Competitive Advantage and Sustainability in Business Report

This report examines the concept of sustainable advantage within a competitive business environment, focusing on the furniture industry. It explores proprietary elements such as patents and trade secrets, emphasizing their role in maintaining a unique selling proposition (USP) like quality products and customer satisfaction. The report employs VRIO analysis to assess the value, rarity, imitability, and organizational competencies of a company, highlighting the importance of superior organizational processes. Furthermore, it analyzes the economic viability of the business model, considering factors related to the working capital cycle, including revenue generation, customer acquisition costs, and cash flow management. The report concludes by reinforcing the significance of sustainable development and competitive strategies in a globalized economy, referencing research conducted in countries like China, Finland, and Malaysia to support its findings.

SUSTAINABLE
ADVANTAGE

TABLE OF CONTENT
Table of Contents
INTRODUCTION...........................................................................................................................1
1.Proprietary elements — patents, trade secrets and many more aa the competitive firm cannot
likely imitate the product............................................................................................................1
2. Business develop and employ superior organizational processes, capabilities or resources
that others would have difficulty in duplicating or imitating?....................................................1
3. business model economically viable i.e that company won’t run out of cash quickly?.........2
That depends upon the answers to these questions related to working capital cycle-................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
In the world economy has received a higher level of globalization with the help of
technological advancement, scarcity of resources and abundance of managing sustainable
development. With the reach of increasing knowledge and expertise. There are more companies
that have entered competitive world. for the efficient management of resource, they are engaging
into sustainable development(World Health Organization, 2016). There was research in the top
three countries that is china, Finland and Malaysia where it is found out that the furniture
industry is best platform for global manufacturing strategy research. The analysis of USP will be
done and major compensate will be identified with contribute in competitive advantage of
industry.
1.Proprietary elements — patents, trade secrets and many more aa the competitive firm cannot
likely imitate the product.
So the USP for ' Tech Furniture' is Quality product along with customer satisfaction.
Yes , there is the requiremt of patent and trade secret for the maintaining the identification of the
firm in competitive market as to develop the competitive advantage in the development of
profit(Grey and Tarascon, 2017). With the help of patent the impact will be that the competitor
cannot copy the design patten and texture. If they try to do that then the company is liable to file
a legal case against them.
2. Business develop and employ superior organizational processes, capabilities or resources that
others would have difficulty in duplicating or imitating?
VRIO analysis of ' Tech furniture'
Value-the value of financial resources, marketing expertise, and the there resource are making it
more valuable. The company is staring at credit furniture which making something different
from competitor.
Rare-as the furniture is credit furniture are the valuable furniture as it is costly to attain the value
of that. Due to this the competitor can easily enter to the market(Sachs, 2015).
Imitate- imitation can be done in two ways in which ether duplicating the product or by creating
the substitute of product. But due the presence of patents and trade secrets it is a impossible ton
duplicate but the competitors can reproduce the substitute.
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Organizational competencies-the organizational competence are well managed by the human
resource department as the organizational structure of organization is different which
compositors cannot copy.
The company has the major difference of having the competitive advantage over the
rivalry firm for the development of process. The company is having the competitive advantage
that the firm is using high customer satisfaction with maintain the quality of product. The
company is not making any compromise the development of product(Weaver and et.al., 2017).
The company is having the high level of organizational structure with a systematic and
established process which can not be copied by any competitor. The advantage that the
competitors are having over the is that the firm is having costly product which make enter the
competitors the market.
3. business model economically viable i.e that company won’t run out of cash quickly?
That depends upon the answers to these questions related to working capital cycle-
Will your revenue be adequate in relation to the capital investment you need and the
margins you get?
Yes the because of the quality maintained by the company will make the loyal customer retain
for the longer period. The customer service provided by the company help to retain the
maximum level of employables that will make the profit margin increases((Carley and Christie,
2017)).
How much will it cost you to acquire and retain customers?
Th-ea cost amount of profit as the customer needs to be retained for the longer period. The
amount which will be required amount that is required to attract or retain the customer will be
high as because in the business of furniture all is required by the customer is 500 pound.
How long will it take to attract customers?
It will take the time period of almost three months in the development of business and applying
the market strategies in the development process the companies. the application of market
stratergies will take some time to make customer attracted.
Will your gross margins be adequate to cover your necessary cost structure?
Not at the initial stage, the gross cannot recover the cost structure but after the development of
business at participate at particular moment of time will make to ankle to cover the cost
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structure.
How much cash must be tied up in working capital (inventory or other) for how long?
Amount more that 500 pound will be needed to as the working capital as to operate the day to
day expenses of the company. The company is required to have the development of the company
data base structure and developmen(Assembly, 2015)t.
How quickly will customers pay?
The customer has the option to pay the credit facility to pay the amount to the company, but still
for the reliable customer there are the opportunities for the development process of the country.
How slowly will suppliers and employees be paid?
The time period of 1 month will be given for the development of the company as to increase the
audibility of the firm for the longer period.
CONCLUSION
There are more companies that have entered competitive world. for the efficient management of
resource, they are engaging into sustainable development(World Health Organization, 2016).
There was research in the top three countries that is china, Finland and Malaysia where it is
found out that the furniture industry is best platform for global manufacturing strategy
research.Th-ea cost amount of profit as the customer needs to be retained for the longer period.
The amount which will be required amount that is required to attract or retain the customer will
be high as because in the business of furniture all is required by the customer.
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REFERENCES
Books and Journals
Carley, M. and Christie, I., 2017. Managing sustainable development. Routledge.
Assembly, G., 2015. sustainable Development goals. SDGs), Transforming our world: the, 2030.
Weaver, P. and et.al., 2017. Sustainable technology development. Routledge.
Sachs, J.D., 2015. The age of sustainable development. Columbia University Press.
Grey, C.P. and Tarascon, J.M., 2017. Sustainability and in situ monitoring in battery
development. Nature materials. 16(1). p.45.
World Health Organization, 2016. World health statistics 2016: monitoring health for the SDGs
sustainable development goals. World Health Organization.
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