Competitive advantage of firms

Competitive Advantages of Internationally Operating Companies

Antonia FICOVA

Doctoral Student at Faculty of Economics and BusinessPaneuropean University, Bratislava

[email protected]

Business Strategies

• Target Audience With Clearly Defined Need,

• Delivering a High-Quality Service,• An Appropriate Price,• Being the Best.

Antonia Ficova, Competitive Advantages of Internationally Operating Companies, PEVS, 2014

• Berdine et al. (2008) US textile companies drive the majority of the innovation in the supply chain to both suppliers and customers,

• three competitive strategies that differentiate the products of US firms from other regions of the world are:

• 1. research and development, • 2. marketing, • 3. customer service.• 4. strategic partnership.


The Case of US textil and apparel industry

• Hutchens S. - Benefits as a result of registration to ISO 9000:

• Higher perceived quality (83.3%); • Competitive advantage (70%); • Reduced customer quality audits (56%); • Improved customer demand (29%). • Better documentation (88%); • Greater employee quality awareness (83%); • Enhanced internal communication (53%); • Increased operational efficiency and productivity (40%)


ISO 9000 and ISO 14000

• ISO 9000 deals with quality management,

• ISO 14000 is designed to provide a structure for the management of environmental compliance following six categories: Environmental Management Systems (EMSs), Auditing, Labeling, Performance Evaluations, Life Cycle Assessment, and Environmental Aspects of Product Standards.

• By implementing ISO 14000, any company can become truly competitive by factors such as: Decreasing costs through increased efficiencies, Creating and maintaining new market opportunities, Demonstrating environmental leadership, Improving both its own corporate image and community goodwill.


ISO 9000 and ISO 14000

• Hämäläinen, T. - The most important competitive factors of a national economy are:

• information and competence, new technologies, innovative organisations, highly evolved demand and competition factors, international business operations, a functional regulatory environment, and a reliable public administration with the ability to change and adapt.

• cannot be based on low costs but on the production of goods and services with superior added value.


The Case of Finland

• must transition from a lowcost to a high-value economy

• Smiling curve – stagnation as their low cost advantages


The Case of China

• N. J. Gupta, Ch. C. Benson (2011, p. 4) improves operational effectiveness:

• Green design,• Green operations,• Green manufacturing,• Waste minimization,• Reverse logistics.


Sustainable supply chain management

• 335 senior executives, November 2012,

• 5 industries: Aerospace and Defense, Automotive, Conglomerates, Engineering and Industrial Products, and Metals ,

• companies see value in both breakthrough and incremental innovation to stay competitive.

• The focus on both breakthrough and incremental innovation suggests companies are revisiting R&D strategies according to what´s most effective for their operations.


KMPG and his survey

Competitive Advantages of Internationally Operating

Companies

Antonia FICOVA


Thank you for your attention!