Dimensions in the Competitive Priority

Juan Lopera

Operations Management

Homework #1

1. Nominate four companies that you think respectively take each of the four dimensions in the competitive priority. Use a few sentences to justify why do you think each of your choices emphasizes that dimension. (for example, you think ABC company takes quality as their priority, and you provide evidences to support your argument. On each of the four dimensions, you name a company.) 

2. Answer the following questions:

a) A firm set up inventory to make sure delivery. How does this choice affect flexibility? Do you think this will affect the quality? Why? And do you think this will affect cost? Why?

b) A company adopted advanced production technology to enable them to quickly and easily switch the production for different product models. Do you think this will usually affect the cost? Why?

Dimensions in the competitive priority.

In our world today, the highly competitive market that companies are constantly facing has made companies to prioritize different aspects of their business to fit and serve to specific demographics. The four concepts of priorities are; flexibility, cost, delivery, and quality. The following assignment shows an analysis of different companies and what are their priorities.

One company who has chosen competitive priority of flexibility is Netflix. They started as an alternative to video rentals in the digital industry. However, as the market grew and technology became a fundamental factor for many companies and due to outdated services, Netflix began to offer online streaming to their customers for a convenient monthly fee cost. There are other streaming services companies like Hulu and Amazon video that has gained market power in this industry. However, Netflix strategy to be unique led them to create their own licensed products and content. For example, one method Netflix uses to convey customer’s attention and gain market power is by partnering with T-Mobile. If you are a new or existing T-Mobile customer, you will access to Netflix on your device for free.

One example of cost priority is Walmart. In their mission statement, we can read “Saving people money so they can live better”. One of the goals that Walmart wants to accomplish is to help customers save money, this way customers will rely on Walmart and will be loyal to the brand. Walmart’s products cost is convenient; however, their quality or store looks are not essential for them. Given that there are similar companies who offer convenient products at a lower cost such as Target, Job Lot, JC Penny, Sears, Walmart manages to obtain lower prices for their products by obtaining better prices and offers from their suppliers.

Amazon priorities delivery of products and services as their method for competitive priority. They currently have Amazon Prime, a pre-paid membership that gives you efficient and quick 2-day free shipping. Even though they have added more services such as quick access to music, movie rental, or student prime accounts, their main goal is to guarantee customers that their products or services will be delivered rapidly.

In terms of quality priority.  Apple is one of the companies that has shown over the years their quality of their products. Apple’s slogan “Think Different” serves as the differentiator between companies who only sell an average product and there is Apple which focus is to make sure their products are of the high quality. Apple’s products are “perfect” their design, color, convenience, and functionally aligned with the latest technologies gives Apple all the credit in making sure that their customers have the best experience and feel elegant using their products.