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Operations Based-Strategy, Article Review Example
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Operations based-strategy assists small companies which may lack the benefits attributed to proprietary technology, size, established position or experience to outdo the companies of relatively large size with enhanced and sturdy competitive advantage and consequently being able to dominate the industry thus overtaking the big companies. Majority of studies conducted in this respect on this phenomenon attribute the success of the attacker to their effectiveness in identification of emerging markets coupled with introduction of new technologies. Applicable Operations base Strategy in this regard involves an accurate discovery of right “position” of a specified market and move to that particular market (Robert & David, 10). The attacker may also exploit available technologies and offer stiff competition for the clients common to attacker and the competitor.
In this scenario, the most important contributor to the success of the attacker involves operations-based advantage. Operations effectiveness plays a vital role in reinforcing the present competitive position of an organization. However, if it is anchored on capabilities which are entrenched in the human resources in the organization as well as operating processes, then imitation becomes inherently unachievable. As a result, the roots of sustaining a competitive edge are achievable even in the situation that the firm executes similar competitive techniques to the ones applied by the competitor. Additionally, this is an invisible form of competitive advantage in as far as the competitors are concerned in contrast to the one anchored on staking through differentiation of a competitive position. Consequently, they lack the ability of quick response. This form of competitive edge becomes sustainable on account of application of better and enhanced operating skills. The difficulties associated with duplication as well as the invisibility of this situation to the competitor enhance its effectiveness.
Another critical operations based-strategy involves positioning which implies to attempts of appealing to diverse needs of the clients. The attraction of clients to services and goods are based on different attributes. If a company realizes that, cost is the most important attribute that promotes sales, then it is only prudent to reduce the prize of a product or service so that customers are attracted to the company. This is an operations based-strategy that has been applied at Southwest Airlines, DJC as well as Wal-Mart (Robert & David, 13). If customers are appealed by features of high quality, then it is the obligation of the company to avail exactly that. Other important attributes that can form the basis of a competitive edge include innovativeness, flexibility, speed of response and dependability among others.
Capability of becoming superior at “the same game” is yet another operations based-strategy that a company can use to achieve a competitive edge. A chosen strategy may be executed with a high degree of vigor and humor so as to create an edge against the competitor. Through building of experience belligerently coupled with development of exceptional capabilities in the organization, achievement of sustainable competitive advantage over the competitor has been a reality among most organizations. The premise behind this operations based-strategy is the long run success achieved by organizations on the basis of performing specific tasks in better way relative to the competitors.
It is therefore the responsibility of organizations to evade a situation of confinement of their improvement endeavors on identification and emulation of best practices (Robert & David, 23). Instead, they must put all their efforts in identification of new practices.
Works cited
Robert Hayes & David Upton. Operations-Based Strategy. California Management Review Vol. 40, NO. 4, 1998.
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