Operations strategy as a source of sustainable competitive advantageAt this point, a brief summary may be in order. Part I dealt with understanding - an introduction to operations management and to organizational strategy. Part II (analysis and synthesis) has so far demonstrated that:
|1 We can classify types of operations strategy;|
|2 They have a particular essence, a blend or fusion of building blocks that give each a unique composition, customized to the embeddedness of the situation; and|
|3 These various operations strategies have a number of tactical factors or contingency issues that influence the deployment of the strategy and also act as management levers to enhance its competitive ability.|
In this chapter we examine the support that an operations strategy can provide to an organization’s competitive strength. Fig. 8.1 demonstrates the contribution to the wider debate thus far.
In the figure, we can see the contribution of the tactical factors discussed in chapter 7 that contribute to operations strategy positioning - flexibility, quality, cost and response - and act as management levers. This positioning will lead to competitive advantage by (a) providing a lower cost product or service; (b) differentiation offering a better quality or more variety; (c) a faster, responsive service; or (d) a combination of these in either a broad focus or particular niche market.
LEARNING OBJECTIVESAfter considering this chapter, the reader will be able to:
| Appreciate the strategic role of an operations strategy |
| Analyse its competitive dimensions |
| Plot the life cycle of such a strategy |
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Strategic Operations Management:The New Competitive Advantage.
Contributors: Robert H. Lowson - Author.
Place of publication: London.
Publication year: 2002.
Page number: 155.
This material is protected by copyright and, with the exception of fair use, may
not be further copied, distributed or transmitted in any form or by any means.