COMMERCE 2MA3 Lecture Notes - Lecture 3: Tim Hortons, Operational Excellence, Customer Service
22 Sep 2017
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Document Summary
By offering excellent customer service, a firm can build a sustainable competitive advantage; however consistently offering excellent customer competitive advantage; however consistently offering excellent customer service can be challenging and may not be enough over the long run. Loyal customers enable a firm to introduce new products and change price points without the risk of losing them. In recent year, firms such as netflix have achieved competitive advantage by utilizing operational excellence. Operational excellence is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers. Firms strive to get their customers the merchandise they want, when they want it, in the required quantities and at a lower delivered cost than that of their competitors. Doing so ensures good value to their customers, profitability for themselves and satisfying their customer needs. Efficient operations also allow firms to provide their customers with lower- priced merchandise. High perceived value + effective branding and positioning.
