Managing Operational Effectiveness

Essay by v0504University, Master's January 2007

download word file, 18 pages 3.0


Nowadays, both global and local competition among enterprises is very interesting to be observed. Companies are offering their products and services to customers in many different ways. Many of these companies are offering or very similar product or service to what their competitors do in the market. This is where the idea of having competitive advantage starts to kick-in and do what it is meant to do. This view is also supported by Kandampully (2000) that says the competitive advantage has been increasingly evident, with so little to differentiate or distinguish the competing products or services. For an example, now there hardly any difference between products of two giant televisions set companies - Sony and JVC. The main difference lies at the level of service given by the two different companies to better serve the customer. Argued by Gronroos (2006), the service has become a very important integral component on most manufactured products and also a part of the source of sustainable and strategic competitive advantage.

Some companies' committed using service as its competitive advantage while others are using innovation as the competitive advantage. Before going any further, the following paragraphs will discuss about the definition of Competitive Advantage and its fascinating world surrounding this term. Later from the explanation, the importance of having competitive advantage as one of the most important marketing tools for any company will also informed.

Passemard & Kleiner (2000) believed the change in the competitive advantage is the way the company handles the activities. The activities or the functions of a company can be divided into different activities such as Solicitation of customers by sellers, conception, realization of new products from R&D department, and maintenance. These activities are part of the adding value to the end users.

Still related to the competitive advantage, this...