Competitiveness How Effectively an Organization Meets the Wants and Needs of Customers Relative to Others That Offer Similar Goods or Services
Competitiveness How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
Business compete using MARKETING 1. Identifying consumer wants and/or needs is a basic input in an organization’s decision making process, and central to competitiveness. The idea is to achieve a perfect match between those wants and needs and the organization’s goods and/or services.
2. Price and quality are key factors in consumer buying decisions. It is important to understand the trade-off decision consumers make between price and quality.
3. Advertising and promotion are ways organizations can inform potential customers about features of their products or services, and attract buyers.
Business compete using OPERATION 1. Product and service design should reflect joint efforts of many areas of the firm to achieve a match between financial resources, operations capabilities, supply chain capabilities,and consumer wants and needs. Special characteristics or features of a product or service can be a key factor in consumer buying decisions. Other key factors include innovation and the time-to-market for new products and services.
2. Cost of an organization’s output is a key variable that affects pricing decisions and profits. Cost-reduction efforts are generally ongoing in business organizations. Productivity(discussed later in the chapter) is an important determinant of cost. Organizations with higher productivity rates than their competitors have a competitive cost advantage. A company may outsource a portion of its operation to achieve lower costs, higher productivity, or better quality.
3. Location can be important in terms of cost and convenience for customers. Location near inputs can result in lower input costs. Location near markets can result in lower transportation costs and quicker delivery times. Convenient location is particularly important in the retail sector.
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Business compete using MARKETING 1. Identifying consumer wants and/or needs is a basic input in an organization’s decision making process, and central to competitiveness. The idea is to achieve a perfect match between those wants and needs and the organization’s goods and/or services.
2. Price and quality are key factors in consumer buying decisions. It is important to understand the trade-off decision consumers make between price and quality.
3. Advertising and promotion are ways organizations can inform potential customers about features of their products or services, and attract buyers.
Business compete using OPERATION 1. Product and service design should reflect joint efforts of many areas of the firm to achieve a match between financial resources, operations capabilities, supply chain capabilities,and consumer wants and needs. Special characteristics or features of a product or service can be a key factor in consumer buying decisions. Other key factors include innovation and the time-to-market for new products and services.
2. Cost of an organization’s output is a key variable that affects pricing decisions and profits. Cost-reduction efforts are generally ongoing in business organizations. Productivity(discussed later in the chapter) is an important determinant of cost. Organizations with higher productivity rates than their competitors have a competitive cost advantage. A company may outsource a portion of its operation to achieve lower costs, higher productivity, or better quality.
3. Location can be important in terms of cost and convenience for customers. Location near inputs can result in lower input costs. Location near markets can result in lower transportation costs and quicker delivery times. Convenient location is particularly important in the retail sector.
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