Competitive Advantages Essay

819 words - 4 pages

Competitive Advantages
This paper will discuss the competitive advantages of Costco and Riordan Manufacturing. An analysis will be performed to expose which competitive advantages Riordan has in common with Costco. An estimate on which competitive strategies Riordan would use to improve innovation and sustainability of business operations domestically and internationally will be given. An explanation will also be presented to describe how the competitive strategies chosen may affect the sustainability of long-term performance and how the global market would affect the business strategy of Riordan.
Like Costco, Riordan manufacturing generates greater sales and margin to optimize their ...view middle of the document...

Riordan chose the pricing and product selection strategy because of the customer base they would attract. Like Costco, Riordan focuses on a certain group of customers. These customers are looking for and expecting a higher quality product. Different from the lower quality products that Riordan’s competitors are manufacturing. These higher end products cost more; however, the customer base prefers better quality over quantity. A higher percentage of the customer base is typically more willing and able to continue purchasing Riordan’s products on a regular basis even when the economy is poor. This type of strategy ensures Riordan a maximum growth opportunity when the economy is strong and a minimal impact on growth when the economy is weak. Focusing on the satisfaction of the customers is important to Riordan. High quality and satisfied customers are intertwined and cannot be accomplished individually. Linked to high quality and customer satisfaction is employee satisfaction. Riordan focuses on supporting their employees to help in the accomplishment of the company’s goals. To do this Riordan realizes to maintain employees the company must keep them happy to minimize the attrition rate. According to Caitlin H., Costco maintains annual employee turnover rate of 17% (Caitlin H., 2012). This is the same type of goal Riordan is trying to accomplish. By maintaining a low attrition rate, Riordan maintains a well-trained and experienced group of employees. This experienced group of employees helps to increase and maintain the efficiency of the Riordan Manufacturing Company. Riordan knows that it will cost more money in the long run...

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