HAFSA ISHTIAQ

BBA 8 M

01-111172-196

STRATEGIC COMPENSATION

QUIZ

Question)
Identify two companies – one that you believe pursues a lowest –cost strategy and
another that pursues a differentiation strategy. Relying on personal knowledge or
articles in newspaper and business periodicals (google), discuss these companies’
competitive strategy, also discuss how human resource tactics and practices in other
functional areas support a company’s competitive strategy?

Q MOBILE

Low-Cost Strategy:
The company that upholds lowest cost strategy is Q mobile. The target market of Q mobile to
provide low-cost mobile mobile with the latest features and technology. Q mobile was the
first company that succeeded in providing technology that matched the android level at cheap
rates.
Marketing Strategy:
They are also providing good quality products with good specifications which are user
friendly to the Pakistani market as compared to other mobile brands like Samsung, Huawei,
and Xiaomi. By providing low cost with latest technology, they were able to grab the market
and earn high profits.
Competitive Strategy of Q Mobile:
The competitive strategy of Q mobile is that it concentrates on latest trend and produces
mobile that lookalike smart phones in low prices. Moreover, they started with selling
traditional phones (Bar phones) and captured a huge number of clients from the rural
markets. After the victory of their bar phones, they launched their phones with qwerty
keyboards and also have Wi-Fi. Later that they pursued the trend set by Samsung, Apple and
Huawei and started presenting smart phones.
Business Strategy:
Their business strategy is evident that they want to capture one market at a time. As soon as
they gained success in their android smart phones, they launched their first android tablet and
in 2015 they also brought their first windows phone to the market. Their business strategy
depends greatly on marketing. Q mobile uses the highest percentage of its income on
marketing. This is the reason they have such attractive ads. They employ famous actors and
models as their brand ambassadors.
Their HR tactic is to manage their compensation strategy in order to monitor the wages. They
incorporate low wages and fringe benefits and adopt a gap strategy by employing
outsourcing. The reduction in wages they achieved is by hiring part-time employees because
company don’t have to give them fringe benefits. They also reward their employees on their
performance.

APPLE

Differential Strategy:

The company that uses differentiation strategy is Apple. Apple tries to increase market
demand for its products through differentiation, which requires making its products
exceptional and attractive to consumers. By aiming on customers wishing to pay more and
sustaining a premium price at the cost of unit volume, Apple also put an artificial entry
barrier to their competitors. For the last period, Apple has been approaching up with a new
and premium products such as iPhone and customers who are loyal to them. Apple has
formed a brand name and culture that is calm, entertaining, and friendly--the reverse of some
of its competitors.

Marketing Strategy of Apple:

Apple's marketing strategies include creating products that customers want to belong to that
community.

Business Strategy:

They intend to design and develop its own Operating System, hardware, software
applications and services exceptionally which helps the customers with the innovative and
new product solutions having rare features such as easy handling, perfect additions, and
innovative designs.

Competitive Strategy:

Their competitive advantage of Apple is control of its software, hardware, retail strategy,
product differentiation and most important is strategical decision making. For the distribution
system, Apple introduced a website for direct sales. Apple business strategy can be
categorized as product differentiation. In Particular, the multinational technology company
separates its products and services on the origin of simple, attractive design and innovative
functionality. First mover advantage is human resource tactics and practices in other
functional areas that plays a vital role in creating the business effective and increasing market
share.

Human Resource tactics and practices

The tactics and strategies used by the HR department are to align the other function of
organization to maintain the competitive edge. In the business world, human resource tactics
are those activities that will provide you with a competitive advantage over rivals. HR tactics
include starting channels of communication within organization, and make sure all recruiting,
and retention policies are conducted in a fair and consistent manner. Moreover, employee’s
expectation from HR department is to provide them well-defined jobs descriptions, so they
know what is required of them.

The HR tactics used allows Apple to be successful. The company give rewards to their
employees corresponding to their work. They require creativity and hard work to retain
quality that makes them remarkable from the other competitors.