KecipirDiet Company sells organic based lunch set, packed and distributed around Klang Valley area. The target are individuals concerned with healthy diet, which is a trend among the Malaysian community. Further, the company prioritize a product that is affordable by customer. The owner, Puan Asmah, also farms and supply organic raw materials continuously to KecipirDiet at a reasonable price. Puan Asmah believes that her products are able to compete in the market which is proven by the companys stable annual profit. However, there has been numerous uncertainties in year 2022. In order to sustain, Puan Asmah should make changes, either by proposing innovative products or widened the companys market to a larger scale which will involve significant capital investment.

Required:

a) Discuss the companys pursuance of Cost Leadership Strategy. Compare the cost leadership strategy with defender strategy suggested by Miles and Snow. (5 marks)

b) Explain the companys strategic positioning based on Porters Model of Five Forces. (8 marks)