Operations Management Competitive Priorities

Question :

What determines the choice of the competitive priorities that a company should emphasize for its key processes? Support your answer with one or more examples. 

Answer :

The effort to excel in all of the nine competitive priorities is not suggested because it is quite resource intensive and does not generate the same level of benefits to the company. Each of the competitive priority has its own weightage and it depends on the competitive scenario in which the company is operating (Ward et al, 1998). The primary factors that should be considered when selecting a competitive priority are the competition and the preference of customers. As far as funding is required, a company arrange for the required funds through loans or by selling shares. But the key is to understand where to invest and why to invest.

Understanding these two factors with examples can help understand it appropriately. It is possible that customers in a particular market prefer faster delivery to their door step even if the cost they have to pay for the product is of premium level. Now, in order to cater to these customers successfully, the companies operating in this market have to align their supply chain and whole operational strategies in a way that they deliver the purchased products to the customers as fast as possible (Długosz, 2010). Here, if a company decides to invest in other priority like reducing cost of operation to reduce product price or increasing speed of customization, then it will be of no use. It is because customers are not looking for these things. Customers will only go to the companies who are delivery faster than anyone else. So in this circumstance, the company has to ensure that it invests majority of its efforts and resources to become faster than others, because it is what that will ensure success.

In a similar manner, all other priorities can only be focused based on the circumstances in which the business is operating. Some aspects have to be taken with utmost urgency and priority and others can be just ignored. However, there is no doubt that the competitive scenarios and customers preferences change with change in the environment. Thus, the company has to stay on foot and prepared to change its strategy.

Few of the competitive priorities in this scenario can be on time delivery, delivery speed, top quality, and low cost operations. These things will not only ensure that the customers get the perishable items as quickly as possible, it will also ensure that they get it at the lower cost. It is quite understandable that delivering to home will require investment of additional cost in human resources and delivery equipment and mechanism. However, there are ways that the can be employed to ensure that whatever is done stays within the efficient and effective utilization of resources. The minimal waste of time and resources can be helpful in meeting the needs. As for instance, customers from one area can be catered in combined format instead of sending multiple delivery boys to those doors. The saved costs can be passed on to the customers in the form of attractive offers. Long distance travelling often spoil perishable items, thus focus on quality will also be required. Also, as the items are perishable, thus it is obvious that the customers would also want it delivery to them as soon as they make the purchase (Jie et al, 2015).