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The Relations Between Competitive Advantage and Strategic Performance

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Submitted By keemostaer
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Mangers and organizations must perform effectively to gain and sustain a competitive position in the market place, using one of the five essential types of performance, cost, quality, speed, innovation, and service. These five performance dimensions, when managed well, deliver value to the customer and provide competitive advantage to you and your organization. (the fundamental success drivers)( the sources of competitive advantage)
Innovation:
Is the introduction of new goods and services. Firms must innovate or it will die.
1. Firms must adapt quickly to changes in consumer demands and to new competitors.
2. Products don’t sell forever.
3. Firms have to be ready with new ways to communicate with customers and deliver the products to them.
For example, restaurants in the black. Philips adapted quickly to changes in consumer demands, from light bulbs to X- ray machines, recorded albums and then semiconductors(microchips) and medical equipment and LED- based lightening systems.

Quality:
Is the excellence of your product( goods or services). The traditional approach was to check work after it was completed and then eliminate defects. Using inspection and statistical data to determine whether products were up to standards. But now there is a new approach includes
1. Preventing defects before they occur.
2. Achieving zero defects in manufacturing.
3. Designing products for quality.
4. Customization like Starbucks. De caffeine coffee.
The goal is to solve and eradicate from the beginning all quality-related problems and to live a philosophy of continuous improvement in the company operations.
Quality can be measured in term of
1. Products performance.
2. Customer service.
3. Reliability.
4. Conformance to standards.
5. Durability.
6. Aesthetics.

Service:
The speed and dependability of service with which an organization delivers what

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