Professional Documents
Culture Documents
Economies of Scale:
Learning Effects:
Experience Curve:
Marketing:
R&D Strategy
Information Systems
Infrastructure
quality:
1. Quality can be thought of in terms of two dimensions and gives a company two advantage
Quality as reliability :They do the jobs they were designed for and do it well
Quality as excellence :Perceived by customers to have superior attributes
A strong reputation for quality allows a company to differentiate its products.
Eliminating defects or errors reduces waste, increases efficiency, and lowers the cost structure
increasing profitability.
innovation:Building distinctive competencies that result in innovation is the most important
source of competitive advantage.
Innovation can:
Reduce costs
So it must be continuous
Customer responsiveness: giving customers what they want, when they want it, and at a price they are
willing to pay - as long as the company’s long-term profitability is not compromised.
Customization
Tailor to unique needs of groups of customer
Response time
Increase speed
Premium pricing
A declining industry is one in which market demand has leveled off or is falling and the size of total
market starts to shrink. Competition tends to intensify and industry profits tend to fall.
INDUSTRY FORCES
Ease of Entry
Power of Suppliers
Power of Buyers
Availability of Substitutes
Competitors