CHAPTER 3 STRATEGIC INITIATIVE FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Business Process Re-engineering (BPR)
BPR is the analysis and redesign of workflow within and between organization. For example Maybank2u.com use the network for everything service.

Question: How organization use BPR to improve their business?
Answers :

1. Shared database, making information available at many places. for example Ali's car broke down and he call the insurance company, then the nearest insurance company will send their agent to solve it. Means every branch of insurance company have the same database of their client.
2. Expert systems, allowing generalist to perform specialist tasks.
3. Wireless data communication and portable computers allowing field personnel to work office independent.
4. Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found.  

COMPANY DID NOT USE BPR

 

  COMPANY USE BPR

car broke down

STUDY CASE: Say 'Charge It' with Your Cell Phone

Questions:

1. Do you view this technology as a potential threat to traditional telephone companies? If so, what counterstrategies could traditional telephone companies adopt to prepare for this technology?
2. Using Porter's Five Forces describe the barriers to entry for this new technology.
3. Which of Porter's three generic strategies is the new technology following?
4. Describe the value chain of the business of using cell phones as a payment method.
5. What types of regulatory issues might occur due to this type of technology?

Answers:

1. No, because traditional telephone companies will focus on other sector, such as handphone that focus to elderly people. One of the company that focus in this sector in Inomobile Company. this company had launched handphone for elderly people. The counterstrategies could traditional telephone companies do is use the three generics strategies which is focused strategy that is target to a niche market.It concentrate on differentiation. Such as F8 model.

General Specification

Operating Frequency: GSM900/1800MHz
Dimensions (mm): 102*48.5*14.5mm
Talk Time (mins): 130-300 mins
Storage Capability: 32MB NorFlash
Screen Size: 1.6 inch
Pixel Resolution: 128*48
Ringtone: 16 tones polyphonic

Key Experiences

Candybar design
MONO Display
Smart design for the elderly
Super big key design
Build in Speakerphone
Electric torch light
Digital time announcer
Shortcut dialing
SOS emergency call

        2.  The barriers to entry for this new technology:

•    For supplier.

                 Suppliers power will become low when many competitors. For example Samsung and Apple, they have same product which approximately similar that focus on the touchscreen smartphones. 

•    For buyers

                      Buyers power is higher because buyers have many choices to buy the product in the market. When to advance in technology, the community will due to the lack of interaction with people. 

• Threats of Substitutes Product and Service

                      Usually, an telephone companies would like to be on a market in which there are few substitutes of their product or services. Such as, latterly an Apple company had launched their iPhone 5 in Malaysia which offer a network mobile in 4G.

• Threat a new entrants 

                     It is the Porter's five forces the barriers to entry for this new technology. They want to introduce and attract people to buy their product. for example Motorola. event Motorola product producing traditional mobile product to compete with other company. 

• Rivalry among existence competitors 

                     They do not think about another advanced product. for example, product already have in market, they just focus to compete with each other and to produce the same product like touch screen smartphone.
 

6. It is porter three generic strategic in the new technology. Differentiation in their products can help the company to create competitive advantages by distinguishing their products on one or more features important to their customers such as BLACKBERRY and I-PHONE. For blackberry the company focus more to the unique the products by using the track-pad and button keyboard but i-phone refer to touched screen phone.

4. The value chain of business of using cell phone as a payment method such smartphone like android. this diagram show the flow of using cell phone as a payment method.

5. The regulatory issues might occur due to this type of technology is fraud. for example, is using others people credit cards to make transaction, children can use their parents credit card. For supplier side, they will make double charges without customer knowledge.

  

   

CHAPTER 2: POTTERS 5 FORCES MODEL

1. Buyer Power/ Bargaining Power of Customer.
As a consumer, we have a power to choose a product that we want to buy. The power will become high if we have many choices and low when our choices are few. If the company want to reduce a buyer power, it must make their product more attractive to buy from their self not from competitors. Nowadays many company will choose the best alternative such as IT- based to make it easy to their consumer. As we can see, once upon the time, the MAS airline became a monopoly airline company, after the Air Asia existence and they introduce the booking on-line ticket system that used the IT-based, the MAS airline became crashed.

2. Supplier Power/ Bargaining Power of Supplier.
It is vice-versa with buyer power which is their power is low when customer have many choices and high when they have few choices. For example, business to business marketplace, private exchange allow a single buyer to posts it needs and then open the bidding to any supplier who could care to bid such as www.mudah.com. Reverse auction is an auction format in which increasingly lower bids.

3. Treats of Substitute Products and Services

 Threat of substitutes product and services will becomes high when there are many alternative to a product or  services and low when  there are few alternatives from which to choose. For an example to travel in country there are many transportation that we can choose such as air plane, buses, train and others. Besides in new era many product smartphone that customer can choice. For example for Samsung use an android n Iphone use an ios in their operating system. . 

4. Threat of New Entrants

 When to many competitors produce the same product or enter the market and it will barriers to enter the market or to compete with others company. If there were has many same product in the market they will might faces difficulties to compete with others competitors. Nowadays to many smartphone in market such as Blackberry, Samsung, Apple and others. This company will face difficulties to compete with each others. every product has their own speciality and customer will buy if the product are satisfied them or fulfil their criteria such as an iphone are known and special in touch-screen phone.

5. Rivalry among existing competitors.

There will high when competition is fierce in a market and low when competitors are more complacent. although competitions is always more intense in some industries that in others. The overall trends is toward increase competition in almost every industry. e.g: the airline industry faces serious threats from airlines operating in bankruptcy, who do not pay on the debt while slashing fares against those healthy airlines who do pay on debt. ( MAS & AIR ASIA)