What is an important factor in determining whether a company prospers barely gets by or fails?
Jan 18, 2021 Show
How to Determine Your Competitive Edge Competition is the driving force in many businesses. It may involve price, quality, special features or service, time or other factors. To develop effective strategies for business, it is essential for business owners to determine what combinations of factors are important to customers, which factors are order qualifiers (perceived minimum standards for acceptability to be considered for purchase), and which are order winners (perceived to be better than the competition). Competitiveness Businesses must be competitive to sell their goods and services in the marketplace. Competitiveness is how effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services. It is an important factor in determining whether a business prospers, barely gets by, or fails. Businesses compete through some combination of price, delivery time, and product or service differentiation. Marketing Efforts Influence Competitiveness A businesses marketing efforts influence competitiveness in several ways, including:
Operational Influences on Competitiveness Business operations have a major influence on competitiveness in several ways:
Why Some Businesses Fail Businesses fail, or perform poorly, for a variety of reasons. Being aware of those reasons can help business owners avoid making similar mistakes. Among the main reasons are the following:
The key to successfully competing is to determine what customers want and then directing efforts toward meeting (or even exceeding) customer expectations. Two basic issues must be addressed. First: What do the customers want? (Which items on the preceding list of ways businesses compete are important to customers?) Second: What is the best way to satisfy those wants? A businesses operational and marketing efforts must work together to obtain information on the relative importance of the various items to each major customer or target market. Understanding competitive issues can help business owners develop successful strategies. You can use the Live Plan Lean Planning process to evaluate your competitive landscape and to help you focus on the necessary business information needed to build your financial roadmap. Click here to learn more about how we use Live Plan and the Lean Planning process. If you’d like help creating your Lean Business Plan … we can help. We specialize in helping businesses create comprehensive financial plans, monitor their financial activity and understand their financial statements. So, if you don’t have the expertise or resources, click here to contact us. What determines the choice of the competitive priorities that a company should emphasize for its key processes?The firm's customers will determine which of the competitive priorities are emphasized.
How factors of operations affect the competitiveness of an organization?Operations have a significant impact on competitiveness through product and service design, cost, location, quality, response time, flexibility, inventory and supply chain management, and service. Many of them are interrelated.
Which of the major influences on competitiveness is a match between financial resources operations capabilities supply chain capabilities and customer needs and wants?**Operations has major influence in competitiveness through: Product and service design** should reflect joint efforts of many areas of the firm to achieve a match between financial resources, operations capabilities, supply chain capabilities, and consumer wants and needs.
Can be important in terms of cost and convenience for customers location near inputs can result in lower input costs?Location can be important in terms of cost and convenience for customers. Location near inputs can result in lower input costs. Location near markets can result in lower transportation costs and quicker delivery times. Convenient location is particularly important in the retail sector.
|