COMPETITIVENESS AND STRATEGY

Competitiveness:
STEVENSION Willium Jr. p-36

Competitiveness relates to how effective

an organization is in the market place
compared the other organizations that offer
similar products or services.
 Factors of Competitiveness

- Price
- Quality
- Product or service differentiation
It refers sp. Feature like Design, cost, User-friendly, Wrranty and convenient
location

- Flexibility and
Changing design of product or services and relates with
demands.
- Time to perform certain activities.
How quickly product or service delivered?
How quickly product or service improved?
Why some organization Fail
SWJr.p.39

Organizations fail for variety of reasons. Among the chief

reasons are the following:-

1. Putting too much emphasis on short-term financial

performance at the expenses of research and
development.

2. Neglecting operations strategy.

4. Giving importance on product or service design instead
of process deign and improvements.

5. Failing to establish good internal communication and

cooperation among different functional areas.

6. Failing to consider customers wants and need.

Remark# Through QFD-Quality Function Deployment approach can help to over come the problem
no. 6.
 Strategy
STEVENSION Willium Jr. p-38

Strategy
Strategies are plans for achieving organizational goals. It has
a great impact on what the organization does and how it
does it. Strategies can be long term, intermediate term and
long term. To be effective, strategies must be designed to
support the organization’s mission and its organizational
goals.
Tactical Decision and
Operations Strategy
 The Operations Strategy
STEVENSION Willium Jr. p-42

Operations Strategy is narrower in scope, dealing primarily

with the operations aspect of the organization. Operations
strategy relates to products, process, quality,costs,lead
times and scheduling
 Types of Strategy commonly
followed by the org.
Time based (STEVENSION Willium Jr. p-46)

Quality Based (STEVENSION Willium Jr. p-46)

Scale based (STEVENSION Willium Jr. p-39)

Specialization based (STEVENSION Willium Jr. p-39)

 Strategy Formulation:
STEVENSION Willium Jr. p-43-44

• To formulate an effective Strategy, the organization must have

follow the following steps:-
1. Managers must take into account the distinctive
competencies of the organizations. The most effective
organizations seems to use an approach that develops
Distinctive Competencies based on customers needs as well
as on what competitors are doing.

-Distinctive Competencies are those special attributes or

abilities posed by an organization that give it a competitive
edge. And it relates to the ways that organization wants to
compete. The ways can include Price, Quality, Time, Flexibility,
Customer service, Location etc.
2. Environmental Scanning

It is the considering of the events and trends that present

either threats or opportunities for the organization. Generally
these include competitors activities, Changing consumer
needs, Legal, economic, political and environmental issues.

-Depending on the nature of organization and the locations of

its customers these issue may be global, national, Regional or
local.
3. They must determine what competitors are doing or planning to
do, and take that into account that is Benchmarking
4. They must have critically examine other factors that could have
either positive or negative effects. This sometimes referred as
SWOT (Strength, Weakness, Opportunities and Threats)
approach.
5. They must have take into account both Order Qualifiers and
Order Winners. TERRY HILL describes
Characteristics that customers perceive as minimum
standards of acceptability to be considered as a potential for
purchase.
Characteristics of an organization’s goods or services that
cause it to be perceived as better than the competition.