BU385 Lecture 2: Chapter 2 Competetiveness, Strategic Planning
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Q: on what criteria will we outperform rivals? (strategy) Competitiveness is the ability and performance of an organization. Price-> how much as customers willing to pay for a good/service (if all factors are equal a customer will choose the option with the lowest price) Quality-> desire high quality for the intended purpose. Variety-> more variety the higher variety of potential customers. Timeliness-> availability of goods in a timely manner-> ex. delivering goods/services on time: most tend to choose the best buy or best value . In complex purchases customers may use two categories of purchasing criteria: 2. order winners are the criteria that differentiates on firm"s leases etc. Purchasing criteria such as price, on-time delivery, delivery speed and quality can be order qualifiers or order winners. For example, for business travelers, comfort/convenience (customer service) and being on time are most important (order qualifiers) whereas for economy air travelers price is most important (order qualifier)
