Thursday, November 28, 2013

Sharing Session With The Founder of O-SHIMA Restaurant

Today we had a sharing session with the founder of O-SHIMA restaurant, Pn Asnidar Hanim Yusuf.
She set up her business on 2009 where this restaurant provides Halal Japanese Food.She said O-SHIMA is name of big island in Japan. As asual,when started the business, Pn Asnidar had faces many challenges and obstacle. She always be strong  and never give up .

She is an owner of her restaurant but still her dressed resembled an engineer style, respect for her for being able to exit from her comfort zone to be an entrepreneur! – Arraharatnasari K Maarof

Full surprising from oshima..maybe one day,they can prepare full enviromental of japanese culture  - Nasrul Hakim Roslan

Bento Delivery!

Food Tutorial Preparation 

Tuna Mayo maki sushi 

Chapter 7 :Strategies for Competing in International Market.

Today I want to explain our next topic on for this chapter 7 Strategies for Competing in International Market.  Generally, when you learn this topic,you will get to develop on understanding of the primary reasons companies choose to compete in international market.However,this topic objectives to learn about the five major strategic options for entering foreign markets.

Globalization is forcing companies to do things in new waysBill Gates – Founder and Chairman of Microsoft

Once a company decides to expand beyond its domestic borders,it must consider the question how to enter foreign markets.There are sic primary strategy options for doing so :

  • Maintain a national (one-country) production base and export goods to foreign markets
  • License foreign firms to produce and distribute the company’s products abroad.
  • Employ a franchising strategy.
  • Establish a subsidiart in a foreign market via acquisition or internal development.
  • Rely on strategic alliances or joint ventures with foreign companies.


Ok guys,, I will focus on two things that I am interested in this topic.
For this topic I have learned on the STRATEGIC OFFENSIVE PRINCIPLE. This principle is a one of the strategy that can be use by the company to defense their current strategic planning. It is also to lower the firm’s risk from being attacked by the competitors.

Competiting in the marketplace is like war.You have injuries and casualties,and the best strategy wins – John Collins – NHL executive

  • Offer low cost; ex: offered by Air Asia which they provide low-cost ticket for their customer
  • First to-market with next generation; ex: Microsoft x-box
  • Continuous product innovation; ex: Apple product (i-phone, i-pad)
  • Good ideas of other firm; ex: android
  • Guerilla warfare; hit & run (social media) ex: Facebook
  • Preemptive strike; ex: Nippon

So here i would like to share about strategic offensive principles that i have learned in last class. This strategic offensive is option when a firm or company to improve market position.

  • ·  Focus on relentlessly building competitive advantage and then converting it into sustainable advantage.
  • ·  Apply resources when rivals are least able to defend themselves.
  • ·  Employ the element of surprise as opposed to doing what rivals expect and are prepared for. 
  • ·  Displays a strong bias for swift, decisive, and overwhelming actions to overpower rivals. 
  • ·  prepared for. 
  • ·  Displays a strong bias for swift, decisive, and overwhelming actions to overpower rivals. 

Chapter 5 : Generic Strategic

Salam .

For this chapter, I have learned on the topic of Generic Strategic. Generally, this topic discussing on how a firm able to maintain a strategic planned in order to compete with other rivals and improve their competitive performance. Learning objective are to gain command of the major avenues for achieving a competitive advantage based on lower costs.Under this topic, there are five categories where they are:

1) Low-cost provider
2) Broad differentiation
3) Focused low-cost
4) Focused differentiation
5) Best-cost provider 

Those categories have their own way that can be used by the firm to compete and keep sustain with their rivals. I will choose AirAsia as my example for low- cost provider. 

As we know, Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers.  Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia.  Their vision is "Now Everyone Can Fly" and their mission is to provide 'Affordable Airfares' without any compromise to Flight Safety Standards.
Low cost airlines strive to achieve the lowest possible price for their products and services. Low prices cannot sustain unless the company maximizes its operational efficiency
The success factors of Asian low cost airlines in reducing their operational cost include:
1.      Service savings (no frills cabin service and extensive use of outsourcing)
NO-frills include:
NO drinks, NO food, NO headphones, NO newspapers, NO movies, NO VIP lounges, NO expensive offices, NO mileage programs, NO seat allocation, NO children’s fares, NO paper tickets (Electronic tickets only), NO connecting flights (All flight-legs must be booked independently)
2.      Operational savings (point-to-point services and uniform fleet)

3.      Overhead savings (internet sales and streamlined bureaucracy)
We can compare the operational cost in terms of costs per available seat kilometer (ASK), a measure of the running cost of the airline. For instance, Ryanair in Europe is almost half of the ASK price comparing with the full services airline. The average fare offered by Air Asia in Malaysia is 40-60 % lower than its full-service competitor.

Success factors in AirAsia

Absolute Cost Advantage
1.    Low cost per average seat kilometer
AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001. On the other hand, the operating cost of the company is also dropped drastically.
2.    Low distribution cost
AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost.
3.    Attractive ticket price
With the average fare being 40-60 % lower than its full-service competitor, AirAsia has been able to achieve strong market stimulation in the domestic Malaysian air market (Thomas 2003). For instance, the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car. The effect of attractive low fare is more travelers switching from bus to air, similar case as Ryanair in Europe.
Good Management Team
AirAsia value proposition is more sophisticated than Ryanair placing equal emphasis on brand reputation and customer service/people management, by a senior advisor to AisAsia’s top management team. AirAsia pursue a Ryanair operational strategy, Southwest people strategy and an Easyjet branding strategy.
Fair availability
The availability of AirAsia is not good as traditional airline as it only provide unique aircraft. However, it cannot be the cost leader if it offers customized features or comprehensive support which will result in increasing operational cost.

Wednesday, November 27, 2013

Chapter 4:Evaluating a Company’s Resources, Capabilities and Competitiveness.

Now, let’s we going on to the topic 4 which is explained on Evaluating a Company’s Resources, Capabilities and Competitiveness.  What is actually all this words meaning?Do you know my friends?

Resources: source or supply from which benefit is produced. Typically resources are materials, money, services, staff, or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable.

Capabilities: Business capability is the expression or the articulation of the capacity, materials and expertise an organization needs in order to perform core functions.

Competitive: having a strong desire to compete or to succeed.

Only firms who are able to continually build new strategic asssets faster and cheaper than their competitors will earn superior returns over the long term – C.C. Markides and P.J.Williamson

On this chapter, I also learned on hot to assess how well a company’s strategy is working.Besides that, I’m also understand why a company’s resources and capabilities are central to its strategic approach and how to evaluate their potential for giving the company a competitive edge over rivals.

I think that’s all for today. Till meet you again on my next post. See you next topic.