June 21, 2010
A competitive advantage is the ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors (Jones/ George, 2009.). There are four main components in creating a competitive advantage, efficiency, quality, innovation, and responsiveness to customers.
The main building block is having an outstanding efficiency to customers. A manager could become more efficient in their business by having less people working, but having them doing more than one task; the manager could save the consumer money because they are creating less labor and more output. The second building block is having exceptional quality. Some companies prefer to have the best material there is and are willing to pay for the best. Managers have to make sure that their employees know the importance of doing things by procedure to have a good product or service. The third building block is being remarkable with innovation. Being creative and trying new things is a great tool for a manager. Keeping your employees energetic and excited about what they are doing makes the employees happy and can create a good atmosphere for customers to want to return to the business. The fourth building block is the responsiveness to customers. Most managers know that the customer should always leave the building satisfied. The main reason is that you want that customer to return. Another reason is that for every customer that has a bad experience at a particular business, the customer will tell any and everyone that will listen. Not only will the company lose that customer, but also the business will lose the families, friends, and associates of this customer. Managers should also train their employees on how to handle a problem because the manager is not always available. An employee should be able to please the...