Recommendations To Make The Organization More Competitive

The more competitive corporations are in markets, the less the strategies are available to any corporation. All corporations become reactive rather than proactive, unable to impose their will on the market. They cannot control price, they cannot differentiate their product. Competition denies them the resources to acquire other enterprises. In reality cost positions differ, often significantly, and products are perceived to be different, sometimes so different that some are branded. This generates both the scope and resources needed for acquisitions, aggressive price behavior or a major marketing campaign.

The specific recommendations the Board is seeking are how:

A. to make the organization more competitive:

The main outcome of having a competitive strategy advantage is clear. Such an advantage translates into the positive outcomes of a profits earned by our corporation with above average for the industry, instead of a loss less than that earned by others. It does not necessarily mean an above-normal profit since this depends on the nature of our industry. It is easy to recognize when competitive advantage exists, when an our corporation, is competing with another corporation, for the same customers in the same market, is able to earn either a realized, or potential, profit which is higher than that of competitors, or a loss which is smaller. Provided the accounting is accurate, it is not difficult to identify the corporation with a competitive advantage. The result of a better financial performance is made possible by the key characteristic of any competitive advantage, the greater utility or value given to the customer by an enterprise. Customers buy our service either in greater numbers or at a higher price because of this greater advantage. Competitive advantage is then the ability to better satisfy our customers than competitors could.

The causes of the existence of such an advantage reflect the combined ability to recognize opportunity and therefore position the corporation accordingly, and produce what is wanted at a cost and therefore a price which is acceptable. Both these abilities are the result of the appropriate application of the core competencies possessed by the corporation.

B. to provide high quality customer services:

The corporation realization of entrepreneurial goals requires, for its success, adequate, even high-quality management inputs. Many of these management inputs involve specialist knowledge of functional areas. The proportion of entrepreneurs and managers required within an enterprise, or indeed the desirable blend of these characteristics within the same individuals, can vary markedly.