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. S.C. Wheelwright (1989) suggested that quality is an important source of competitive advantage.
TQM and business excellence are parallel terms; however the concept of excellence
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Addae-Korankye (2013), added that focus on quality increases customer value and leads to both cost leadership and adding value through quality.
Ehmke (2008) identifies potential strategies to achieve differentiation; among which were Quality, Value Addition, and Efficient operating procedures, as shown in Figure 2.
Quality is the most essential factor in delivering competitive advantage. It has to be delivered among products and services consistently, beyond the physical component. It is the most vital determinant of profitability because high quality goods and services provide a competitive edge (Evans & Lindsay, 2013).
Quality is also positively and significantly related to a higher return on investment for almost all kinds of product and market situations (PIMS Associates, Inc., 1986). Firms that focus on quality, achieve better employee participation and relations, improved product and service quality, higher productivity, greater customer satisfaction, increases market share, and improved profitability (Evans & Lindsay,
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During the 1980s up to the mid-1990s, Qatar experienced an economic downturn due to its overdependence in the oil industry. From this hindsight, Qatar has recently been reducing its reliance on oil and gas by exploring and developing other industries as potential strengths of the country.
Presently, Qatar is the largest financial center in the Gulf Cooperation Council (GCC) region (The Peninsula, 2014). Its capital city, Doha, serves as the business center. SMEs represent the backbone of the Qatari economy and accounts for 93.6 per cent of the manufacturing industrial firms in the country and provides 70.2 per cent of employment in the Qatari industrial sector (Gulf Organization for Industrial Consulting, 2013). It is also interesting that more than 95 per cent of the workforce in Qatar are expatriates (Shams, 2014); thus, developing a globally diverse environment.
With an open and rapidly growing economy and a business friendly tax environment, Qatar is a huge attraction for both local and foreign investments that expand its industrial and economic development (Doing Business In Qatar,
According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. TJ is Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the company’s strategy. Recommendations and
Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage
The development of the world’s largest airline terminal was an impeccable example. The Sheikh’s forceful strategies targeted at turning Dubai into a global business hub were almost yielding fruits by 1970s, as Dubai’s population has grown rapidly to make the city one of the most populous business hubs in the world. The city’s population grew rapidly from the 1960s to 1980s, thanks to Sheikh’s good economic development strategies that expanded the city. Applegate and Norris (2016) assert that by 2014 the city had over 2 million residents. A good population is favourable for the success of businesses, especially the type of businesses that depend on local customers.
This country is known as one of the wealthiest country in the world. They are on the list of highest GDP per capita due to the export of oil and gas to different countries. Qatar is also known as one of the country with the best airlines which is Qatar airways that is awarded with 5 star rating y Skytrax. All this information all comes down that money is what makes people happy is Qatar. Weiner stated as he traveling in Qatar that, "Maybe the secret to happiness is money.
It can be said that by means of organisation’s competitive strategy, it can achieve an upper hand in the business market over its rivals. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. An efficient strategy can help an organisation to achieve an upper hand through commitment to its strategic objectives and the capacity to significantly expand execution and profitability (Bartlett & Ghoshal,
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
Often media points to Apple’s massive cash reserve as a key strength that the company could leverage to become even more successful (Ferrell & Hartline, 2014). If Apple asked, what should Apple do with the cash (Ferrell & Hartline, 2014)? Apple could better meet the consumer's needs and wants by strategically investing that cash for the company’s future by developing and leveraging a competitive advantage strategy (Ferrell & Hartline, 2014). A competitive advantage stems from strengths the organization possesses and weakness the competitor possesses (Ferrell & Hartline, 2014). Having a competitive advantage over their competitors can also be based on perception rather than reality (Ferrell & Hartline, 2014).
Bark & Co. is a company founded by Matt Meeker, Henrik Werdelin and Carly Strife. The company owns several products – the initial and probably best known is ‘BarkBox’. Due to BarkBox’s success, the company Bark & Co. was created, which dedicates to build products that promote health and happiness of dogs everywhere (BarkShop, 2014). It was launched in December 2011 and had reached $25M in revenue by June 2013 with 100,000 subscribers (Fueled, 2013). Like illustrated in Figure 2, Bark & Co. has different businesses: ‘BarkPost’ is a dog content website that has the capability of receiving over 400,000 visitors monthly, ‘BarkCare’ is a dog health mobile application that can be reached 24 hours 7 days a week for vet consultation service (D’Onfro,
Strengths: The major strength of The kingdom of Saudi Arabia relies heavily on its strategic location. As it is the birthplace of prophet Mohammed and the birth of Islam, it has great antiques and history that is appreciated by Arabs, Muslims and everyone around the world, as the history of the Arab peninsula goes back to more than 1400 years. This provides tons of historic information and antiques that will attract tourists around the world. Another strength is the constant visits from Muslims throughout the year, which will motivate the Saudi government to be on a constant road to development to provide ease for visitors when performing religious rituals.
Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. There are three types of competitive advantage. a) Cost leadership strategy occurs when a firm a delivers the same services as its rivals but at a lower price. b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals. c) Focus strategy is a focused approach requires the firm to concentrate along one specific segment either a cost leadership or a specialization strategy.
Expanding into Latin America New markets for any company can be anywhere in the world and since this world every day is becoming more globalized every single company around the world is targeting moving into new places and being able to expand their horizons around the world. Latin America is a region that is becoming more and more approachable to companies from around the world. It provides with a fast variety of raw materials and labor possibilities for them to exploit. Before any organization moves into a new market it must first evaluate it and scan its possibilities in order to determine the best option for it. The following is a description of this process and the best options that the company selling high quality distance measuring technology
The value chain equates to the internal activities that a company employs in transforming its inputs to outputs; this helps with the improvement of activities, helping the company to achieve competitive advantage. In the analysis of H&M’s organizational capabilities the value chain analysis would show that with viewing the internal activities; this analysis would show where the company’s competitive advantages as well as disadvantages lies. This analysis would then depict the company’s core competencies. When a company is said to be competing through its cost advantage; it would most likely try to carry out its internal activities at a much lower cost than its competition would want to.
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
In 1985, Harvard Business School Professor Michael Porter published his new book “The Competitive Advantage” which focuses the organisation internal environment. In this book, along with an in depth analysis of the competitive strategies which are Cost leadership, differentiation and Focus, he also concentrates on the firm’s value chain. 1. Cost Leadership: In cost leadership, an organisation aims to become the low cost provider in its industry. Examples are Aldi, Lidl, Ryan Air etc 2.
Mr Price has a wide range of competitors such as H&M, Woolworths and Pick ‘n Pay. A competitive advantage describes how the business has benefits or strengths over its competitors in the market. By having this, the competitors don’t seem as a threat to the company. It’s used