In this blog I would write a reflection of what I have learned for the last two weeks of this term.

During the weeks, there were three subjects that were taken. The first one is, APS which conducted on every Monday. In this class, I learned about “Bottom-up” and “Top-down” research about certain markets and industries as a continual lecturer of last week. Mrs. Carol demonstrated a table of macro and micro analysis, the table will be shown below.

Market                                                                                    Industry

Macro

(Customers)

PESTEL

Macro

(The player in the industry)

PORTER’S 5 FORCES

 

Micro

Value preposition

 

Micro

Competitive advantage

This table delivers a clearer picture of how to instantly understand and bear in mind the theory. Macro analysis provides a “Big-picture” of the market situations, while Micro analysis is a more specific analysis. Regarding to the market, we need to have some knowledge whether there is a target market in the market at the fist step; then we determine the value preposition. Value preposition regards to innovative ideas which give a strong influence to customers life, such as thing that they cannot live without. Substantially, it is important to understand customer purchasing power, whether market could afford products and services that are offered by the organization. Lastly, consider of the sustainability of the products and services of the organization.

In term of industry, it is crucial that the organization posses “competitive advantages” in order to survive and be sustainable in the market. This can be analysed through Porter’s 5 forces model.

 

 

screenshot-2016-10-27-06-03-27

As can be seen from the image above, Manufacturing needs to reduced their manufacturing cost in order to create a competitive price. Higher costs would lead to a higher price; therefore, organization has to set their price at the same level of the market price, overpricing and or underpricing would decline the organization’s competitiveness in the market. Overpricing may cause the customers to switch their preference to other organization, meanwhile, underpricing might cause loses to the organization.

 

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