Competitive Strategies to Improve Innovation and Sustainability
Decide which competitive advantages your chosen organization has in common with the companies researched last week, and estimate which competitive strategies the organization could use to improve innovation and sustainability of business operations in the United States and/or the global market.
- Explain why you chose these competitive strategies and estimate how they might affect sustainability of long-term organizational performance.
- Explain how the global market would affect the business strategy of your organization.
- Student: April Cangrejo
- Textbook: Fundamentals of Strategic Management
- Course: MGT 498
The following paper will analyze “Huffman Trucking Company”, a nationwide transportation firm that was established via K. Huffman in 1936. The company provides services for major clients such as: the US Government, electronics corporations, and auto parts suppliers. The company is situated in Cleveland OH (Huffman Trucking Company. 2014). Nowadays, Huffman has approximately 1,400 employees and 800 tractors. Furthermore, the vision statement of the company is to turn into a model company to its stockholders, stakeholders, employees, and customers. Moreover, the mission statement of the company is to be a profitable, emergent, and adaptive company in this more competitive business environment.
Huffman Trucking Company” can adopt as well as implement a plethora of effective competitive strategies to build competitive advantages and to improve innovation as well as sustainability of business operations in the global market in an effective and a more comprehensive manner. The competitive strategies for Huffman are described as below:
Huffman Trucking Company can use the differentiation strategy in order to improve organizational productivity as well as sustainability in the global marketplace by using differentiation strategy. For instance, with the help of this strategy, Huffman Trucking Company can offer unique as well as attractive services to the customer. In the same manner, the company would be able to satisfy the needs of customers in an effective manner and a significant manner. Apart from this, it should also be noted down that, unique service offering would also provides competitive advantages to the organization over its competitors. Moreover, this differentiation strategy leads the organization to focus on producing a highly distinguished product line and marketing plan to become the group leader in the industry. In this way, Huffman Trucking can exploit differentiation strategy to improve innovation and sustainability in the global market.
Huffman Trucking can adopt and implement a low cost pricing strategy or cost leadership strategy to order to attract more and more customers in an effective and a more comprehensive manner. For instance, with the help of this strategy, the organization can acquire cheaper services through economies of scale as per the requirements and need of customers. Along with this, the main aim to adopt this strategy is to be the cheapest supplier of a good or service (Porter, 2008). In this way, the competitors become unable to compete with the organization because of this needs economies of scale. In this way, pricing strategy also plays a vital role in the success of the business.
Reason to Choose These Competitive Strategies: There many reasons to choose these competitive strategies for a high-performance business organization. For example, these competitive advantages strategies will help the company in offering distinctive services at a very lower cost that is more essential to improve the sustainability and productivity of the business organization at the global level. Moreover, these strategies would also bring innovation in its services by satisfying all the needs of the customers. At the same time, it is also analyzed that, the organization would also be able to bring effective processes, new ideas, products, and solutions within the organization. In the same manner, the company would be able to meet the needs of the market in an effective and a more comprehensive manner (Day & Reibstein, 2004).
On the other hand, with the help of these strategies, Huffman Trucking can offer high quality as well as unique services at the lower cost to the customers that provide competitive advantages in an effective and a significant manner. Therefore, these strategies would be more beneficial for the success as well as growth of the business organization.
Sustainability Of Long-Term Organizational Performance
Competitive strategies have a positive effect on the sustainability of the organization. For example, these strategies lead to new opportunities in industries that have potential for strong future success and growth. Along with this, these competitive strategies play a significant role in value creation of the business organization via offering differentiation of products and services to accomplish competitive advantages in an effective manner (Kossowski, 2007). In this way, it can be said that, competitive strategies affect sustainability of long-term organizational performance in an effective and a more comprehensive manner.
Global Market Would Affect the Business Strategy of the Organization: In todays more globalized and complex business environment, global market would also affect the business strategy of the organization at the global level. A business organization requires understanding that there are numerous international measurements with any form of globalization. For instance, with the help of international measurement, Huffman Trucking will prepare itself for the global market in a proper and a significant manner. For instance, historical comparisons, production in capital, budget analysis, labor energy and return on investments are the major international measurements.
Along with this, Huffman Trucking insisted on using the resources that were available as a tool to struggle and to increase the organization’s profits. Moreover, it believes that, the rate of return and customer satisfaction is the two important factors to become an international business in an effective manner. In addition to this, a good historical evaluation and a proper budget analysis is also a play a vital role in order to maintain positive inclusive success effectively.
On the basis of the above discussion, it can be concludes that, competitive strategies are the core business strategy of an organization that improve innovation and sustainability of the corporation in an effective and a significant manner. Along with this, it is also observed that, these competitive strategies also provide competitive advantages and also affect sustainability of long-term organizational performance in a positive manner.