[solved] tudungkita sdn bhd (tsb) produces and sells a wide range of enduring premium quality and fashionable athletic hijab that is well known to t PDF

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Tudungkita Sdn Bhd (TSB) produces and sells a wide range of enduring, premium quality and fashionable athletic hijab that is well known to the customers of any age. It controls 40% of the market share in the trendy athletic hijab industry. Their sales had increased tremendously for the last five years since the hijab become a fashionable trend. In 2019, one of the TSB competitors, Bumiputra

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Mas Sdn Bhd (BMS), sells stylish and premium athletic hijab to underserved customers, who are children. BMS's strategy has generated explosive revenue growth, and it becomes prominent in the market. TSB had ignored BMS's success and viewed it as a noise. Later, many small companies

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entered the market, applying cost leadership as their competitive edge strategy. Nevertheless, TSB did not realise that these small companies can be a threat to the company. At the end of 2020, TSB lost its market leadership as its market share has dropped to 20% as opposed to BMS's, 30%.

Ask a question Required: a. Discuss how the strategy adopted by BMS had challenged TSB's market leadership. (10 marks) b. Prepare relevant information for a presentation to the TSB company board, including relevant bullet points and supporting notes in the slides, differentiating the strategy of TSB and its rivals. (10 marks) (Total: 20 marks)

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Step-by-step explanation a.) BMS has adopted a differentiation strategy that aims to provide its customers with something unique and distinct from its competitors, mainly TSB, the industry leader during 2019. Its strategy focused on the needs of its customers/target market which were left unfulfilled by TSB, and the industry as a whole. They invested on this narrow and underserved market, and took advantage of what TSB was lacking. In the end, they have succeeded with this customer-centric strategy as they have successfully differentiated their products and ha presented the idea to its customers that there is no other product available on the market to substitute it with. Thus, such strategy, that gave the perception to its customers that no othe brands serves their needs better than BMS, also promoted customer brand loyalty. b.) First, let's identify the two basic types of competitive advantage. Cost leadership - This strategy aims to provide similar quality products at a lesser cost, through efficiency, outsourcing or process innovation. Of course, customers when given a chance, will opt for a cheaper alternative if the benefits gained from buying such product are more or less the same, thus boosting overall sales and market share. This was the strategy that was adopted by the small companies in the industry. Differentiation strategy - As mentioned earlier, this is achieved by providing unique products/services that are different from its competitors. This can be achieved through various methods, through branding, advertising, design, quality or new product development. When differentiation is done effectively, customers would then be willing t pay higher only for unique features and the best of quality. Actually, both BMS and TSB were adopting this strategy. The difference lies in the scope. TBS' approach was a broad differentiation strategy that will appeal to a vast range of consumers. Meanwhile, BMS' was that of a focused differentiation strategy that aimed to fulfill the requirements of a niche or narrow market. Although they have decided on using the same approach, BMS did it better. Now, where did TSB go wrong? At first, its differentiation strategy to produce and introduce premium and trendy athletic hijabs was effective given competition was not that tight when they first started, and thus, it was able to establish its brand image and reputation through this strategy. However, when the industry started to expand, TSB grew complacent and depended on its long lasting reputation, and it was unable to respond fast to the changes in the industry. Meanwhile, BMS on the other hand, exploited these changes, adjusted accordingly and gained superiority through its innovative capabilities that focused on the needs of its customers. What can TSB do to regain its footing? TSB must rebrand itself, and decide what they want to be known for, this time, based on actual research on their target audience, without dismissing or neglecting the minority markets. It must also invest in a more aggressive marketing and advertising approach as they can't afford to reply on their reputation alone. If BMS can be innovative, then TBS should try to be more innovative than them. If they choose to continue with a differentiation strategy, then they could choose to produce unique hijabs such as those that can be easily worn, or styled in a lot of various ways, or hijabs that are waterproof or stain proof. They could as well produce hijabs that are adjustable and flexible, those that can accommodate a variety of shapes, age, or size. They could produce hijabs that are more breathable and comfortable without sacrificing the aesthetics. They could combine the two strategies of differentiation and cost leadership as well and try to accommodate the underserved market, at a lower price than that of BMS by focusing on its processes. The possibilities are endless, and they can still bounce back from this downfall.

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