Monday, 7 January 2013

Organization : Compliance or Choice


Organization should approach strategic choice since it generates opportunities and open room to compete with other competitors within industry. On this basis, strategic choice encourages new ideas, innovation and creates a uniqueness which leads to the competitive advantage. At this point, this will construct a big gap amongst its competitors to imitate and catch up them. Indirectly organization that focuses this concept will be a market leader in the industry, increasing leadership in organizing and leading companies, that to the extent it can be associated with what Blue Ocean Strategy is. This could achieve when it creates value to both buyer and company. 

A good example is Air Asia which operating in Malaysia forms room in budget airline industry with the tagline 'Every One Can Fly', sounds catchy and attractive. Air Asia had managed to avoid the red ocean (compete with Malaysian Airline and regional airline) by looking into the factors that important to its customers. By understanding the utmost need of customers is to fly, so the company focus is every Malaysian at least can fly once, thus it creates a mutual benefit. Budget become an ultimate focus and Air Asia strategic move is by eliminating over the counter booking system, free food/beverage on the plane and seating class booking. Apart from that, they also reduce seat quality and luxury facilities provided by airport lounge and few more things. 


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