Essay Example: Discussion on Competitive Advantage
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Using SWOT and Benchmarking Techniques for Competitive Advantage
Discussion 1: SWOT Analysis
Response to Secondary Post 1
The dynamics in the business environment compels organizations to seek ways of creating a competitive advantage. As such, identifying a firm’s resources and its capabilities helps it in attaining competitive advantage. A company’s competitive advantage is supported if the resources and capabilities are valuable and rare. Sustainable competitive advantage, on the other hand, can be achieved if the company’s resources and capabilities are inimitable and non-substitutable (Gamble, Thompson, & Strickland, 2016). Using SWOT analysis helps in identifying areas in which the business has its strengths, weaknesses, opportunities, and threats. This aids in strategy formulation concerning the allocation of resources to attain competitive advantage. In response to the first post, the author puts clearly that by using SWOT analysis, a company gains insights that are useful in ensuring that there is a continuous operation within the company.
Badger’s investment in pipe-inspecting and certifying market presents opportunities for the organization. With increase infrastructural development, the organization stands ahead of its competitors. As much as it faces stiff competition in Canada and US, Badger may counter this through increased investment in technology such as the use of latest camera and detection as well as sophisticated GPS to help in locating sewers and other pipeline infrastructure. This will not only help in the cleaning process, but also aid construction companies precisely locate the pipeline systems. This becomes cost-effective and eliminates traditional ways of operations thus eliminating guesswork. Moreover, the advantage of this innovation is that it is easy to locate blockage in pipes thus reducing time and resources which are critical factors in attaining competitive advantage. Thereby, such innovation aids in identifying, prioritizing, and methodically countering risks (Staack & Moebius, 2015).
Works Cited:
Gamble, J., Thompson, A. A., & Strickland, A. J. (2016). Essentials of Strategic Management: The Quest for Competitive Advantage. New York City: McGraw-Hill Education.
Staack, V., & Moebius, R. (2015). How companies can improve innovation, reduce costs, and mitigate risk. Chicago: PWC.
Response to Secondary Post 2
In this post, SWOT analysis is applied in the context of the manufacturing sector. The definition is clear since it simply breakdown the letters from the acronym giving the full meaning and use of the tool. Essentially, SWOT analysis is an excellent technique for identifying a firm’s strengths and weaknesses, the opportunities it has in the market as well as external factors that pose as threats for the organization. A company’s strengths often originate from internal factors such as core competencies. The weaknesses can also be seen as internal issues a firm faces or are failing compared to its competitors. Some of the common weaknesses a firm may face include insufficient skills and deficiencies in organizational structure.
Furthermore, opportunities are identified from the company’s external factors in the market such as identification of a gap that in a market not being served or being underserved. Threats, on the other hand, refers to factors from the external environment and which an organization has limited control over but have a significant impact on the company success. These factors may include intense competition, entry of a formidable rival, costly regulations and a sudden shift in consumer test and preference (Gamble, Thompson, & Strickland, 2016).
In this post, the author argues that SWOT analysis is often not well utilized. The post further adds that expert’s postulates that SWOT should list 3-5 items in each section of the quadrant and use specific definition while relying on facts as opposed to opinions. In this post, the author points out that the execution part is more important than the activity itself. However, it is important to note that while execution yields the final result, it relies heavily on the planning process in the SWOT activity thus, making both aspects critical and equally important. The post has also used an example of Domino’s Pizza arguing that the organization does SWOT well but focuses on threats and opportunities. It posits that by understanding the external strengths, it helps the company to develop effective strengths to sustain the market. While this is true, it still requires analysis of strengths given that through the company’s strengths, it is possible to offset the weaknesses thus helping in dealing with threats by seizing up market opportunities. For example, Domino’s Pizza primary strengths are robust brand awareness which gives the company a competitive advantage. As such, ignoring this factor may affect the overall success of the organization. This is further aggravated by the companies increasing debts which may hurt its finical flexibility (MarketLine, 2015). This suggests that ignoring the strengths and weaknesses side of the quadrant limits the execution of opportunities to counter the threats in the external environment.
Works Cited:
Gamble, J., Thompson, A. A., & Strickland, A. J. (2016). Essentials of Strategic Management: The Quest for Competitive Advantage. New York City: McGraw-Hill Education.
MarketLine. (2015). Domino’s Pizza, Inc. London: MarketLine.
Discussion 2: Benchmarking
Response to Secondary Post 1
Starting with personal experience, this post makes a compelling argument on the importance of benchmarking in an organization. Thompson et al., (2016) postulate that benchmarking is a critical tool useful in improving an organization’s internal functions based on getting insights and learning the way other companies perform these functions and borrowing their best practices. By using real life and personal experience, this post justifies the relevance and effectiveness of benchmarking. For example, the author points out that with ten years of experience in benching, there was a need to bring it in, while trying to convince the senior leadership on the changes needed to improve the sanitation program under the company’s supply chain. Therefore, by benchmarking with ten organizations, the author was in a position to give facts on ways to rebuild the supply chain which made it easy for the leadership to by the idea and provide support. Essentially, benchmarking allows one to identify what another firm does bets, analyze how it does it and meet the results, strategize on how to improve, make implementation, and carry out constant monitoring and evaluation (Balamurugan & Poongodi, 2016). Tying benchmarking with value chain shows how the technique can be applied to improve the five processes of the value chain which entails inbound logistics, operations, outbound logistics, marketing, and sales as well as service.
Works Cited:
Balamurugan, K., & Poongodi, P. (2016). A Study on Benchmarking: Importance of Benchmarking
Process in Service Marketing. Journal of Business and Management, 1-3
Gamble, J., Thompson, A. A., & Strickland, A. J. (2016). Essentials of Strategic Management: The Quest for Competitive Advantage. New York City: McGraw-Hill Education.
Response to Secondary Post 2
This post highlight a different approach to benchmarking. It argues that Badger does its benchmarking within its operations and in line with past performance concerning growth and profitability. This often called internal benchmarking defined as a process by which a firm identifies exemplary business units within its structure point out cost components that are doing well and suggests revenue sources (Ray, Kumbhakar, & Dua, 2015). Essentially, a company does not always have to seek other firms in the industry for benchmarking purposes. Instead, it can carry out internal benchmarking with the best business unit and thus help in replicating the best practices within the unit to other sectors of the company. This does not only create a synergy within the organization but also helps in solidifying its core competencies for competitive advantage.
Additionally, the idea that Badger is the leading hydrivoc in North America does not mean it is the best in the world. It is important to look at best practices of other companies across the world such as Vac Group in Australia, and Jetting Systems in the UK. Nevertheless, Badger’s value chain gives the company a competitive advantage since most of the inputs used are made within the organization. This means that the company cost-effective strategies that suit its business model (Gamble, Thompson, & Strickland, 2016).
Works Cited:
Gamble, J., Thompson, A. A., & Strickland, A. J. (2016). Essentials of Strategic Management: The Quest for Competitive Advantage. New York City: McGraw-Hill Education.
Ray, S. C., Kumbhakar, S. C., & Dua, P. (2015). Benchmarking for Performance Evaluation: A Production Frontier Approach. New York: Springer.