Explain why you chose these competitive strategies and estimate how they might affect sustainability of long-term organizational performance
Estimate which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market.
Explain why you chose these competitive strategies and estimate how they might affect sustainability of long-term organizational performance.
In order to make a concrete decision that will lead to the success of any organization, it is important for every company and its management team to conduct some environmental scanning to observe how other companies have dealt with similar issues. The competitive advantage strategy that Riordan could use to improve innovation and sustainability is differentiation strategy or differentiation focus. Differentiation requires positioning a ...view middle of the document...
Riordan's marketing budget includes funds for studies and focus groups. This information should assist management team in determining which areas of the market to focus, which can lead to increasing innovation. Analyzing other areas of the domestic and global markets will highlight customer needs that have not been met that the organization could then please. This strategy can then lead to an increase in sustainability for the organization's operations in all countries because revenue will likely rise, which can fuel production. Expanding the organization's focus will have a positive effect on long-term organizational performance, increasing sustainability.
The reason for choosing differentiation strategy versus a differentiation focus strategy is that the organization wants to expand customer base needs, which Riordan may achieve by removing themselves from defined boundaries and enlarging its scope. Riordan's management team can improve strategy formulation by looking at their mission, vision, and goals, and re-evaluate the game plan that will align it with their new strategy. Riordan can also enhance their differentiation strategy by modifying its research and development department strategy. Riordan prides itself on quality product leadership, concentrating on growth through differentiation will meet customer's unique needs giving Riordan that competitive advantage. By enhancing its research and development strategy this can result in long-term organizational performance, "employing a differentiation strategy gives customers a clear reason to choose them" (Fletcher,�2011).
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BusinessDictionary.�(2011).�focus strategy.�Retrieved from http://www.businessdictionary.com/definition/focus-strategy.html
Fletcher, T.L.�(2011).�How a business differentiation strategy can help give a competitive advantage.�Helium.�Retrieved from http://www.helium.com/items/1808015-business-differentiation-strategy