This study will inform the audience, which competitive advantages Riordan has in common with Apple and Coca Cola. It will distinguish which competitive strategies Riordan may use to increase improvement and sustainability of organization procedures in the global market and the United States. The study will inform why certain types of competitive strategies were used and estimation on how it could affect sustainability of continuing business procedures. Last, it will clarify the effect the global market would have on Riordan’s business strategy. Apple, Coca Cola, and Riordan Manufacturing Company are industry leaders in their own field.
One major competitive advantage each company has in common is differentiating their product. Each company has a variety of items that meets the need of the consumers. The three companies sell both nationally and internationally. Apple, Coca Cola, and Riordan Manufacturing increase sales with new product sales promotion, and price discounts, to ensure prices are competitive to consumers in need. These companies use cost leadership, focus, and differentiation tactics to gain a competitive advantage over the competition. Another commonality between the three companies is accountability to recognize employees for operational excellence.
Riordan Innovation Strategies Riordan increases innovation and sustainability for the business operations in the United States of America and globally by implementing a strategic capacity plan. This plan increases effectiveness, adds improvement to the supply chain, and implement the methods and concepts of lean production to gain value and over time help sustain competitive advantage. Strategic capacity planning starts with better use of resources by reducing waste of raw materials and producing products in good time at a lower cost.
Riordan should make sure stock is available and on the shelf that will allow the inventory cost to rise. Riordan can increase competitiveness by using farsighted capacity planning, by making use of the breakeven analysis of financial statements. This helps Riordan to improve the process it already uses; therefore by using the just-in-time inventory it would help the company in the area of operation processes. Strategies are in place to ensure a better eye for detail, adding the key values of extreme precisions, and enthusiastic quality control to help continue the success.
Business Decisions. Differentiation and cost leadership are two strategies chosen because they are the most common between the different companies. Amazingly these leading organizations from different industries are using the same competitive strategies and tactics. The two competitive strategies may be the reason both organizations are leading within their industries. “Differentiation is a type of competitive strategy with which the organization seeks to distinguish its products or services from competitors” (Valdehueza, 2009). Riordan’s organization sells heart valves, plastic bottles, fans, and medical stents. Clearly, Riordan has a large variety of products.
Organizations use a competitive strategy with cost leadership, which seeks tight cost controls. Cost controls pursue efficient ways to cut cost and be more efficient than the competition. Decreasing business costs every way possible while providing customers with a high quality product is a definite way to guarantee an advantage over the competition. Sustainability When organizations master’s cost leadership, differentiation companies will meet and exceed long-term goals. Organizations can use two strategies for every business situation. Proper use of the strategies results in sustainability and organizational performance.
In the competition process in efforts for the winners to win, they have to increase consumer value to satisfy the customer. This method alone creates long-term sustainability within the corporation. Organizations create customer loyalty by increasing consumer value in efforts to surpass the competition. Continual improvements of this particular process will sustain long-term organizational performance, and operational excellence. Global Market Affect The globalization of markets is the merging of historically distinct and separate national markets into one larger global marketplace (Hill, 2009).
With any form of globalization, companies have to understand international measurement issues. Riordan’s Plastic began with international measurement in an effort to prepare the company for the global market. According to Hill, the globalization of production is the sourcing of services from one location around the world to take advantage of national differences in the cost of factors or production in labor energy, land, and capital (2009). International measurement issues include return on investment (ROI), budget analysis, and historical comparison (Wheelen & Hunger, 2010). Dr. Riordan insisted on using the resources as a tool to increase profits when the company was started . When Riordan became international, customer satisfaction, and the rate of return were the most important factors. Riordan also needed a budget analysis as well as a historic comparison to maintain global success. Conclusion One major competitive advantage that each company has in common is differentiating the products. Each company has a variety of items that meets the need of the consumers. These companies use cost leadership, focus, and differentiation tactics to gain a competitive advantage over the competition.
Riordan can increase competitiveness by using farsighted capacity planning, by making use of the breakeven analysis of financial statement, which helps Riordan improve the process that it already uses. Also by using the just-in-time inventory this would assist the company in the area of operation processes. Differentiation and cost leadership are two strategies chosen because they are the most common between the different companies. When a company master’s cost leadership, and differentiation the company meets and exceed long-term goals.
Continual improvements of this particular process will sustain long-term organizational performance, and operational excellence. A budget analysis as well as a historic comparison for Riordan is in need to maintain global success.
Hill, C. W. (2009). Strategic Capacity Planning in Supply Chain Design for a New Market Opportunity (7th ed. ). Boston, MA: McGraw-Hill. Valdehueza, G. D. (2009). Strategy Formulation, and Implementation. Retrieved from http://www. slideshare. net Wheelen, T. L. , & Hunger, J. D. (2010). Concepts in strategic management and business policy (12th ed. ). Upper Saddle Rive, NJ: Pearson/Prentice Hall.