R & D (Research and Development) and Engineering function can be a strategic advantagefor two reasons:
1. It can lead to new or improved products for marketing 2. It can lead to the development of improved manufacturing or material processes to gain costadvantages through efficiency.
Strategic Advantage Factors: R&D and Engineering
1. Basic research capabilities within the firm2. Development capability for product engineering3. Excellence in product design4. Excellence in process design and improvements5. Superior packaging developments being created6. Improvements in the use of old or new materials7. Ability to meet design goals and customer requirements8. Well-equipped laboratories and testing facilities9. Trained and experienced technicians and scientists10. Work environment suited to creativity and innovation11. Managers who can explain goals to researchers and research results to higher managers12. Ability of unit to perform effective technological forecasting.
DIFFERENT APPROACHES TO DEVELOP AN COMPETITIVE ADVANTAGE:
1.The first approach is to compete based on existing strengths. This approach is called KFS,abbreviated from Key Success Factors. The firm can gain strategic advantage if it focusesresources on one crucial point.