Monday, September 23, 2019

What are the main sources of international competitive advantage Think Essay

What are the main sources of international competitive advantage Think about a successful product in your country, what are the - Essay Example Focus Strategy: When a business implements any of the cost leadership or differentiation strategy but in a specific customer target group like in a specific geographical area, the niche segment or a specialized line of products. Competitive advantage is achieved by making optimal use of the resources and the capabilities of then business to create a structure with lower cost or a differentiated product. Achieving a sustainable competitive advantage makes a firm capable of creating more value for its customers and deriving super profits from the business. The main sources of competitive advantage are the asset resources, capabilities and the key success factors. In this report we consider the Porsche cars to study the process of competitive advantage achieved by this line of products. Discussion Porsche is a highly profitable company which manufactures luxurious premium cars. The brand offer elegance and comfort in their products and is segmented as a premium product. Porsche cars hav e gained enormous competitive advantage by implementing a focus differentiation strategy. ... To ensure serving these customers effectively and ensure brand loyalty, Porsche has developed unique aligned capabilities. The mission statement of Porsche is perfectly aligned with their strategic planning thus creating an authentic and unique product. The brand has achieved ultimate competitive advantage by strategically combining quality and uniqueness in its products. The lean production system adopted in the manufacturing of the cars is a key factor in gaining competitive advantage for the product. The resources maintained by the company is carefully chosen and highly maintained. The human resources and the physical resources of the brand add to the value chain. Porsche recruits highly qualified people as their staff and extensively train them to make them competent enough. The employees are imparted with necessary skills through training centres all over the world and in Germany especially. The company supports and motivates their staff by maintaining a financial incentive stru cture where a percentage of the yearly turnover is given as incentives to the employees of Porsche according to the company results. The physical resources of the company are of high quality and the manufacturing process involves using materials of high quality and the use of advanced technology (Porter, 2008, p. 68). The Research and Development team of Porsche in Germany tries to innovate and create superior quality and unique products so as to achieve sustainable competitive advantage. The configuration of the manufacturing plants is concentrated and every department of production is maintained in the closest possible place. Only few parts are imported from other countries or taken from other

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