The reputation management company understands how important it is to have a competitive strategy nailed yet they are a small boutique agency that specializes in a very niche market therefore they don’t have that many competitors around them. Since this is more of a unique and luxury service, having the cost leadership strategy as one of their competitive strategies is not what they are doing since there is no point since they are not a low cost producer. A differentiation strategy is closer to the kind of competitive strategy they have since this involves offering a unique product or service for which customers will pay a premium, which is exactly what they are offering right now. A focus strategy is being able to use a cost or differentiation advantage to exploit a particular market segment rather than a larger market and stuck in the middle is when organizations are unable to develop a cost or differentiation advantage. The reputation management company definitely has a differentiation and focus strategy both nailed down.
There is also the functional strategy which involves a set at the functional level in order to support the business strategy and these departments include manufacturing, human resources, finance, marketing and research and development. Problems may arise when employees or customer don’t understand a company’s strategy that’s why you need to be specific and know what strategy you have. There are different characteristics of quality management including:
- Intense focus on customer
- Concern for continual improvement
- Attention to work process
- Improvement in quality of everything the organization does
- Accurate measurable or organizations operations
- Empowered employees
It is important for companies to also use benchmarking since this is the search for the best practices among competitors and noncompetitors that lead to their superior performance. Also, by analyzing and copying these practices, firms will be able to improve their performance as a whole.