From the first PRACTICE Activity, determine which of the two primary drivers of the competitive landscape is more influential. Explain your rationale. Identify an organization that could benefit from the application of the I/O Model of Above-Average Returns (Figure 1.2 page 15 in the text). Follow the five steps to justify your answer. Do not use Apple or Walmart in this exercise, nor should the organization you select be the same as another post. Be sure to incorporate relevant vocabulary/terms from the chapter and give us the “why”.
Be sure to respond to at least one (1) other student. Be sure to look at all possible ways to earn 100% for your discussion. Remember, I will monitor the discussion board and use my “gaming powers” to AWARD BADGES and/or REVOKE points as applicable. Remember that even though this activity is automatically graded, it may take up to 3 hours for your grade to update in your grade book. If you see that you have not earned full credit you need to go back and post more relevant posts so that your point earning potential can increase.
Examples of what has been provided by my peers:
Week 1-Discussion-Technology and Winn-Dixie
I would go with technology to include innovation as the most influential driver of within the competitive landscape. There are companies like Amazon, eBay, Google, and other technological companies that already lead from the front and have a big part in redefining technology to include digital. Technology with the backing of companies that not only have a lot of revenue but have a strangle hold on key pieces of the market will change forever continue to change business models in the future that have a heavy concentration on revenue, customer service, loyalty, business partners, and analytics. This forces the smaller market to try to keep up and continuously try to reinvent the wheel. There is a lot of pressure on current business models and to look for ways to find a competitive advantage versus other competitors. Obtaining consumer information is key for a business to survive. This means gathering consumer buying habits, inputting that data into usable knowledge, and then making sure that information is integrated into the whole organization. I also think about the information age and how rapidly this changes almost on a daily basis. Almost everyone has a phone, a computer, tablet, or some other electronic device they log onto the Internet that a business can track consumer-buying habits. The key piece goes back to having access to this information and using it to help stay out in front of your competitors.
I would look at using the I/O model of Above Average Returns on a company like Win-Dixie, who just closed 94 stores. The competitors like Dollar General, Amazon, Wegmans and Publix continue to eat up the market creating other grocery chains to close or file for bankruptcy. Winn-Dixie lacked innovation and its business model and strategy could not keep up with the trends. Winn-Dixie should have looked a its location based on the grocery market and regional chains to help stay afloat. The next piece was to invest heavily into newer technologies and product lines. If you look at other successful grocery stores, they offer price cuts, organic options and premium products. Winn-Dixie would need to offer a balance of value, quality, and service to match it competitors. Winn-Dixie would need to increase knowledge intensity to find out more about what consumers want, options on where they want them, and when. This also means understanding additional trends to include consumer spending habits and Internet purchasing options. Other strategies should include looking at contracting out to local farmers and producers to help avoid being locked into costly long-term contracts. Winn-Dixie should also focus on enhancing customer experience to include bars, mini restaurants, and sushi bars like H.E.B in San Antonio, TX. Winn-Dixie’s overall mission should focus on providing an exceptional shopping experience and be competitive to help with repeat and new business.
Drivers of the competitive landscape
Determine which of the two primary drivers of the competitive landscape is more influential.
The first key driver of competitive landscape is technological development. Most, if not all, business and corporation utilize some form of technology device as a major contributor to their daily operation. In the aviation field, the customer experience is driven by automation throughout the process of identifying a potential travel event to the final destination of their planning. In this case, the competitive edge for major carriers is the constant enhancement of automation as a means of creating the best customer experience while establishing a loyal consumer base which ultimately and directly affects their companies financial bottom-line.
Both knowledge and availability of information technologies are vital to the success of a business. The more you know the more you grow is an old cliché’ used to highlight the importance of individual growth through one’s ability to obtain useful information. In the business sector, breakthroughs and cutting edge advancements in technology can be the difference of billions of dollars for those who pioneer the knowledge and are continuously at the forefront of the information.
Identify an organization that could benefit from the application of the I/O Model of Above-Average Returns.
Major air carriers benefit from the applying the industrial organization model of above average returns within the commercial aviation market by their ever-changing innovative strategies to stay relevant in the business. Such strategies include:
- Pricing structures
- Advanced marketing campaigns
- Strategic routing and demographics
Although leadership and their decisions are vital to the internal development of the company, its overall performance and sustainability is based on the external customer’s loyalty and financial commitment which is ultimately driven by the firm’s ability to separate themselves from their competitors. Above average returns come with risk. In this case, the risk of investment for automation within the airline industry in contrast to the old fashion way of a heavily based employee governed customer experience puts competing carriers in tough situation and forces change within the market to establish a loyal consumer base while keeping momentum in a predominantly technological society.