GMS 401 Chapter Notes - Chapter 2: Knowledge Society, Total Factor Productivity, Economic Statistics
Chapter 2: productivity and operation strategy in global environment. Competitive advantage: the creation of a unique advantage over competitors; creating customer value in efficient and sustainable matter. Differentiation: distinguishing the offerings of an organization in a way that the customer perceives as adding value. Main purpose is to provide uniqueness which is only limited to imagination as each product involves a service and vice versa. Example: glove inc. began its business by offering hypoallergenic gloves first by the time other brands caught up they had already built a brand around themselves, they then offered texture gloves (always one step ahead of the competitors) Experience differentiation: engaging customers with a product through imaginative use of the five sense so the (cid:272)usto(cid:373)er (cid:858)e(cid:454)perie(cid:374)(cid:272)es(cid:859) the produ(cid:272)t (in the service sector) Example: dis(cid:374)e(cid:455) & (cid:373)agi(cid:272) ki(cid:374)gdo(cid:373), people are (cid:374)o lo(cid:374)ger just ridi(cid:374)g a ride (cid:271)ut it(cid:859)s a(cid:374) e(cid:454)perie(cid:374)(cid:272)e.