Strengths: 1. The success of the Renco Group assets depends on the ability to focus the efforts on specific industrial sectors, focusing on solving technological problems and customer service (Deloitte, 2015). So that it brings superior customer value on niche markets in which it competes. 2. Work ethics and constant strive in optimizing its work activities have led Renco Services Division to become a reliable choice for first class clients such as General Electric, ABB, and ENI Group (Renco-Service Division, (n.d.)).
First of all, it is important to have clear what does strategy mean. According to Porter (2008) “strategy is the creation of a unique and valuable position, involving a different set of activities. Is creating fit among a company’s activities”. Moreover, we can say that “an action is strategic when it allows a firm to become better
Lastly demand conditions look at customer need and demand which must be produced by companies will have to produce innovative, high quality products early, this way competitive advantage will be met. Related and supporting industries, if suppliers industries exist in the country that are themselves internationally competitive, this can result in competitive advantage in the new industry, firm strategy, structure. Different nations have different management rule and regulations, which can either destroy or build its competitive advantage. If there is a solid internal competition, in this way it creates improved efficiency, making industries better international
2.3 TQM linked with Competitive Advantage Competitive advantage is a mastered key element that gives an edge to a business beyond what already exists in competition (Ehmke, 2008). Porter (1980) believed that competitive advantage is created through operations at either a relatively low cost or differentiation. Either way, a firm requires excellence on an aspect in order to gain competitive advantage. Competitive advantage denotes a firm’s ability to achieve market superiority. In the long run, a sustainable competitive advantage provides above-average performance.
A. Good research, development and innovation will have a positive effect on Threat of substitute products or services and Threat of new entrants. B. The ability to deliver high-quality products or services will have a positive effect on the Business Power. C. Large organizations are pursuing a differentiation strategy need to stay agile with their new product development processes.
However, the aggressive manner Tesco uses its resources and capabilities are in question. The illusion of loyalty helps strengthen Tesco’s vision for growth and diversification. The exploitation of its capabilities to distribute goods effectively is in question. Tesco’s strength is to exploits its resources and capabilities. Which is great for business and its shareholders.
The investment in human capital development is in line with Jay (1991) assertion that the human resources of an enterprise are strong sources of competitive advantage while the implementation of the principles of diversity in the workforce will create an environment of creativity and innovation (Slater at al., 2008). The objective of Dangote is to be the largest producer of cement in Africa and can further be achieved by the acquisition of smaller competitors which forms part of its long-term goal. Corporate social responsibility efforts are also at the epicenter of the strategic intent of the Cement because they understand that the business can’t exist without stakeholders, customers, bankers,
3.2 RANGE OF STRATEGIES THAT CAN CONTRIBUTE TO A BUSINESS COMPETITIVE ADVANTAGE When a business thrives in gaining competitive advantage, it often sets eyes on a manifold of strategies that aim to em-better its image and its competitive positioning. It focuses on strategies that may help increase its rate of consumers acquisition, retention and satisfaction; strategies of industry and competitors analysis. Moreover, it sets eyes on those strategic process to build strong investments portfolios ( Liquidity) that can help establish longevity and leadership in the market. Competitive advantage inevitably leads to faster, continual exponential growth, increased sales, market share gains and overall business profitability. Competitive
For today’s challenging environments, human capitals are playing an importance role in the organization in order to have dominant position in competitive advantage. Human capital developments are indispensable because it is unique and valuable assets for successful today. Undeniable, practices of human capital development is a significant process to employing and selecting the qualified employees to the organization. So, have a systematic functions and proper practices in strategic way not only can retain and attract the employees, it also can let the organization more understand the demand of employees. Development activities, empowerment, training and energetic participation to decision making process are the examples of human resources management (HRM) practices, all of these can assist employees’ to creative innovative ideas and let them active in innovation process.
The threat for TESCO and AEON is able to overcome by their strength. So that, the impact from threat able to face and solve it smoothly by this two firms. 5.0 CONCLUSION Based on the SWOT analysis, there a lot of information have been gain and able to compare between the firm that selected such as TESCO and AEON. TESCO and AEON is a huge competitive firm in retailer market and it able to contribute to economic growth in Malaysia. The SWOT analysis able to develop awareness and planning for future decision for that both firms.