Competitive Advantage Through Operations Group I

Competitive Advantage through Operations

Group I Amrita,Anchal,Akansha,Akhil,Charu MBA Biotechnology Sem III-B

What is competitive advantage? “Advantage that a firm has over its competitors” Distinctive competence What you can do that others cannot What you have that others don’t

Michael porter-competitive advantage Three methods for creating sustainable competitive advantage1. Cost leadership 2. Differentiation 3. Focus (economics)

Sources of competitive advantage

Model for Developing Competitive Advantage

Environment External :1.Threats : Competitors’ action & govt. regulations 2.Opportunities : Global Market & Technology Internal :1.Strength in Material resources, people & products 2.Weakness in Material resources, people & products

Business Process

Competitive Capabilities

1. Strategy Developmen t 2. Product Developmen t 3. Developing system to produce services & goods 4. Order fulfillment

1. Flexibility 2. Productivity 3. Building Quality into the product 4. Time 5. E-business

Customer Requiremen ts 1. Meeting Specific customer needs 2. Quick response 3. Product performanc e and features 4. Product quality (fitness for use) 5. Price 6. Service

C U S T O M E R R E Q U I R E M E N T S

Meeting specific customer needs Quick Response

Product performance & features Product Quality

Cost

Service

Flexibility

Quality

Productivity

Time

E-business

Competitive Capabilities Flexibility Ability to change between products or customers with minimal costs & delays

Productivity Ratio of the output achieved divided by the inputs consumed to achieve those outputs Quality

Quality

High

Cost

High

Low

Low

Limited Market appeal because of cost

Complete Failure

Ideal Product

Limited Market appeal because of Quality

Competitive Capabilities Time End to End time from generation of new product concepts to the delivery of finished products Ex – Third party Inventory rooms

E-Business Use of electronic platform to conduct company business Application of computer & IT to design, plan & manage operation & to track transaction between organization & its suppliers and between organization & its customers

Case Study : Competitive Advantage Through Operations Portakabin limited , U.K Specialises in producing modular buildings, operating 45 hire centres across the UK, employing over 1,300 people Operates in an extremely competitive market Market lead with 15.4% of the overall UK market It has 3% of the European market , competeting with big players like GE capital, and Algeco

Case Study contd… It has achieved competitive advantage through innovative product development Portakabin's commitment to its customers includes :– – – – – –

Answering calls within four rings A response to enquiries within 24 hours The building to be delivered on time The building to be provided to the agreed contract sum Giving a rectification response within 48 hours Including customers in a customer care programme

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