Competitive advantanges

From the second topic of HRIS, we had identified the basic competitive strategies and how to use it to confront the competitive forces it faces. There are five main strategies: cost leadership, differentiation strategy, innovation strategy, growth strategy and alliance strategy. Cost leadership is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. Differentiation strategy is based on a product or service that unique from others that valued by the customer perceive it's better than others provider. Innovation strategy is based on the products and services in order to radical changes to business processes. Growth strategy is based on the global markets, diversify into new products or services and alliance strategy, based on establish linkages with customers. Some of the company use one, some, or all of the competitive strategies. Besides that, we had also exposed to what is PESTLE analysis, it is a tools to help organization develop strategies by understanding the external environment from the organization. From the activity 2, we had divided into few groups to think about a product in the market which some companies had acted by using competitive strategy. Our group presented the differentiation strategy of HSBC and CIMB, for example, HSBC has using the benefit of discount in certain product to attract customer by the way CIMB was using the strategy of gained pointer to exchange product in the market. From the assignment given, i had exposed to the organization system of HSBC. HSBC separate their service into 2 types, personal and commercial. In the categories of personal, they got HSBC Premier banking services, personal financing, home loans, insurance, internet banking, investments and credit cards service. For commercial, they got business, SME, international banking systems. I realized that they were keep moving towards in order to provide their best product and services to their customer. They are strive to gain satisfaction from their customer and attract new customer to invest to their services. For example, HSBC have the internet banking system and it allow every user to access their account anytime everywhere. It allow to do mobile banking with selected smart phone, assured that the information is being protected by one of the most sophisticated online security systems in Malaysia!



References:
1) http://www.quickmba.com/strategy/generic.shtml
2) http://www.hsbc.com.my/1/2/
3) http://www.renewal.eu.com/resources/Renewal_Pestle_Analysis.pdf