BS
Beena Shaji
Dr. Gast and Classmates
Based on the analysis of our selected organization, having the right strategy is the most critical requirement for organizations looking to gain and maintain sustainable competitive advantages. With the right approach, resources can be concentrated in areas of an organization that are valuable and highly likely to contribute to growth (Zhu & Liu, 2018). A clear strategy also ensures that all functions and activities are aligned with the plan, which increases the chances the organization has of achieving its goals and objectives. Using data to analyze critical areas of operations and make informed decisions is also essential if an organization succeeds in creating value for its stakeholders. Performance data on specific areas of operations can help management better evaluate their strengths and weaknesses and find ways of making improvements where needed.
Flexibility is also essential if a business is to keep making continuous improvements to its operations. Irrespective of a firm’s industry, market conditions keep changing from time to time, meaning a company also needs to adjust its strategy if it meets the needs of its customers. Businesses with flexible operations that can be changed easily will have an edge over those with more rigid operations (Lewis, 2019). A unique value proposition is also essential and can aid a business to stand out in highly competitive markets. For firms that operate in markets with few barriers to entry, the uniqueness of their products and their value, as perceived by customers, is a critical source of competitive advantage that determines how fast they can grow. Firms with highly specialized products that can meet customer expectations are more likely to stand out when compared to those with less differentiated products. Generally, numerous factors influence the chances of a firm gaining sustainable competitive advantages, but the strategy it selects is among the most critical determinants of its performance.
References
Lewis, L. (2019). Organizational change. In Origins and traditions of organizational communication (pp. 406-423). Routledge.
Zhu, F., & Liu, Q. (2018). Competing with complementors: An empirical look at Amazon. com. Strategic Management Journal, 39(10), 2618-2642.
Acknowledged(0)
REPLY
JSJillian Skulski replied to Beena ShajiSep 13, 2024, 12:58 PMHi Beena,I agree with your interpretation and have similar thoughts on my reflection from this course. To your point, a clear and operational strategy ensures an organization is operating effectively and efficiently while also achieving its goals and aligning with its mission and values. Throughout this course, it has been evident that corporate social responsibility (CSR), data and analytics, an in-depth understanding of the market and consumer behavior, and implementation of cost-effective initiatives are key elements that ensure competitive advantage and stockholder value are upheld. CSR and environmental sustainability have become increasing popular and a growing concern among consumers which is why it is designated as a key element (David & David, 2020). Analytic tools like the EFE, IFE, CPM, SWOT matrices help enable informed strategic decisions and improve opportunities which is also beneficial. an in-depth understanding of the market and consumer behavior is another key element. By determining individual consumer needs, companies are able to target specific market segments to ensure customer satisfaction which impacts competitive advantage. Supply chain refers to a distribution network of the individuals, organizations, resources, activities and technology involved in the creation of a product and providing it to the consumer. Supply chain is a vital process for organizations as it allows for optimization of the production cycle. This results in lower costs and increased efficiency which supports maintaining a competitive advantage. To your point, flexibility is another key element. This is crucial as it ensures an organization is willing and able to adapt to fluctuations in market trends and customer needs.
