Considering strategic choice - operation strategy, Operation Management

Considering Strategic Choice - Operation Strategy

(Strategic analysis will be covered in Strategy - Analysis and Evaluation). 

The following points are an extract from Porter (1985): 

1. Find areas of value the buyer views as important  

2. Create value and communicate this in credible ways 

3. Bear, but minimise the cost of uniqueness; find a basis of uniqueness which is difficult to emulate 

4. Manage the issue of cost and differentiation successfully 

5. Sustain differentiation by innovating new sources of buyer value. 

Finding areas 'of value' outlined by Porter (1985) is also supported by Kay (1993) who describes the rent model of the firm. He suggests that to understand why some companies are successful and others are not, it is necessary to understand the distinctive competencies of the firm.

The analogy he uses is of a farm. One farm has excellent land and therefore produces and receives a price premium. Whereas a farm with poor land cannot produce or receive the same income as the farm with the best land. Hence the difference in income, referred to as rent, is related to the land (resource). This then is the basis of differentiation. Kay argues that distinctive competence may come from reputation or organisational relationships within the value chain (he refers to this as the architecture of the firm). Reputation is usually based on an earlier competence such as quality. This relates well to operations strategy and is translated as competence or operational capability and is very much the purpose of the operations function. Operations must deliver the service or product by which the consumer will ultimately judge. It is more important to be doing the right thing, rather than things right.

Posted Date: 3/18/2013 1:53:50 AM | Location : United States

Related Discussions:- Considering strategic choice - operation strategy, Assignment Help, Ask Question on Considering strategic choice - operation strategy, Get Answer, Expert's Help, Considering strategic choice - operation strategy Discussions

Write discussion on Considering strategic choice - operation strategy
Your posts are moderated
Related Questions

Companies are now more and more interested in using intangible assets and human capital as a way to gain an advantage over competitors. True False

From "Matching Supply with Demand" Cachon/Terwiesch (Inventory Cost) A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the e

I have an assignment this week to read "Ramada Demonstrates its Personal Best" on the 'Companion Website.' Do I have access to questions/answers that go along with that?

Create a 10-12 slide presentation describing the data types. Include the following in your presentation? Introductory slide? Slide for each data type (containing a definition of th

If a network manager wanted to connect his Ethernet LANs via ATN, what transmission technique must be implemented on a ATM link? a. TCP/IP encapsulation b. LAN emulation c

Heckman of Saul and Saul Consultants has get a request from Deborah, the head of Human Resources, to make an interactive icon-and-menu-driven software package to be used by the adv

Select one chronic disease such as diabetes or heart disease. Assume that you are working for a county public health department with staff nurses and physicians. You want to run a

What is your understanding of the term: Brand Equity?

An important factor used to determine the phases in a project life cycle are the control needs of the organization(s) involved in the project. True or False