanded to the complete world as its market. Competitive advantage is achieved whenever a profit company heightens its profit by minimizing costs and increasing income. There are some reasons that produce Air Asia becoming a low-cost maker of airlines industry, such as ticketless, information send through online where do not need physical sales counter, and don't dependence on customer services. Customers do all the procedure such as checking, reserve, buying or even changing the time frame of airline flight.
Moreover, Air Asia is also using differentiation technique to expanding ways to distinguish a company's products and services from its challengers' or reduces the differentiation benefits of rivals. Air Asia is using E-commerce strategy that different with other airlines companies. For instance, E-ticketing or online reservation was the problem of a reservation code at the conclusion online transactions that replaced the original airline ticket. Addititionally there is impressive, Air Asia is finding a new way in request of IT in airlines business by becoming the first budget airline company with applied Business to Commerce (B2C) deal in the flight industry in Asia. While, customers can even now check and book air ticket by using cellular phone. In the other palm, alliance is establishing new business linkages and alliances with customers, suppliers, competition, consultants, and other companies. Air Asia alliance with many hotels in the world in order to provide travel deals to their customers.
There is another group using cost-focus strategy which is Starbuck. The merchandise cater for a particular portion of consumers, which sell at significantly cheap but premium, in the perception of consumers. It can be celled market. There is having bargaining power for the business, this means leverage to affect buyers and suppliers. For instance, attained by being major rival or eliminating competition, or uses purchase size that has the biggest purchase amount as leverage over suppliers.
Furthermore, Starbucks will be analyzing for demographics, it will target folks ages 15-64 make up the largest percentage of the population. Furthermore to waste lowering, Starbucks also seeks to reduce energy usage as soon as again, shows this by doing energy audits and then using the results to change store design or steps so that they save just as much energy as you possibly can. Starbucks also has upstream supply chain management expertise in resources high quality natural ingredients, which means it is monitoring, controlling, and facilitating resource chains. The goals of supply string management are to reduce developing costs, resources costs and also to properly control the inventory.
Moreover, the product will be crucial for the flavor and convenience. The presentation should be highlight the progressive micro-ground process and the sizing should be much easier to tear stay sachet with multi-pack size for travel. Within the other hand, there is absolutely no immediate merchandising or circulation experience beyond the retail store within Starbucks Malaysia. The major shareholder can leverage on its extensive businesses experience anywhere else within the meals and beverage sector to make headway into new syndication channels. The costs strategy is a evidently price skimming with an focus on setting a price that is high enough and high quality as well. A charges strategy that offers rewards for devoted Starbucks customers would work well for the partnership between your instant coffee and retail brew sector such as customer relationship management, which to raised know very well what customers want, to have the ability to collect payment quicker and to ensure timely shipment.