In this essay, you can easily know how SEM do business level strategy.

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Strategic Management: The Case of SOE Electric
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Business-Level Strategy
SOE Electric and Machinery Co., Ltd is the successful private and Myanmar national
owned leading company in manufacturing, distribution and power transformers. In
Myanmar, there is a small market size for the transformer without the public sector because
there is only industrial zone, shopping mall and private hospital which are used the private
own transformer by directly buy from the manufacturers. Therefore it is very difficult for
making the market segmentation in the transformer market. Therefore it can be said that
SOE Electric covered the whole transformer market in Myanmar.
Companies pursue a business-level strategy to gain a competitive advantage that
allows them to outperform rivals and achieve above-average returns. Among three basic
generic competitive approaches which are cost leadership, differentiation and focus, SOE
Electric choose focus strategy especially focused differentiation. There are so many
manufacturers who produced the high voltage or low voltage products in Myanmar.
However SOE Electric doesn’t enter into the other products area and they only emphasize
on the transformer market. Therefore it can be said that SOE Electric is used the focus
strategy.
There are so many different kinds of transformer in local market. However most of
these products are standardized or mostly used products. Only SOE Electric can produce
the customized transformer which has higher voltage than the standardized or mostly used
products because of the focus strategy, they can concentrate on a small range of product
and that will help SOE Electric to product the innovative products. Therefore SOE Electric
provides not only the standardized or mostly used products but also the customized
products and then SOE Electric has used the differentiation strategy for the business level
strategy.
Based on the industry life cycle, SOE Electric is now in the maturity stage. Therefore
SOE Electric is tried to hold and maintain their profit. In theory, the company’s investment
strategy depends on the level of competition in the industry and the source of the
company’s competitive advantage. Therefore SOE Electric continues to invest heavily in
maintaining the company’s competitive advantage by making R&D for the better electric
products and process. On the other hand, for the profit, they also try to export their products
to the other countries to maintain their profit level.
Submitted by Group 6 Page 1

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Strategic Management: The Case of SOE Electric
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Because of the focused differentiation, the company gets a chance to develop the
brand loyalty from the customers. Moreover because of the company offers the buyers a
unique product, the company can pass on price increases to customers and customers are
willing to pay the premium price. And then the company can prevent the threat of substitute
products because it is difficult for the competitors’ products to meet the same customer’s
needs. And the company gets power over its buyers because they cannot get the same
thing from anyone else. Then the company can stays close to its customers and to respond
to their changing needs.
On the other hand, the competitors can easily imitate the features and services of
the company’s products. Moreover the competitors can entry into this market segment. And
then because of the premium price, it can make the buyers to pay more cost. If there is
technological change or changes in consumers’ tasters, SOE Electric’s market can
suddenly disappear.
In conclusion, the business strategy, focused differentiation, is the best and suitable
for them. Nowadays there are few competitors in this market. However because of the
business level strategy the company used, they can still hold their market share and control
the profit level. On the other hand, the disadvantages of this strategy can make the
weakness for the company. Therefore the company should think about it and find the ways
to solve this problem.
Submitted by Group 6 Page 2