Customer's Satisfaction - Book Report/Review Example

1. Companies can adopt several positioning tactics to attract s and march ahead of the competitors. Many companies position themselves as thelowest price providers. In retail sector, Wal-Mart using this positioning tactic. It is also indicated by its slogan ‘Always Low Prices’. Similarly. In the airlines industry Southwest uses this positioning tactic. These companies thrive on high volumes as a result of their low prices while maintaining acceptable product quality. Another common positioning tactic used by companies is that of higher quality.

These companies offer their products at a premium over their competitors but with a promise of higher quality. Several equipment manufacturers and apparel brands use this positioning tactic.There are companies which base customer satisfaction as the key to their positioning strategy. The tactics followed by these companies include low customer response time, flexibility, innovation, aesthetics and dependability. Technology oriented companies in fields such as computers, digital media devices, mobile phones, electronic gadgets, cameras and music tend to follow these positioning tactics.2. Organizations can gain sustainable competitive advantage by focusing on operations based strategic capabilities.

These capabilities can be classified into three types. The process based capabilities enable a firm to aim for low prices or high quality products. These capabilities are achieved by making the transformation process of raw materials into finished products more efficient. Thus, Wal-Mart has ensured the best in class supply chain management to ensure lowest prices while McDonalds has developed consistent procedures for producing fast food throughout its stores. These steps have ensured low prices at decent quality levels for these firms which are leaders in their industries.

Systems based capabilities enable firms to concentrate on competitive advantages such as high speed of response, customized products, large variety of products and faster time to market. Allegheny Ludlum Steel Corporation has focused on these capabilities to provide customized steel products to customers. Organizations such as Microsoft and Google make use of systems based capabilities to ensure a sustainable competitive advantage.Organization based capabilities are based on faster new product development and are most difficult to acquire and replicate.

Historically, Lincoln Electrical Company exhibited this capability during World War 2. In the current scenario, Apple seems to have perfected this ability.3. The first way a company can defend itself through operations is by keeping a constant track of the visible and hidden threats. These include large and immediate competitors who can attack the company by their scale, experience or speed. But more prominently, this requires a deeper analysis of the companies which may be relatively small today but may possess the ability to attack by combining several unrelated skills available in the market.

These companies could also possible attack by taking the route of acquisitions. Federal Express is one company that successfully defended itself through this way.The second way a company can defend itself is by cultivating an ability to learn within the organization. Acquiring such abilities does take time and is difficult to replicate by other organizations. GE is one company that believes in this method.Thirdly, a company must not limit itself to follow the best practices available. Rather it must take a step ahead and adopt new practices which can keep the competitors at bay for a long time to come.

Works CitedHayes, Robert H. & Upton, David M. “Operations Based Strategy”. California Management Review. Volume 40, Number 4, Summer 1998