9.1 Competitive Advantages

	Competitive advantages are those resources that allow a business entity to develop and maintain an edge
	over competitors who produce similar goods and services.

	The competitive advantage differs from the comparative advantage, in that the focus is often more on the
	strategies and skills involved, and less on the resources and final cost of production.

	A competitive advantage may be achieved by a brilliant public relations strategy, a unique mode of production,
	or the addition of some benefit that goes above and beyond the benefits offered by similar products on the
	market.
	The purpose of seeking a competitive advantage is to establish the company and its products as unique
	within the wide range of comparable goods and services.
	By doing so, companies are able to create a loyal client base that will remain with them even if operating
	costs make it necessary to increase the unit price of the product in question.
	In order to accomplish this goal, the manufacturer must include and exploit some aspect of the product that
	will keep and hold the attention of the consumer.
	Quality as a competitive advantage is seen as one of the fundamental ways in which both individual
	businesses and national economies can successfully compete in the global marketplace.

9.1 Competitive Advantages

	Comparative advantage focuses on businesses or nations producing those goods and services at which
	they are most efficient, and trading these for products that can be made more efficiently in other nations.
	While considered mutually beneficial, comparative trade did not directly take into account quality as a
	competitive advantage and instead focused on the cost of producing goods instead of their final viability and
	durability once completed.
	All competitive industry tries to distinguish itself through the manipulation of several key factors.
	These include the price charged for goods and services, convenient locations from which they can be
	provided, and by establishing a loyal customer base.
	Where quality as a competitive advantage comes into play is in a background or supporting role, as it has a
	direct impact on every other aspect of a business strategy.
	A premium price can be charged for goods that are based on perceived superior quality, and this creates a
	tendency for customers to be naturally loyal to a brand, facilitating more rapid expansion than competitors
	can attain in the same industry.
	Quality also adds an element of strategic advantage to businesses as it negates most negative feedback
	and returns from customers, and reduces both scrap and rework expenses in the manufacturing process.

9.1 Competitive Advantages

	A common success theme of operations strategy lies on manufacturers' choice of emphasis among key
	capabilities or competitive advantages.
	The preferred competitive advantage guides operations development and specifies how the operations
	function provides a firm with competitive advantage in the marketplace or tactical goal of the operational
	functions.
	Once competitive advantages are chosen, they become the basis for making operational decisions in the
	marketplace.
	Manufacturing strategy literature suggests four competitive advantages: low cost, quality, delivery, and
	flexibility.
	The character of each competitive priority is discussed as follows: Cost refers the production and
	distribution of a product or service at lowest expense.
	Lowering prices can increase demand for products or services, but it can also reduce profit margins if the
	product or service cannot be produced at a lower cost.
	Lowering cost can capture the competitive priority by placing an emphasis on reducing production costs and
	inventory while increasing equipment utilization and capacity utilization points out that quality is
	multidimensional and that each of its dimensions can be used strategically to gain competitive advantage.

9.1 Competitive Advantages

	The quality scale that is being used includes items related to the important quality aspect of process
	control and process management, specifically, high performance design on the future of superior features,
	close tolerance and great durability.
	Quality consistency refers to the frequency of meeting the design specifications.
	The flexibility scale intends to capture the importance of reducing costs associated with changing products
	or mix.