BMST5103(2)/May17/A-NK Assignment 2 Purpose

BMST5103(2)/MAY17/A-NK ASSIGNMENT 2 PURPOSE

The purpose of this assignment is to develop learners’ ability to evaluate and write a given case study using the concepts learnt in strategic management.

REQUIREMENT: Read the articles below and answer the questions at the end of each article.

Paper For Above instruction

Strategic management is fundamentally about understanding, evaluating, and positioning organizations within their competitive environments. The case studies and articles provided offer insights into diverse business strategies and competitive advantages across industries. This paper will analyze the main problems, strategies, and competitive advantages of selected companies—CIMB, UTAR, Fareeda, Old Town White Coffee, and Crocs—drawing on strategic management concepts to critically evaluate their approaches and future prospects.

Analysis of CIMB’s Strategic Approach

The case of CIMB Group Holdings Bhd exemplifies a strategic move toward expansion and consolidation through acquisition. The main issue in the case centers around CIMB's plan to acquire Jupiter Securities for over RM50 million to facilitate a joint venture (JV) with China Galaxy Securities. The core problem is the need for CIMB to acquire an additional stockbroking license to operate the JV effectively in Malaysia, as their current license under Investment Bank (IB) is restrictive and limited to their operations alone.

The company's strategic approach is an example of vertical integration and strategic alliance formation aimed at expanding its regional footprint and reducing operational costs (Bartlett & Ghoshal, 2019). CIMB plans to establish a JV with China Galaxy Securities, capitalizing on economies of scale and market reach to compete more effectively in the highly competitive Malaysian and regional securities markets.

This strategy aligns with diversification and partnership strategies outlined in the Ansoff Matrix, which emphasizes growth through market development and strategic alliances (Ansoff, 1957). By acquiring Jupiter Securities, CIMB aims to enhance its product offerings, reduce costs, and leverage China Galaxy's extensive customer network, thus gaining a competitive edge in the regional securities industry.

Justification of CIMB’s Strategy

The strategy appears justified as it leverages CIMB’s core competencies while addressing specific operational limitations. According to Porter's Generic Strategies, the move can be viewed as a cost leadership and differentiation effort, seeking to reduce costs via economies of scale and diversify its offerings through partnerships (Porter, 1980). The acquisition provides a platform to streamline operations, share technological capabilities, and expand customer base.

Additionally, the partnership with China Galaxy Securities offers access to a large clientele and advanced online trading platforms, aligning with the current trend toward digital transformation in financial services (Kose & George, 2019). Such alliances are crucial for staying competitive amid rapid technological changes and increasing industry fragmentation. However, risks such as the difficulty of integration and regulatory challenges should be strategically managed (Hill & Jones, 2012).

Analysis of UTAR’s International Rank

The main issue discussed in the article centers on Malaysia's higher education institutions' international competitiveness, focusing on UTAR’s recent entry into the top 120 universities in Asia. UTAR’s achievement highlights opportunities for growth driven by improved research quality, international collaboration, and reputation building—core factors in university ranking systems (Tobin & Begley, 2018).

UTAR’s main competitive advantage lies in its strategic focus on affordable, quality education and its expanding international collaborations, which enhance its research output and global visibility (Yusoff et al., 2019). Its collaboration with industry and government agencies for research, coupled with targeted international student recruitment, contribute to its rising profile (Tan & Lee, 2020).

Strengths and Opportunities for UTAR

UTAR’s influential strengths include accessible affordable education, strategic industry partnerships, active faculty research, and its growing international reputation. These attributes support a competitive position within the Malaysian and Asian higher education sectors.

Opportunities for UTAR are extensive. They include expanding its international student base, forging more research collaborations, leveraging digital education platforms, and developing niche programs in emerging fields like AI and data science. Another opportunity involves regional expansion into neighboring markets such as Indonesia and Vietnam to attract more international students (Kaur & Khandaker, 2020).

Recommended Strategies for UTAR

Based on its strengths and opportunities, UTAR should focus on enhancing its digital learning infrastructure, expanding international collaboration networks, differentiating its programs in niche areas to attract specialized students, and increasing its research output through strategic alliances. An emphasis on quality research and international recognition can further improve its global rankings and reputation (Ng et al., 2021).

Analysis of Fareeda’s Competitive Advantage

Fareeda’s competitive advantage lies in its strong brand identity as an exclusive, fashionable Malaysian scarf designer with a focus on high-quality fabrics, unique designs, and strategic marketing. Its success is demonstrated through extensive advertising, collaborations with media and government agencies, and its strong social media presence—over 1 million Facebook fans—making it a market leader in Malaysia’s fashion accessories industry.

Fareeda’s success in marketing this advantage is evident as it has become the number-one exclusive scarf brand in Malaysia. Its strategic sponsorship of TV programs, fashion shows, and competitions enhances brand visibility and customer loyalty, reinforcing its differentiation through branding and exclusive design.

Old Town White Coffee’s Differentiation

Old Town White Coffee differentiates itself through a unique heritage-based product formulation, maintaining traditional roasting processes that emphasize authenticity and quality. Its focus on heritage, traditional flavors, and consistent taste enhances its brand perception as a premium yet affordable Malaysian coffee brand (Khan & Islam, 2019).

While Old Town White Coffee has carved a niche in the Malaysian market and expanded regionally, competing with global brands like Starbucks remains challenging. Its differentiation through heritage and traditional preparation provides a cultural advantage, but Starbucks’ global brand recognition and diversified product offerings present significant competition.

Crocs’ Competitive Advantage

Crocs’ competitive advantage is primarily based on its proprietary Croslite™ material that offers unmatched comfort, lightweight design, and odor resistance—features highly valued by consumers seeking casual footwear. Its extensive product portfolio, global presence, and strong brand recognition further reinforce its market position (Lee & Lee, 2019).

Differentiation Strategies to Compete with Crocs

To compete effectively with Crocs, a newcomer or existing competitor should focus on niche segmentation, such as eco-friendly materials, innovative designs, or multifunctional footwear. Emphasizing sustainability, customization, or luxury versions could set a brand apart, appealing to different consumer segments. Additionally, harnessing digital marketing and social media to foster community engagement and brand loyalty would be essential.

Conclusion

The case studies demonstrate that strategic initiatives like acquisitions, branding, differentiation, and innovation are crucial for organizational success in competitive markets. CIMB’s strategic alliance, UTAR’s ranking growth, Fareeda’s branding, Old Town White Coffee’s heritage appeal, and Crocs’ technological edge reflect different paths toward competitive advantage. Future success depends on effectively leveraging core strengths, seizing emerging opportunities, and mitigating risks through strategic adaptation and continuous innovation.

References

  • Ansoff, H. I. (1957). Strategies for Diversification. Harvard Business Review, 35(5), 113-124.
  • Hill, C. W., & Jones, G. R. (2012). Strategic Management: An Integrated Approach. Cengage Learning.
  • Kaur, R., & Khandaker, S. (2020). Higher Education in Malaysia: Opportunities and Challenges. Asian Journal of Educational Research, 8(1), 45-59.
  • Khan, S., & Islam, T. (2019). Heritage and Traditional Authenticity in Malaysian Coffee Brands. Journal of Business & Cultural Studies, 23(2), 101-115.
  • Kose, O., & George, B. (2019). Digital Transformation in Financial Services: Challenges and Opportunities. Journal of Financial Innovation, 5(2), 33-50.
  • Lee, M., & Lee, W. (2019). Brand Identity and Consumer Loyalty: A Study of Crocs Followers. International Journal of Fashion Marketing and Management, 23(1), 74-86.
  • Ng, J., Mak, A., & Wang, W. (2021). Strategic Positioning and Internationalization of Malaysian Universities. Asia Pacific Journal of Education, 41(2), 191-205.
  • Porter, M. E. (1980). Competitive Strategy. Free Press.
  • Tobin, J., & Begley, T. (2018). University Rankings and Academic Programs: Impact on Higher Education. Journal of Higher Education Policy and Management, 40(4), 330-342.
  • Yusoff, W., Razak, S., & Salleh, R. (2019). Internationalization Strategies of Malaysian Universities. International Journal of Educational Management, 33(2), 546-560.

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