The more competitive companies are in the markets, the fewer strategies are available to any company. All companies become reactive rather than proactive, unable to impose their will on the market. They can't control the price, they can't differentiate their product. Competition denies them the resources to acquire other businesses. In reality cost positions differ, often significantly, and products are perceived as different, sometimes so different that some are branded. This generates both the scope and resources needed for acquisitions, aggressive pricing behavior, or a major marketing campaign. The specific recommendations the Board is looking for are how to: A. make the organization more competitive: The primary outcome of having a competitive strategic advantage is clear. This advantage translates into the positive result of profits obtained by our company higher than the industry average, instead of a loss lower than that obtained by others. This does not necessarily mean a higher than normal profit as this depends on the nature of our industry. It is easy to recognize when a competitive advantage exists, when one of our companies competes with another company, for the same customers in the same market, is able to obtain a realized or potential profit higher than that of its competitors, or a loss minor. Provided the accounting is accurate, it is not difficult to identify the company with a competitive advantage. The result of better financial performance is made possible by the key characteristic of any competitive advantage, the greater utility or value given to the customer by a company. Customers purchase our service in greater numbers or at a higher price because of this increased benefit. Competitive advantage is therefore the ability to satisfy our customers better than our competitors could. The causes for the existence of such an advantage reflect the combined ability to recognize opportunities and then position the company accordingly, and produce what is desired at a cost and therefore at a price which is acceptable. Both of these skills are the result of the appropriate application of the key competencies possessed by the company.B. provide high quality customer services: The achievement of entrepreneurial objectives by the company requires, for its success, adequate management inputs, including high quality ones. Many of these management inputs involve specialized knowledge of functional areas. The proportion of entrepreneurs and managers needed within an enterprise, or even the desirable combination of these characteristics within the same individuals, can vary greatly.
tags