Question

Based on Porter’s Competitive Advantage Strategy to overcome the Pos Malaysia Bhd 2 weaknesses

Answer 1

Definate weaknesses of Pos Malaysia Bhd :

• High staff and operating cost.
• Dependent on authorities to approve postage rate.
• Stake holder and client network
• Marketing and customer support

Porter's Solution to the stated weaknesses:

1. Cost Leadership

In cost leadership, Pos Malaysia's main focus should be to minimize the cost of services they provide. The sources of business profits may vary and is very much dependent on the business model of the company. It might incorporate cost effective strategies, feasibility study of the business model , providing low cost services and many other variables. If reducing cost is the main target , the company should exploit every possible expenditure, and thus it can achieve a state of sustainability where it may prove to be a good competitor to the rival companies.

2. Differentiation and client network:

In this strategy, a organization tries to stand out by incorporating a unique, stand out feature which is the crucial point of success for their business and it should also be valued by its clients. Developing a differentiation strategy helps the company to penetrate the market thereby gaining a good percentage of the market share, After establishing a solid ground, they can further look to improve the feature/service and thus increasing the premium for that particular feature/service.

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