Competitive Advantage through

Operations

Group I
Amrita,Anchal,Akansha,Akhil,Charu
MBA Biotechnology Sem III-B
 What is competitive advantage?
“Advantage that a firm has over its competitors”

Distinctive competence
What you can do that others cannot
What you have that others don’t

Michael porter-competitive advantage

Three methods for creating sustainable competitive
advantage-
1. Cost leadership
2. Differentiation
3. Focus (economics)
Sources of competitive advantage
 Model for Developing Competitive Advantage

Customer
Business Competitive
Environment Requiremen
Process Capabilities
ts
External :- 1. Strategy 1. Flexibility 1. Meeting
1.Threats : Developmen 2. Productivity Specific
Competitors’ t 3. Building customer
action & govt. 2. Product Quality into needs
regulations Developmen the product 2. Quick
2.Opportunities t 4. Time response
: Global Market 3. Developing 5. E-business 3. Product
& Technology system to performanc
Internal :- produce e and
1.Strength in services & features
Material goods 4. Product
resources, 4. Order quality
people & fulfillment (fitness for
products use)
2.Weakness in 5. Price
Material 6. Service
resources,
people &
products
C Meeting specific
U customer needs
S
T
O Quick Response
M
E
R
Product performance
R & features
E
Q
U Product Quality
I
R
E
M Cost
E
N
T
S Service
 Flexibility

Quality Time

Productivity E-business
 Competitive Capabilities

Flexibility
Ability to change between products or customers with minimal
costs & delays
Productivity
Ratio of the output achieved divided by the inputs consumed
to achieve those outputs Quality
Quality High Low

High Limited Market

Complete
appeal because
Failure
of cost
Cost

Limited Market
Low Ideal Product appeal because
of Quality
 Competitive Capabilities

Time
End to End time from generation of new product
concepts to the delivery of finished products
Ex – Third party Inventory rooms

E-Business

Use of electronic platform to conduct company business

Application of computer & IT to design, plan & manage
operation & to track transaction between organization &
its suppliers and between organization & its customers
Case Study : Competitive Advantage Through
Operations
Portakabin limited , U.K
Specialises in producing modular buildings, operating 45
hire centres across the UK, employing over 1,300 people
Operates in an extremely competitive market
Market lead with 15.4% of the overall UK market

It has 3% of the European market , competeting with big

players like GE capital, and Algeco
Case Study contd…

It has achieved competitive advantage through innovative

product development
Portakabin's commitment to its customers includes :-
– Answering calls within four rings
– A response to enquiries within 24 hours
– The building to be delivered on time
– The building to be provided to the agreed contract sum
– Giving a rectification response within 48 hours
– Including customers in a customer care programme
THANK YOU