Competitiveness,
Strategy, and
Productivity
Prepared by: Ms. Jo Ann R. General
Competitiveness,
Strategy,and
Productivity
Competitive
kaba?
COMPETITIVENESS
Companies must be competitive to sell
their goods and services in the
marketplace.
Competitiveness is an important factor
in determining whether a company
prospers, barely gets by, or fails.
Q: How will you do it?
COMPETITIVENESS
Marketing influences competitiveness in several ways:
2. price and 3. advertising
quality and promotion
1. customers needs
and/or wants
COMPETITIVENESS
Marketing influences competitiveness in several ways:
1.Identifying consumer wants and/or needs is a basic input in an
organization’s decision-making process, and central to competitiveness. The
ideal 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.
COMPETITIVENESS
Operations has a major influence on competitiveness through:
1. Product and service design
2. Cost
3. Location
4. Quality
5. Quick response
6. Flexibility
7. Inventory management
8. Supply Chain Management
9. Service
10. Managers and workers
COMPETITIVENESS
Operations has a major influence on competitiveness through:
1. Product and service design. Special characteristics or features of a product
or service can be a key factors including 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 an ongoing
business goal. Productivity is an important determinant of cost.
Organizations with higher productivity rates higher than their competitors.
COMPETITIVENESS
Operations has a major influence on competitiveness through:
. Location can be important in terms of cost and convenience for customers.
3
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.
4. Quality refers to materials, workmanship, design, and service. Consumers
judge quality in terms of how well they think a product or service will satisfy
its intended purpose. Customers are generally willing to pay more for a
product or service if they perceive it to be a higher quality than that of a
competitor.
COMPETITIVENESS
Operations has a major influence on competitiveness through:
. Quick response can be a competitive advantage. One way is quickly
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bringing new or improved products or services to the market. Another is
being able to quickly deliver existing products and services to a customer
after they are ordered, and still another is quickly handling customer
complaints.
6. Flexibility is the ability to respond to changes. Changes might relate to
alterations in design features of a product or service, or to the volume
demanded by customers, or the mix of products or services offered by an
organization. High flexibility can be a competitive advantage in a
changeable environment.
does people rent out movies
before?
MSE
The traditional way of renting out movies
Locating a rental store
Driving back home Driving to the store
Searching movie titles for
desirability and availability
Driving back to the rental store
Paying for the movie
Driving back home to watch the movie
MSE
On August 29, 2022 turned 25 years old.
When Reed Hastings and Marc Randolph founded
in 1997, I'm sure they had no idea that they were embarking on a
multibillion-dollar venture.
Their business idea, which was simply an upgrade to the DVD
rental business, has grown to become one of the world's largest TV
and film studios.
Today, Netflix is worth more than $200 billion and has more
subscribers than all of America's cable TV channels combined.
Netflix Process:
RIP. SORT. REPEAT
MSE
Netflix introduced the internet-based ordering, shipping, and return system.
The consumers will simply access their online
account
Select movies for their queue
Then wait for the delivery
After viewing the DVD, consumers
repackage the disc and will just simply
drop it back in their mailbox.
Once the discs were scanned upon arrival, an
automatic receipt email was sent to the individual
customer.
Employees then inspect the discs by hand; they verify
the titles, look for physical damage, and remove
problem discs from the process. The discs are then
hand cleaned and sorted into bins, which are taken for
repackaging or recoding - then either sends them
back to the mail sorter for its next destination or
place them back to the inventory.
Process: RIP. SORT. REPEAT
Before, Netflix typically ships 2.2 million discs
everyday to its over 10 million customers.
COMPETITIVENESS
Operations has a major influence on competitiveness through:
. Inventory management can be a competitive advantage by effectively
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matching supplies of goods with demand.
8. Supply chain management involves coordinating internal and external
operations to achieve timely and cost-effective delivery of goods throughout
the system
9. Service might involve after-sale activities customers perceive as value-
added, such as delivery, setup, warranty work, and technical support. Or it
might involve extra attention while work is in progress, such as courtesy,
keeping the customer informed, and attention to details.
COMPETITIVENESS
Operations has a major influence on competitiveness through:
0. Managers and workers are the people at the heart and soul of an
1
organization, and if they are competent and motivated, they can provide a
distinct competitive edge by their skills and the ideas they create. As simple
as answering the calls promptly and properly is very important in the
customer service.
WHY SOME ORGANIZATIONS FAIL
Organizations fail, or perform poorly, for a variety of reasons. Being aware of those
reasons can help the managers avoid making similar mistakes. Among the chief reasons
are the following:
1. Neglecting operations strategy
2. Failing to take advantage of strengths and opportunities,
and/or failing to recognize competitive threats.
3. Putting too much emphasis on short-term financial
performance at the expense of research and development
4. Placing too much emphasis on product and service
design and not enough on process design and
improvement
5. Neglecting investments in capital and human resources
6. Failing to establish good internal communications and
cooperation among different functional areas
7. Failing to consider customer wants and needs
Strategiesand
Tactics
STRATEGIES & TACTICS
If you think of goals as destinations, then strategies are the
roadmaps for reaching the destinations. Strategies provide
focus for decision making.
Tactics are the methods and actions used to accomplish
strategies. They are more specific than strategies, and they
provide guidance and direction for carrying out actual
operations, might think of tactics as the “how to” part of the
process and operations as the actual “doing” part of the
process.
STRATEGIES & TACTICS
Here are some examples of different strategies an
organization might choose from:
Low cost
Specialization
Newness
Flexible operations
High quality
Service
Sustainability
STRATEGIES & TACTICS
Here are some examples of different strategies an organization might
choose from:
Low cost. outsource operations to third-world countries that have low
labor costs.
Specialization. Focus on narrow product lines or limited service to
achieve higher quality.
Newness. Focus on innovation to create new product or services
Flexible operations. Focus on quick response and/or customization
High quality. Focus on achieving higher quality than competitors
Service. Focus on various aspects of service
Sustainability. Focus on environmental-friendly and energy-efficient
operations
PRODUCTIVITY
is an index that measures output (goods and services) relative to the input
(labor, materials, energy, and other resources) used to produce it.
A productivity ratio can be computed for a single operation, a department,
an organization, or an entire country. In business organizations, productivity
ratios are used for planning workforce requirements, scheduling equipment,
financial analysis, and other important tasks.
Productivity as important implications for business
organizations and for entire nations. For nonprofit
organizations, higher productivity means lower costs; for
profit-based organizations, productivity is an important factor
in determining how competitive a company is.
Thank
You
