Competitive Strategy And Total Quality Management Case Study

Arumugam, V., Chang, H., Ooi, K., and Teh, P. (2009). "Self-assessment of TQM practices: a case analysis", The TQM Journal, 21(1), 46 – 58. Retrieved from http://www.emeraldinsight.com.ezproxy.liberty.edu:2048/journals.htm?articleid=1766744&show=abstract#sthash.TkDGZoZ7.dpuf

Strategy is about seeking new edges in a market while slowing the erosion of present advantages. Effective strategy nnoves are grounded in valid and insightful monitoring of the current competitive position coupled with evidence that reveals the skiHs and resources affording the most leverage on future cost and differentiation advantages. Too often the available measures and methods do not satisfy these requirements. Only a limited set of measures may be used, depending on whether the business starts with the market and uses a customer-focused approach or alternatively adopts a competitor-centered perspective. To overcome possible

The cost leadership strategy seeks to improve profit margins by bringing down the costs of producing while enabling the organization to still charge market prices. They also focus on increasing the market shares through lower pricing, enabling the organization to continue to reach profits because of reduced costs. As with any organization the goal is to minimize cost directly to the organization providing the delivery of products or services. According to Barney (2007) low cost leadership strategy takes pride in initiating its costs advantage abilities to charge lower prices while reaping the rewards of higher profits.

Cost leadership strategy is used by firms to surpass their competitors by reducing their cost from production of goods or services and is part of the business level strategy (Hills et al, 2007). There are four factors that influence a company’s ability to build and sustain a competitive advantage: efficiency, quality, innovation and responsiveness to customers. These factors allow a company to (1) differentiate its product offering to create greater perceived customer value and (2) lower its cost structure, which will then build a competitive

Quality management is an act that monitor all activities that needed to maintain and sustain high quality output, continuous improvement of process and product to a desire level of excellence in order to create customer satisfaction (Flynn, Schroeder, & Sakakibara, 1994, p. 342). Nowadays, increase in globalization and international trade had led to the increase of competition in the global market. The increase of competition had forced companies to focus on the concept of quality in their business and discover that effective quality management can increase their competitive advantage in the global market (Anderson, Rungtusanatham, & Schroeder, 1994).

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1),

The organizations that endeavour to wind up the least cost makers in an industry can be alluded to as those taking after a low cost procedure. The organization with the least expenses would gain the most elevated benefits in the occasion when the contending items are basically undifferentiated, and offering at a standard business market cost. Organizations taking after this methodology place accentuation on cost diminishment in each action in the value chain. Note that an organization may be a cost pioneer however that does not inexorably infer that the organization 's items would have a low cost. In specific occurrences, the organization can for occasion charge a normal cost while applying the low cost leadership strategy and put the earnings made back into the business

Strategy can be defined as being different from one’s competitors, finding the race to operate and accomplished it. According to Michael Porter (1996), while becoming better at what you do is desirable, it will not benefit you in the long run because it is something other competitors can also do. Strategies for organizations are originally developed by Michael E. Porter in 1979 by introducing the five forces model. A company can identify the industry profitability and attractiveness by analyzing the five forces of Porter (Johnson et al., 2008). And then a reasonable strategy can be set up in line with the strengths and the weakness of an organization is able to create a plan for a stronger position for the organization within its

“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).

A successful cost leadership strategy usually provides the entire firm with high efficiency, low overhead, limited perks, intolerance of waste, intensive screening of budget requests, and wide span of control efforts. However, some risks of pursuing this strategy are that competitors might imitate the strategy, thus, driving overall industry profits down; that technology breakthroughs in the industry may make the strategy ineffective; or that buyer’s interest may swing to other differentiating features besides price.

Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.

The five generic competitive strategies have become some of the most used competitive strategies in contemporary corporate management. Michael E. Porter (1980) described competitive strategy as“… being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value”.

I believe that the overall competitive strategy of a company is more than the sum of its functional strategies. There are, however, both good and bad associated with that feature. On the one hand, such a connection makes it difficult for others to imitate a company’s successful actions and, therefore, can give a company a sustainable advantage. On the other hand, those same links can make it difficult for the company to shift its competitive posture in response to the changing or changed realities underlying economic activity.

The Three pure generic competitive strategies are cost leadership, differentiation and focus. Each factor has its own advantages and disadvantages. A company should balance these factors in order to be successful. For growing industries, there are several other sub factors like chaining, franchising, etc. Our article will focus primarily on the generic factors as they are applicable to most of the industries and the challenges that the companies face with these strategies

This study will explore that Strategic Quality management’s contribution towards economic expansion, which provide analytical outlook of their internal capabilities and external prospects.