Primary Strategies Businesses Held So High â€Myassignmenthelp.Com

Question: Discuss About The Primary Strategies Businesses Held So High? Answer: Introducation Competitive advantage has been one of the primary strategies that businesses have held so high. Having a competitive advantage in the market always last for a short duration due to the dynamics that occur from time to time in the market. Competitive advantage is characterized by the ability of the business to cater for the needs and values of the customer (Johnston Bate, 2013). Customers have changing needs and thus they are moved by organizations that provide for their emerging needs through continuous innovation. The effectiveness of the premium prices is supported by an organization that is concerned about cost efficiency, customer responsiveness, and rendering of quality goods and services. Innovation can take various forms that are not limited to product innovation and process innovation. Product innovation can take the form of adding new features to the product so that it can sufficiently meet the values and the requirements of the customers. Product innovation can lead to an extremely new product or changes to the existing product (Boons Ldeke-Freund, 2013). A good example for a product innovation is the case of the invention of a microprocessor by Intel in the 1970s. The product innovation made the company more competitive in the market. It is relevant to note that this change guaranteed faster, powerful and more secure operations that created sustainability in the market. Process innovation can best be explained by the initiatives that companies engage in so as to make their operations more cost effective and interactive(Smith,2013). Process innovation creates an avenue where customers can be involved in the production of the goods through availing of processes th at entertain this. A great example would the case of Nike Company. The company was aware of the impact that customer involvement had on building its competitive advantage. With this in mind, it came up with a portal where its potential customers could upload the designs that they want for their shoes, and they could customize the shoes for them. The inclusion of the customers boosted the competitive edge of the company. The company was able to serve a larger market because it could customize its goods to its clients. Process innovation can be in the case of a new business model for a company. Air Asia is an example of an organization that gained a competitive edge in the Air line business by incorporating of e-commerce into its operations. The encompassing of e-commerce into its operations has seen the company save a lot of its resources than any other company in the market. Nonetheless, companies such as NOKIA, MOTOROLA and Block Busters have failed in upholding continuous innovati on. Porter's five forces in a food Industry The Porters five forces model appertain to five factors that verify the competitiveness of the company. To begin with, the bargaining power of the buyers is a factor that is a threat to organizations. The buyers have the disposition of purchasing the products that they require from any seller (MBA Crystal Ball, 2017) the threat lies in the ability of the buyers to access adequate information regarding the products that are in the market. The opportunity that is available for the industry is the capacity to utilize technology that will ensure that the customers are served with quality services. With the quality services, the customers will find a reason to purchase their products as compared to those of their competitors. To add on, the bargaining power of suppliers is imperative in the food industry. The potential suppliers, in this case, are the dairy suppliers, bakery suppliers, and meat vendors. To explain their bargaining power, it can be termed as low given that there are numerous providers of the fast foods. The opportunities that lie in the case of the fast food industry are the ability to get supplies for their outlets due to the limited differentiation that is in the market. Reliability of the suppliers is thus assured to the owners of the fast food industries. To add on, competitive rivalry among the competitors is a significant threat in the market. Competitors hinder a company from attaining high-profit margins in the market. The increased number of outlets is a major threat to the fast food eatery (E. Dobbs, 2014). The opportunity that is available is that a fast food eatery is supposed to provide quality services that surpass those of its competitors so that it can earn a competitive edge in the market. The threat of substitutes products is another force. In a fast food joint, there is the likelihood that one product may be substituted by another. For instance, a sandwich and a pizza, the threat of substitutes are accelerated by the limited differentiation in the market. The threat exists where one product can be preferred to another. The opportunity that exists is the ability of a fast food joint to come up with unique products. Lastly, the threat of new entrants is also a force that is applicable in the fast food industry. The barriers to entry dictate the inability of a new food outlet to enter the market due to market restriction (Rothaermel, 2015).The restrictions give a competitive edge to the food outlets that are already in the market which is a threat. The opportunities lie in the ability to come up with unique products that will lock out the rivals in the market. It is significant for the fast foods to take note of the impact that the five forces have on acquiring of a competitive edge in the market. The food outlets need to take advantage of the available opportunities to be competitive in the market. Building and sustaining competitive advantage Superior efficiency Sustaining a competitive advantage can be arrived at through the efficient use of resources. Sustainability can be reached through the utilization of a limited number of inputs and still realizing of high outputs (Peppard Ward, 2016). A company that can gain a competitive edge in its production process gains the superior efficiency as compared to those that use excessive resources in the production of the same products. Superior efficiency can also be regarding the hours used and the labor costs that are incurred. The other factor relates to the quality of services that are rendered. Customers are moved by the availability of quality services. Customers always want to get the value of their money. In the case that a company produces quality services, then it is in a position to gain a positive corporate image from its customers (McGrath, 2013).The competitive edge is necessitated by quality services that are well priced. Excellent quality can act as a market barrier to the new entrants that reduce the competitiveness of the market, and thus a company can easily dominate its market. Innovation is imperative in the running of a successful business. Innovation can be regarding product advancement or changes in the processes that are involved in the business. Innovation is all about coming up with strategies that will make the customer more comfortable through the provision of services that better match their changing needs. Product innovation will ensure that a company always produces products that are feasible in the market (Saeidi et al.2015). Or products that better fit the dynamics that occur in the market. The processes that are involved should be those that are cost effective. That is the company should be able to be resource effective in the production of goods and services. A good example of implementing of innovation will be the Toyota Company, a company that has instigated a lean production system that has improved the productivity of the employees and at the same time creating a competitive advantage for itself through cost effectiveness. Customer responsiveness is the last factor that addresses the issue of competitiveness in the market. The customer should always be at the center of the company (Brocken et al.2014). Are the needs, values, requirements and the expectations of the customers should always be the driving force in the formulation and implementation of the strategies of the company. The goods and services that are produced should fully comply with what the customer wants or is looking for. It can be informed of prices, quality or convenience. References Ball, M. C. 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