Assignment one Organisations and environment Essay

Discuss how an make-ups hawkish emolument net be deepend with the basis of hot engineering science. In this day and age with almost all food markets universe highly matched it is at top of concernes agendas to h ageing in they live a steady rivalrous favor. 1 .The term matched reinforcement is the magnate gained through attributes and resources to perform at a high level than separates in the same industry or market. If a business tidy sum ensure that they shed a competitive advantage it enables them to be one yard ahead of their competition, this is curtail for a businesss success exceptional given the economic climate as it stands. One of the main standards of competitive advantage is pricing/cost. We see these most frequently in supermarkets, as most firms compete for the lowest prices this is because their consumers all want to find the outgo price for the ware they want to buy. We also see this in other markets as consumers al appearances accoun t for a better offer indeed the firm with the lowest prices generally has the higher demand. A nonher physical exertion is quality.When consumers look for witch growth or serves to purchase quality is key share witch influence their diction. We see this on the high street metre and time again as consumers consistently go to big sword names such as apple because they know that quality impart be ensured in their purchase. As a result of this apple or able to boost prices and in whirl create a higher profit margin for products. From these simple examples we give the sack see how important competitive advantage is because of the additional finical gain it heap bring to a business. These examples are basic as a competitive advantage can come in many forms as keen-sighted as it befits a business and their competitors do not have it. A competitive advantage can prove extremely important to a business, for this reason it is only as important to maintain the advantage and enhance it if possible. One way to do this is by the origin of pertly applied science. If a firm is unforced to invest in in the altogether applied science it can be seen as a competitive advantage in itself. This is because the applied science is check off newborn and competitors do not have it yet. This gives the firm a unique advantage and give in turn attract customers.The introduction of new engineering can also be used to enhance a firms competitive advantage. If we take the manufacturing industry as an example the firms competitive advantage may be there product and the way that it functions and the price that it is made for. If the firm thenintroduces many new technology to its production line (machinery) their competitive advantage may be enhanced as the quality of the product is now better referable to the new technology. This will make customer chose that firm over its competitors. The introduction of the new machinery may mean that less lag is now involve in that area of the production line. This in turn will enhance the firms competitive advantage as unit be for the product will become lower due to the reduction of staff. This federal agency that firm can charge less than their competitors cause a higher demand for their product. Another example of how firm can use new technology to enhance their competitive advantage is in the researching of consumer information. A firm can only be prospering in the long electioneering and have a competitive advantage if it knows their consumers inevitably and wants. From this information the firm can devolve a product portfolio and brand that matches the consumers emergencys and wants, in turn giving them a colossal competitive advantage.An example of this could be Tesco. Tesco are using new technology in drift to help them understand their consumers more and in turn enhance their competitive advantage. They have done this by introducing their club posting scheme. This is a reward scheme for cu stomers as an incentive to make them more loyal to their supermarket however this also offers Tescos the opportunity to see scarcely what their customers are buying how often and at what times. This is very useful as it enables them to develop sales strategies and obtain the correct products to complement their consumers inescapably and wants. This will then improve customer loyalty and in the long run make more money. This is another example of how a firm can you new technology (in this case a database and swipe card) in found to enhance the firm overall success and competitor advantage. 2. To gain competitive advantage a business scheme of a firm manipulates the confused resources over which it has direct control and these resources have the ability to generate competitive advantage.This quote reinforces the idea that firms are able. This quote again highlights the fact that in order for a firm to enhance their competitive advantage they need to look at the resources in their direct control and look at how to manipulate or enhance them in order to give them a better competitive advantage. One of the most popular and most successful shipway of doing this is by the introduction of new technology to a business. A common example of this found in the retail industry is source control. A resource under thedirect control of all retailers in on the high street is their own inventory/stock. Over the snuff it ten year there has been a massive change in the way businesses handle the problem of stock control. Instead of the now old fashioned way of stock ordits and counts, most retailer now have a database system which shows all their stock including how much they have on the shop floor as well as in back-up storage. They also know when they have sold any given product and can be told by a computer alert that stock needs to be replenished on the shop floor, or that stock should be order as they have ran out. This system combined with the JIT (just in time strate gy of stock control) has lead retailer to be more efficient scrimping money and time and overall improving their competitive advantage.Other ways that businesses can use new technology to enhance their competitive advantage is via their websites. Many firms underestimate the value of using their websites to gain significant competitive advantage in their given markets. With firm simply using their websites as a means to explain what their business is and show off their product portfolio. However if businesses invest in new web design technology they may be able to enhance your distribution networks. This may complicate using the web portal to enhance logistics, create new merchandising channels (for example affiliate channels) or provide better or faster product access for customers. It is imperative that businesses use new technology in order to change and grow as a business as well as improving its competitive advantage. If this does not pass on the business may be felt behind as the market progress and grows with new technology along with their customers. A great example of this could be Woolworth with left the high street in 2009 leaving 27,000 the great unwashed unemployed.Woolworth downfall lied in its inability to change and grow with consumer demands. 3. professor Alan Wilson, from the citys Strathclyde Business School, said one reason Woolworths did not survive was because it didnt offer the quality of some other stores. And it couldnt offer the prices that the discount stores such as Primark, Lidl and others could actually offer, This ultimately shows the have-to doe with of what can happened to businesses that do not change or put enthuses into new technology in order to enhance their competitor advantage. Although I have mentioned many examples of how new technology can be used to enhance a firms competitive advantage there is some disadvantages when it comes to the introduction ofnew technology. Firstly any firm that is considering the introd uction of new technology will first have think to the highest degree the sign investment. New technology is never cheap and can be quite expensive and time consuming to install. Therefore businesses most think conservatively about if the investment is worth it and will it pay for itself in the long run.Also the introduction of new technology can bring de-motivation into the workforce. For example in the case that I mention early about manufacturing firms where staff could be laid off because of the introduction of new technology, this would a gush example of staff being de-motivated as they are worried about their job and think they could be the next one to go. However level though there are some small drawbacks new technology is still a very important factor when it comes to the enhancement of a firms competitive advantage and should be looked into carefully by all firms that want to be successful and grow.References1. Christensen and Fahey 1984, Kay 1994, Porter 1980 cited b y Chacarbaghi and kill 1999, p. 45 2. Reed and Fillippi 1990 cited by Rijamampianina 2003, p. 362 3. Professor Alan Wilson thoughts on Woolworths- http//news.bbc.co.uk/1/hi/business/7811187.stm