Impact Of Sustainability Efforts On Supply Chain Risk

Running head: Operations Management 1
Operations Management
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Operations Management 2
Discussion Question 1:
Identify the drivers behind competitive advantage and discuss how process design and
supply chain configuration can produce cost advantages.
Competitive advantage is an essential element that is required in every organization to
survive in the market. Competitive strategy is an advantage that is generated and motivated
by other factors behind, therefore making more sales due to a large market share. These
drivers are many according to the market environment, but two of them are main. According
to the Algieri, Aquino, and Succurro, (2018) these are:
Cost advantages – The organization uses the drive-through price strategies. The
organization allows charging less price on their product and services compared to its
competitor in the market, thus gaining competitive edges. The drive is motivated by lower
production cost; production volume is high according to the economy of scale, and lower
price in the raw material.
Differentiation – Differentiation is another main drive which deals with product
features which competitor cannot achieve. The mechanism creates product benefits and
advantages in the market. Superior performance and high-quality products benefit the
company and increase its brand and reputation in the market.
Other drivers include:
Resources – Organization composed of highly-skilled workers will have higher
quality product design compared to the competitor. However, this is a result of utilizing
available resources well, including other resources like information, technology, and current
decision-making tools.