BUSINESS STRATEGY AND COMPETITIVE ADVANTAGE

STRATEGIC

MARKETING SHOULD AIM TO IDENTIFY WAYS AND MEANS TO ACHIEVE COMPETITIVE ADVANTAGE

EG:TOYATO

PRODUCTION SYTEM.
MEANS:
JIT

MOTOR CORPORATION. COMPETITIVE ADVANTAGE IS PHILOSOPHY OF TOYOTO

(TPI)

(INVENTORY STYRATEGY) KAIZEN ( STRATEGY TO REUCE WASTE AND CONTINOUS IMPROVEMENT):

JIDOKO

(STOPPING PRODUCTION WHEN ERROR IS DETECTED)

LEAN

PRODUCTION (REDUCE PRODN COSTS)

COMPETENCY AND COMPETITIVE ADVANTAGE ?



TERM COMPETITIVE ADVANTAGE IS OFTEN SYNONYMOUSLY USED WITH DISTINCTIVE COMPETENCY. BUT BOTH ARE DIFFERENT COMPETENCTY IS A MEASURE OF DISTINCTIVE ADVANTAGE OVER OTHERS IN TERMS OF RESOURCES AND CAPABILITIES. COMPETITIVE ADVANTAGE ON OTHER HAND IS THE RESULTANT MKT SHARE AND PRIFITABILITY DUE TO ABILITY OF THE FIRM TO PROVDE SUPERIOR VALUE TO CUSTOMERS OR ACHIEVING LOWER COSTS IN COMPARISON TO COMPETITION.

COMPETENCIES CAN BE ACQUIRED EASILY,THEREFORE COMPETITIVE ADVANTAGE SHOULD FOCUS ON ENHANCING PERFORMANCE TO SUSTAIN THE ADVANTAGE OVER LONGER PERIODS AND THOSE THAT CAN NOT BE REPLECATED EASILY

COMPETITIVE ADVANTAGE CAN BE ACHIEVED WITH ENHANCED INVESTMENTS &RESOURCES,IMPROVED SKILLS & ABILITIES AND BETTER CONTROLS.

ENHANCED RESOURCES
 

THEY ARE TANGIBLE REQIUEMENTS SUPERIOR TO COMPETITION HAVING PHSICAL PRESENCE PEPORTED IN CO REPORTS OF FINANCE.




HOW TO IDENTIFY?
1) COMPETETOR ANALYSIS (compare these with competition in terms of nature of resource and size) a) DISTRIBUTION NET WORK ETC b) COST OF RM ,QUALITY,RELIABILITY OF SOURCE c) SIZE OF MFG FACILITY & CAPACITY UTILISATION . d) INVESTMENT IN NEW TECHNOLOGY e) FINANCIAL STRUCTURE f) AMOUNTS SPENT ON SALES PROMOTION AND ADVTG h) SIZE OF SALES ESTABLISHMENTS,SALES FORCE & TERRITORY/REGIONS COVERED

  

  

  

IMPROVED SKILLS
  

IMPROVED SKILLS ARE UNIQUE CAPABILITIES OF KEY PERSONNEL THAT CAN HELP BUILD COMPETITIVE ADVANTAGE. WHAT CAN ONE DO BETTER THAN OTHERS ENHANCED RESOURCES ARE ONLY INPUTS INTO THE PROCESS ,IMPROVED SKILLS ARE THE ONES THAT TURN RESOURCES INTO SUPERIOR PRODUCTS/PERFORMANCES.

  

SKILLS TO BE IMPROVED ARE

a ) in -depth knowledge of specific mkts b ) ability to maintain good relation ships with customers and trade c ) capability to respond to environment changes quickly d) ability to manage and deliver complex information system to remote locations f ) abilities to identify M&A s and to negotiate & managing them.

 

  

BETTER CONTROLS
 

AIM OF CONTROLS IS TO AIM OF CONTROLS :

HOW WELL ENHANCED RESOURCES AND HOW WELL THETHE ENHANCED RESOURCES

IMPROVEED SKILLS ARE SYNERGISED TO DELIVER SUPERIOR PERFORMANCE. AND IMPROVED SKILLS ARE SYNERGISED TO DELIVER SUPERIOR

PERFORMANCE.


BETTER CONTROLS ARE NIETHER RIGID NOR IN APPROPRIATE FOR THE OPERATIONS


BETTER DESIGNED CONTROLS ARE NEITHER RIGID NOR IN APPROPRIATE FOR THE OPERATIONS

CONTROLS INCLUDE


COST CONTROL

QUALITY CONTROL

INVENTORY CONTROL ETC

MONITORING CUSTOMER SATISFACTION -----

  

To determine competitive advantage analysis of what we described earlier to be carried out in comparison to competition for competitive positioning IN ADDITIONTO THIS IT MAY BE ALSO BE NECESSARY TO CARRY OUT CUSTOMER CENTRIC COMPETITIVE ANALYSIS IN THE FOLLOWING FACTORS TO ASSESS JUDGEMENT OF CUSTOMERS. A) POSITIONAL ADVANTAGE BASED ON 1) PREFERENCE MODELS FOR MULTIPLE ATTRIBUTES OF DIFFERENT FIRMS IN MKT 2) CONJOINT ANALYSIS OF ATTRIBUTES -CUSTOMER PERCEPTION OF VALUE FOR MONEY,TRADE OFF BETWEEN ATTRIBUTES 3) MKT MAPPING ; FOR PERCEIVED DIFFERENCES OF COMPETITORS AMONG CUSTOMERS 4) RELATIVE PERFORMANCES OF COMPETITORS ON CUSTOMER SATISFACTION, BEHAVIOURAL ASPECTS ON LOYALTY PATTENS

Developing sustainable advantage



Generally companies develop competitive advantages on three area viz: innovation of product, manufacturing process and marketing competition on an average takes an year to collect product information ,acquire technical knowknow-how and imitation of production. Imitiation costs are cheaper to innovation costs there by negating the advantage so gained

Manufacturing process also easy to imitate and more vulnerable compared to product innovation


Competitors are able to imitate the production process 60 to 90% of successful companies quickly Mktg is less vulnerable to imitation because competiton initially tries to rework its mktg mix and initiate new strategies for advtg and promotions.Info on mktg strategy is limited and not transparent due to intangible nature.