Price flexibility and, very often the profits are linked to the firm’s market share position. What are the benefits of diversity in the workplace? The overall strength of a brand in the market place and its value to the company that own it is known as brand equity. answered Jun 18, 2019 by … Factor Abundance 6. A corporate image or its outstanding character from others is seen basically in capital-market, product market, labour-market and public relations. Similarly, every CEO who runs his company has a vision in his head as to what he wants the company to look like in the future. This helps in improving the design of the products or services and many unwanted features could be eliminated. 1. The success of a marketing organisation depends on this effectively, adaptively and innovatively designed used channel or channels of distribution. In this context we cannot forget South Korea and Taiwan. In other words, firms that have no advantages can only compete on price. It should be subservient to market needs and the development of core- competencies. In this dynamic and highly competitive world the “image” of “corporate” image has its own place. Functionality & Performance Competitive features and performance relative to other products on the market. It is applied research that bolsters up the fundamental research. It is what makes the brand, product, or service to be perceived as superior to the other competitors. Corporate status or image has its own impinging effect on competitors. Generally the goodwill or the premium placed by the general public and corporate publics is determined by its financial soundness and discipline, profitability, product image including brand image and its relations with labour the human-side of management. Therefore, it can be said clearly that’ value of a product can be increased either by increasing its utility with the same cost or by decreasing its cost for the same function. Let us take an example of audio-visual market in India with market shares. Competitive Strategy. Six ways to survive – and even grow –in a competitive world . Their motives are not always easy to discern. It is rightly said that early birds get the worms. Such a development can be technological, engineering, advanced or innovative. page. It is the omega source of its productive excellence, technological strength, economic achievement and social success. The quality that is generally assessed is in relation to the standard of excellence. The important aspects are basic or fundamental research capabilities, applied research and development capabilities, speed and advance of research and development process, development of new products and value engineering that can be considered as a part of it. Price as a communicator it speaks of price as something more i.e., real value of money, it gives quality equation, status equation, technological superiority, price reasonability from the angle of a consumer “place” as a communicator, talks of the store image, store, level merchandising. (c) Convenience in accessibility to markets. Take the annual Economic Time Top 500 corporate units. What clothes are to the human- beings so are the packages for the products. A. opportunity B. selection C. service D. quality. On the other end, each organisation is compelled to achieve more in terms of performance for both sheer survival and growth – both in the short and long term perspectives. It is the powerful instrument in which both the buyers and sellers are interested directly and the dealers indirectly for their individual and mutual gains. Of late, the question is not one of going in for research or not but one of at what speed and of what level? Tesla is a company that produces luxury cars and high tech technology. Countless examples of applied research can be given. The implications of this relatively low level of investment are that many front-line staff is expected to deliver high levels of quality service without the skills or the knowledge of what they are trying to achieve. Turning to Black and White Television sets, the ranking is PHILIPS and ONIDA share first place, followed by VIDEOCON and BPL and others. The corporate profile speaks of its origin, ups and down, path and rate of progress achieved or failed to achieve, philosophies followed, policies designed, strategies employed to move up and up to dizzy heights and retain that zenith point for longer time. Similarly in food systems, many technological, market or natural resource endowment factors go towards making up competitive advantage. A. opportunity B. selection C. service D. quality. Who competes on quality: McDonalds (that’s right, their cheese burgers taste the same all over the world). It is indeed foregone conclusion that with the advent of more competition the number of industries has multiplied. This warrants taking into account the entire set or system of forces operating on the employees must be considered well before the employee motivation and behaviour is adequately understood. The strength of sales- promotion lies in: By helping the manufacturers through creation of new customer retaining them combating competition waving middlemen; by helping middlemen via multiplying sales reducing the strain building store image bringing like in earning; by assisting the consumers by supplying information improving the standard of living granting incentives building loyalty giving better value for money. Which factor below is not one of the six? Training and development is that crucial process which brings about suitable changes in employee attitudes, skills and abilities to make them full-steamed power packed persons to increase organisational effectiveness and make them service minded with loyalty and productivity. Finally, the consumer will be given a product of better value. Research and development is a must these days by almost every adaptive firm though it costs in terms of time, treasure and talent. A successful organisation naturally goes through only the first three phases. Though it is possible to identify functional areas for competitive advantage, at least five broad functional categories can be identified. It is the sum total of parts like material used in its construction and its ability to perform, its packaging, its brands and the other intangibles associated with it all that speak about it image or personality. Competitive factors usually include price. It is one that provides network of working relationships among the different functions to be performed and a means of co-ordination among the people who perform the functions. Brand loyalty stands for the level of commitment that customers feel toward a given brand, as represented by their continuing purchase of that brand. industry and to determine factors influencing the competitive advantage of firms in the micro finance industry. Competitive advantage can be built over wide range of the marketing functional areas: The fundamental task of marketing is to deliver the package of offer to the consumer to fulfil his needs, in terms of his expected terms, attributes and benefits and make out organisational goals including profit maximisation. (b) Idle time of labour force – both direct and indirect. The corporate resource factors to be considered among other things are: Corporate image and status, the Chief Executive Officer, size of the company, corporate performance record, financial health and corporate structure and systems. 1.Quality 2.Price 3.Location 4.Selection 5.Service 6.Speed/Turnaround. In production field these can be cost reduction, bulk buying, division of labour, use of machines and electronics, use of by- products, research and development, optimum use of installed capacity, acquiring patent rights; the economics in management can be – employment of experts, reduction of over heads, use of modern techniques and appliances, economy in organisation; in the field of finance, these can be low rate interest finance, reinvestment of profits, withstanding of rigors of adversity, spread of risks, proper maintenance, reduction in bad-debts and better working capital management; in the field of marketing these can be – lower sales price, lower selling costs, prompt service, effective advertising, better sales agencies and enjoyment of monopoly position. In this case, company sells products at the same price as competitors but reaps higher profit margins because of lower production costs. The theories of motivation are three dimensional namely, content, process and reinforcement. Taking Audios – like transistor, sound gadgets such as two in ones, sound systems, walkmans – Colour Television sets and Black and White Television sets, the market share has been as under in 1995. Factor conditions show how far the factor of production in a country can be utilized successfully in a particular industry. Basic or fundamental research signifies original investigation for the advancement of scientific knowledge. The formation of main theories in literature review was illustrated by the concepts of competitive advantages through proper management action when managing the The total offer made warrants choice of right product, making it available at a place he wants, promoting the product for better understanding through communication component, and at a price that is reasonable from the angle of consumer and agreeable from his point of view. Privacy Policy 8. From the above table, it is quite evident that taking all products together Philips has the highest share followed by BPL, VIDEOCON and ONIDA rest by others. This extends also to the customer service you provide. Understanding the competitive advantage your company strives to maintain will allow you to focus your efforts on those areas that support your overall vision. The … It is not the case with the new entrants. A competitive advantage is a capability or position that allows you to outperform competitors. The reason is obvious that early bird gets the worm. The production and post-production facilities should be such that they take shorter time, least expenditure without compromise on quality or workmanship, with a minimum of waste of inputs, and reclaiming or recycling wastes of all physical resources in most cost effective manner. A competitive advantage is simply a factor that distinguishes your business from others and makes customers more likely to choose your product over the competition. Demand Conditions. External Economies are those which are enjoyed by all the firms and arise from location of industries and are at the disposal of all the units in the same industry. Such a system has three variables namely the individual characteristics, job characteristics and the work characteristics. The structure designed is to serve the changing organisational goals. It is left to the individual company whether it wants to be in small sector or large for there is definite reasons for being growing or remaining small. It means an act of persuading someone to accept an idea and make him or her act in a particular way. Who competes on lead time: Made-to-order manufacturers. Factor # 1. This value system of human side is going to be a crucial and decisive aspect of human-resource exercise. Competitive advantage is a favourable position a business holds in the market which results in more customers and profits. In the final analysis, the competitive cost advantage is reflected in comparative cost advantage or differentiation advantage. In this way, new products/services are created or the existing ones are essentially changed and with them new … The ability to create a perception of quality and. The six factors of competitive advantage are: Price, location, quality, selection, speed, turnaround and service. It is a modification or refinement that has its role. It is the factor that buyers look at when choosing between options in the market. In the field of marketing, the nature of information needed to manage the marketing functions of an enterprise is unique because of its dynamism and diversity. (g) Integration of the enterprise with economic, social and cultural traits of the community of the regions. As in industrial products, many factors go into making up the comparative or competitive advantage of a supplier. The company’s sales increased by 11 percent to a figure of Rs. Marketing research is not something which is already searched. Overall, a sustainable competitive advantage requires value-creating products, processes, and services that cannot be matched by competitors now, … The strongest forms of competitive advantage come from business model innovation and management innovation. Learn The Secret to Avoiding The Common Pitfalls Of Starting A Small Business From Scratch, Learn The Secret to Having a Money Making Business in One Month, How To Make Money On Craigslist, $60 Dollars in 1800 Seconds, This Site Was Created at Shy Entrepreneur | tjsblog.com, The Competitive Advantage Spectrum | ShyEntrepreneur, What Is In A Name? The Six Factors of Competitive Advantage. Washington, DC: The National Academies Press. The most significant product variables are – product line and product range – product design the product package, product quality, product labelling, product branding after sale services and guarantees and warrantees. The lead refers to the turnaround time required from the moment the order is received to the moment the item is in the mail. Technology 5. Judicious allocation of financial resources and continuous monitoring of financial results would go a long way in keeping the company’s financial health in sound position which helps to compete with others. Workplace diversity - inclusion fad or a competitive advantage? 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