Why do companies lose their competitive advantage – and what measure we have to take to fix it?

Competitive advantage is based on 

• Overall cost leadership
• Product differentiation
• Market Focus

Now  to fix the competitive advantage, we need to fix the above from  several angles like

1. value chain analysis,
2. outsourcing vs, in-house production,
3. technological breakthrough,
4. competitor analysis,
5. new entrants in the market and
6. marketing strategy 

 

 

Your competitive advantage is what makes your product better than what is currently available. A competitive advantage may be utilization of a new manufacturing technique, or a unique distribution concept, or a patented technology.If you are having a competitive advantage you ought not to loose it to competition.

This is what makes you to stand apart from the crowd,do more research within the organization and even outside it and try to find who is responsible for letting it go to competition.It may be one of your employees or could be a nexus who is sharing the vital info. 

Companies lose their competitive advantage for a number of reasons, and there is no single pointed answer, only clue: people are the answer to everything, and management more than anyone else.

Strong vision, strong team and passion is pre requisite

Companies should look for the product/ services the customer would like to have (not what we produce and then go to market for selling - Quoted by Steve Jobs).

CO. should be able to provide value to the money spent

Co. shud go with the time, technology

believing in team and converting liability into assets

Look for strategies for getting continued and flourishing business from Loyal and long term customers

Diversion and integration of business as a continued process

Allow and motivate people to think out of box, free environment and culture.  They can give you miracles.

 

 

 

 

1.Patent & copyright infringement.2. Poor quality/decreased quality production.3. Change in Gov't polict for instance abandoning protected monopoly.4. Outdated technology-lack of breakthrough technology.5. Inadequate creativity, innovations & inventions.6. Poor customer service.7. Insufficient resouces & bankruptcy.8. Rivalry & entrance of new financially stable firms in the industry.9. Broadened strategic fit gap. SOLUTIONS.1. Redifing & revisting policies, strategies, Procedures, Vision, Mission, Goals & Objectives.2. Strategic management.3. Pro-reactive protection of your weak flanks.4. Expand total market base- strategic alliance, merger, franchise.5. Staff adjustments to decreae on the strategic fit gap.6. Improving upon customer service to arrive at customer delight & loyalty.7. Applying to courts of law for patent & copyright infringment redress.8. Sourcing for new up to date advanced technology breakthrough.9. Sourcing for or applying for financial assistance from financial institutions to aquire more capital & compete favorably. Thanx for the invitation

because they didn't care about service after sale

 

Leader ship

Product Range

Customer Focus

Mission, Values, Vision, Strategy and Balance Scorecard!!!

Too low P,r employees;disabled to promote the company to customers.

Dans un environnement très concurrentiel, l'organisation assure sa survie par sa capacité à s'adapter (flexibilité), mais aussi à faire face à la concurrence (compétitivité). On dit alors que, pour être compétitive, l'organisation doit développer des avantages concurrentiels par rapport aux autres.

The Three biggest reason why companies lose their competitve advantage are:

1) Changes in Customer Preference

 

2) Challenges From Competitors

 

3) Internal Changes

The measures that we have to take to fix them are:

1)Focus on  customers. Conduct double blind market research to find out what truly matters to customers about the product or service  provided – make sure to understand what customer value

2) Focus on what to do best – better than any of new (and current) competitors.

3)No matter what internal changes happen to a company, continuing to conduct market research is one of the best ways to weather the changes. If a company decides to pursue a new target market, or if new company leadership wants to completely change the focus of the company, then the leaders need to ensure that those changes are supported by market research. This is an important way to ensure that consumers and target market value the things that are selling. Don’t make a shift unless to know the shift is something the consumers will value.