Discussion topic Essay Example
Evaluate the competitive advantage of an organization of your choice using the building blocks of competitive advantage. To what extent would you agree that their competitive advantage is sustainable? Justify your answer.
Competitive advantage as related to business is a concept that shows how competitive a particular business is in comparison to its competitors. In the evaluation of competitive advantage, a number of factors are determined. These factors could be internal and specific to a particular company or they could be rallied to the industry. This paper will offer an analysis of Microsoft Corporation through looking at its operation dynamics.
Microsoft company comparative advantage
Microsoft is among the world’s leading companies in the manufacture and sale of computer software (Microsoft website 2016). The company has specialized in the design, manufacture and sale of operating systems. Microsoft enjoys a fair competitive advantage in this market through a number of angles as described in the following paragraphs.
The capital advantage
The company has a lot of resources to implement its ideas and ensure that its goals are met. These resources range from monetary to intellectual capacity. The company is rated as the best grossing company in this industry. Zhang (2011, p.13) notes that positioning and resource endowment are the two important factors that affect competitive advantage in China as well as across the globe particularly in the very competitive IT industry.
The management advantage
Duncan et al (1998, p.6) argue that management is vital for any company to succeed and without proper management, any company is doomed to fail. Microsoft is one of the best managed companies in the world. This enables the company to achieve its goals with ease.
The size advantage
Its sheer size enables the company achieve advantages in form of allocation and sourcing raw materials. The company is able to source these materials at a considerably lower price than its competitors.
Good quality products
Microsoft Company has the reputation of making quality products. This has created a lot of goodwill among its customers. The reception of its products in the market has been good because of impeccable quality.
Evaluation and justification of the competitive advantage
Microsoft’s competitive advantage is justifiable as well as sustainable. The company is in a position to keep being the world leader in the creation and manufacture of the computer software. To be a market leader, a company needs to have a solid background in form of finances and market capitalization. Without enough resources to explore new products and new markets, it would be hard for these companies to achieve their competitive advantage. Microsoft Company has enough resources to ensure that it is always abreast with new innovations and trends in this market. This is what makes their competitive advantage seem justifiable.
Discussion topic : Using the theoretical concepts, critically evaluate (300 words) the business level strategies of Coke.
Business level strategies
Business level strategies (BSL) is a concept that shows how companies make decisions that influence their competitive advantage. In other words, the business level strategies are those strategies that affect the business on a unit level. These strategies define how specific units affect and support overall business levels.
The Coca Cola company business level strategies
Coca Cola Company is renowned across the globe for being among the market leaders in the production of non alcoholic beverages (Coca cola company website, 2016). The company operates as a multinational with sub-branches and centers as well as factories spanned out across the globe. To be able to identify the business level strategy, it would be important to treat each centre as a business unit. All these units integrate seamlessly with the company’s corporate strategy to ensure that the company achieves its goals.
One of the most prolific and common business level strategy that the company employs is that of differentiation of prices across its centers. The company also keeps on changing its branding in response to customer tastes and preferences. For instance, the company has changed the shape of its bottles and repackaged them as changes in customer preference occurs. People want products that they can appreciate and ones they feel gives them both class and value for their money (Machulskyi, 2012, p.6). In a bid to keep up with these ever changing demands, the company has to keep on re-inventing itself.
A lot of marketing and advertising goes into the promotion of coca cola products. Lengarak et al (2004,p.81) state that promotion is one of the core business level elements that any company should employ if they desire to stand out from their competitors. Coca cola company employs this strategy basing its decision on the scope, cost and scale of operation for marketing based on the specific business unit and intensity of competition. The higher the competition the higher the budget for promotion is. Being relevant and always visible in the eyes of the potential buyers is a very crucial element. This is one of the decisions made at a corporate strategy level in this company but it is influenced by the business level strategies.
Coca cola company website (2016). About us. Retrieved from www.cocacola.com
Langerak, F., Hultink, J., and Robben, H. (2004). The impact of market orientation,
product advantage, and launch proficiency on new product performance and organizational performance, Journal of production innovation management, 21,pp.79-94.
Duncan, J., Ginter, P and Swayne, L. (1988). Competitive advantage and internal
organizational assessment. Academic of management executive, 12(3),pp. 6-16.
Machulskyi, I and Bogomyagkov, Y. (2012). Corporate business level strategies at
MNEs. A managerial practice view. Jonkoping: Jonkoping University. pp. 2-53.
Microsoft company website (2016). About us. Retrieved from www.microsoft.com
Zhang, X. (2011). The competitive advantage analysis of the telecommunication
corporation after the restructuring of China’s telecommunication industry in 2008-case study of China mobile communication corporation. Scania:Lunds University. pp.1-47.
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