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
o Innovationo Time-to-market for new products
and services
Cost of an organizations output
o Productivity
Location
Quality
Quick Response

Flexibility
Inventory Management
Supply Chain Management
Service
o Service Quality
Managers and Workers

Why Some Organizations Fail

1. Putting too much emphasis on shortterm 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.