Porter Generic Strategies and Giant

Topics: Porter generic strategies, Hypermarket, Strategic management Pages: 9 (2851 words) Published: November 19, 2010
In Malaysia, Giant will step into the age of 66 in year 2010; they are pioneer in the concept of modern supermarket shopping and has been ranked 11th of Most Valuable Brand in year 2007 and 12th in 2008, they also rewarded as the Top Retailer in Malaysia and Best of the Best in Asia Pacific Retailer’s Award for 2 consecutive years in 2007 and 2008. They also succeed in the Best Brands in Consumer (Hypermarkets), Brand Laureate Award 2007/208 for Corporate Branding and also the Excellence Service Quality Award in the 7th Asia Pacific International Entrepreneur Excellence Award.

Giant had been full support to our government by collaborated in their programs; they also offer Giant’s Outstanding Bumiputera Entrepreneurs’ Award to encourage and support their suppliers to achieve better in their fields. They also give promotion on Malaysian products in order to help them promote local products.

Giant also show their social responsibility by organizing fund-raising events for charity and launched the Job Coach Training Methods for People with Disabilities (PWD). Currently they have more than 100 disable full time workers. (Giant Malaysia, 2009)

We will be analyzing the current market situation and IT position of Giant, how IT can be used to help Giant in their future strategy and why systems risk security and recovery is important for Giant in this assignment.  Current Market and IT Position

Current Market for Giant
Giant is located throughout Malaysia, heavily in Kuala Lumpur, whereby it has its own known slogans and brands at many shopping malls. The share market of 24% of Giant is a very huge percentage due to there are currently 107 stores nationwide serving over 8 million Malaysian monthly (Jayaseelan, 2010).Accordingly, Giant is attributable with everyday low prices, big variety and great value. Thus, Giant deeply evokes brilliant views of a vibrant, pleasant and comfortable shopping environment. Porter’s five forces:

1.Competitive rivalry within the industry.
An opposing competition towards Giant is available deeply in such as some small retailers that are being scattered around Malaysia. Carrefour, Tesco and Jusco are also nominated to be in the same competitive flow by doing very vast hypermarkets in Malaysia. This makes Giant in a very distracted position especially if the Giant wants to become more desirable and more popular in the marketplace. 2.Threat of new Entrants.

The opportunity of creating other entrants in Malaysia is expected to be happened if the entrants are highly successful to penetrate their markets by giving more promotions and incentives. Giant is using very potential strategies especially in promoting its goods; therefore, the power of purchasing in Giant is going up to some extent. 3.Threat of substitutes.

This is more serious element that ought to be highlighted in order to recover all the outputs that might affect Giant among these new expectable substitutes. Creating a hypermarket online with a free delivery to homes, like what is happening in Saudi Arabia, is a very competing substitute toward these hypermarkets which is more attractive for many customers. This makes many clients do their orders online in order to save the cost of delivery.

4.Bargaining power of customer.
The standard of bargaining power of customer is more humble since the cheaper items on giant are more provided variously .Thus, the customers are likely more satisfied with those decreased prices. Since the cheaper goods are located with the high market share, there is a little diminished bargaining power among Giant from customers comparing with the other hypermarkets in Malaysia. 5.Bargaining power of suppliers.

Giant is offering its products with low prices, therefore, the Giant is described as to be a little bit tough with suppliers in order to have the lowest price hence they can make the target of the low cost prices. Giant is considered as a huge business for suppliers so they will be still moving...
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