Chapter 2: Competitiveness

Competitiveness how effectively an organization meets the wants and needs of customers relative to other that offer similar goods or services.

Marketing Factors that Affect Competitiveness Identifying consumer wants and/or needs Pricing Advertising and Promotion

Operations Factors that Affect Competitiveness Product and Service Design Innovation- Time-to-market for new products and services Cost of an organizations output Productivity Location Quality Quick Response Flexibility Inventory Management Supply Chain Management Service Service Quality Managers and Workers

Why Some Organizations Fail1. Putting too much emphasis on short-term financial performance at the expense of research and development.2. Failing to take advantage of strengths and opportunities, and/or failing to recognize competitive threats.3. Neglecting operations strategy.4. Placing too much emphasis on product and service design and not enough on process design and improvement.5. Neglecting investments in capital and human resources.6. Failing to establish good internal communications and cooperation among different functional areas.7. Failing to consider customer wants and needs.