Strategy and Competitive Advantage

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Table of Contents

Executive Summery
Literature Review
Mission statement
Organization structure
Research Methods
Result
Analysis
Conclusion
References

Executive Summery

This report entails the information obtained after doing a research on competitive advantage in respect to Top Five Marketing Company. The purpose of the study is to investigate strategy and competitive advantage of private marketing companies both in theory and practice.

The outstanding problem obtained from this study is that despite the awareness created by various scholars, investors still lack the basic knowledge on how to improve their earnings by using strategic and competitive advantages. This is the sole reason why this study was conducted.

Data was collected using questionnaires for employees, the managers and customers. The study sampled five hundred and seventy two employees and ten top level managers and fifty customers using purposive sampling techniques. Data collected was analyzed using both inferential and descriptive statistics. The techniques used in the data analysis were chi-square and Carl Pearsons product Moment Correlation Coefficient.

Major findings from the questionnaires clearly indicated that various staffing techniques were affecting good customer relation that had existed as a competitive advantage of this company for a long time. Based on these findings, the company can do better than fellow competitors only when it implements three strategies; lowering its prices, improving its customer care and producing additional benefits (Thompson, Peteraf et al, 2011).

Literature Review

Competitive advantage is the gain over fellow competitors by offering better quality products or services (Boxwell, 2002).Competencies are clusters of related knowledge or attitude that have an effect on a major part of ones job or even responsibility (Jackson, Hitt and DeNisi, 2003).In Top Five Marketing Company, competitive advantage is about increasing profits and having long term policies on improvement.

This study looks at what defines competitive advantage so that comprehensive strategies can be found to look into when building a competitive advantage. Since the products and markets are well differentiated in the Big Five Company, it is therefore easy to define this term. Customers are always present for a reason. Therefore, successfully growing businesses like Top Five should maximize on a strong competitive edge to create loyal customers.

Top Five Company relies on other companies for revenue by marketing its products and services whilst getting payments from them. Strategies that do not focus on volume and cost are deployed to expand the business. Since there are no productions involved, focus remains on staffing the organization, mission statement, building competitive advantage and structuring the organization and work effort (Thompson, Peteraf et al, 2011).

Staffing the organization

The experience and skills of a manager is important in improving the customer base. Managerial incompetence has for a long time lead to business failures (Thomson, 2014). This organization engages in questioning the integrity the management of the staff before they are recruited. Additionally, staff recruitments are purely based on merit and not biasness.

Mission statement

Mission statement is important because it gears an organization towards its goals. It always keeps the working structure in track to ensure no one fails. It also gives an advantage over other competitors because a better mission statement distinguishes a company from its competitors

Organization structure

An organization structure also influences strategy and competitive advantage. This happens because different structures used in an organization require hierarchy and a comprehensive command chain. An organization is required to consider the cost of each type of structure before implementation (Thomson, 2014). Competitive advantage in itself is enough advantage to an organization. Different organizations rely on different competitive advantages in their daily struggle to make it to the top of the business ladder.

Research Methods

The study was carried out by first preparing questions to be presented to the sampled population. The employees were picked from each department at random. Each employee was first informed on the purpose of the study and allowed to make inquiries in case of confusion on the questions. The questions were well structured, summarized, not long and confusing and were open ended to allow the respondents to provide required information (Singh, 2008).

The research design used was a descriptive case study. This research was carried out within the organization except for a few customers who neighbored the company. It mostly relied on qualitative methodology even though there were few elements of quantitative data needed like increase in the number of customers when new employees are brought to the company.

The research instruments and data collection methods were faced with a challenge of uncompleted questionnaires especially from the employees. Further findings showed that most of the employees were so busy that they could not remember to fill the questionnaires. Some also failed to return the questionnaires making it very difficult to retrieve the information. However, follow up procedures were induced to counter these challenges.

Result

Since this was a qualitative study, the findings in each of the study can be presented in details. This company is involved in IT solution, media marketing services and event management. First, it was discovered that Top Five Company had a mission statement where its road mark begins. The mission declares its purpose as a company and acts as a standard against which it weighs its actions and decisions. It also has a policy statement that is well developed and communicates well with the stakeholders.

The policy statement has helped in monitoring and governing protocols which authorize causes of action. This company is owned and managed by Mr. Albert Gayo and Joyce Akogta who have twenty years of experience. The respondents indicated that the management has provided good leadership and vision which have ensured the accomplishment of goals and objectives.

The company is fully equipped with better, customized customer services. Guests connected to this company always experience a unique extent of customer satisfaction (Boxwell, 2004). Since better services are also vital in improving competitive advantage the company has over its competitors and the projected strategies, the company has invested in providing promoters, entertainers, and corporate events to improve its services and customer satisfaction.

Staffing in this organization is, therefore, done by experienced personnel to prevent disastrous errors during and recruitment. IT specialists, for instance, are recruited after every two years to help with implementing necessary advancements in security. They are also expected to help in the installation and upgrading of the CCTV cameras and access control systems.

From the study, Top Five Company developed a Technical assistance Program where theories were developed to enhance peoples knowledge, skills and attitude. This program also helped in the implementation of other programs in the organization.

Being a marketing company, the study had its focus on marketing dissemination and communication. The manner in which the company had been persuading sellers and convincing target population was realized when many respondents indicated that it was the quality of the services (Singh, 2008).

One respondent, a Chief executive Officer of a neighboring IT company, indicated in his final statement that it was the good customer services that made him loyal to Top Five. The prices were relatively higher when comparisons were made with various marketing companies but Top Five still gave its customers reasons to stay with it. From the above findings, study showed that this company had various competitive advantages.

Nonetheless, the study also showed the progress of these advantages over time. What influenced the changes of the competitive advantages was discovered in details. The company never had experienced and skilled top managers at the beginning. The current human resource manager indicated that he joined Top Five in 2006. Being his first time as a manager he faced quite a number of challenges.

Most of the employees were asked whether there were improvement in the management operations. Amazingly, their responses were positive. They all acknowledged the fact that the companys management has improved considerably. Top five companies had a good customer base for a long time until five years ago when various marketing companies came up hence increasing the level of competition.

Though it lost customers, some few respondents indicated that there were some loyal customers who stood their grounds. The study showed that the loyalty was due to the ability of Top Five Company to treat employees with maturity and to handle customers and partners fairly. Unlike their competitors where it was the end that justifies the means, it maintained trust and respect to increase its customer base (Boxwell, 2004).

One respondent, in his last statement, wrote that attracting customers was like fishing. One could not just dive in and grab the fish. It, on the contrary, involved baiting the hook and dangling the warm. Top Five has, for all that time, had a good record when it comes to attracting the customers. Several other people, both in the management and customers, supported this sentiment.

Volume discounts, giveaways, and sales promotions are among the methods Top Five used to attract customers. Another competitive advantage given by 10% of the sample population was the brand name recognition which was carefully conceived by an excellent marketing plan. The brand name focused on the customers as the major focus because it contributed to the business success. The marketing manager acknowledged that this was a good marketing strategy.

Top Five company had is structure in terms of functions. There was the overall Chief Executive officer. Those who reported to the CEO included the IT manager, the marketing manager, finance manager, human resource manager, operations manager and finally the public relations manager.

This study showed that the functional structure become very expensive due to increase in markets. Apart from media marketing and event management, Top Five Company wanted to venture into other investment firms. This would mean hiring a new management team as it has always been before. This response was given by one of the Human Resource Managers. Several suggestions from other respondents also emphasized the need to restructure the system basing their ideas on the increase in cost.

The company had both strengths and weaknesses. It had for a long time focused on solving the issues that caused the gaps to ensure that the competitors did not bridge the gap. It was also discovered from the study that there were various potential strengths that the company had not discovered yet. Such included availability of time, necessary connections and money. The company also had a strategy where key members of the company were assessed by outside experts (Evans, 2012).

Analysis

The information acquired from the sample population helped in making certain conclusions. The information was analyzed in different stages depending in the response obtained. Out of the people who filled the questionnaires, 80% were okay with the current mission statement. Among them, 20% were customers while the rest were managers and employees. This information meant that the companies that pay Top Five to Market their products approve of this statement.

It is therefore right to say that before making a deal with the company, a mission statement can also form part of the customers needs (Boxwell, 2002). As for the company employees and top managers, the mission statement does not matter to them because they are guided by the managers to do their work; this was proven by some employees who did not even know the mission statement.

The responses by managers to questions relating to the experience they had in the company also lead to a conclusion that this company had done a great work in utilizing its human resource. Trainings play an imperative role in creating such great competitive and experienced personnel.

The whole structure was filled with experienced managers and staff. Among the six hundred and eighty two respondents, one hundred and three people gave a positive response when asked whether they liked the way the organization did the staffing. The employees were, however, not satisfied by the way duties were delegated to them. Reasons why such issues arose were because managers never got feedbacks and suggestions from their subordinates (Jackson, and DeNisi, 2003).

Conclusion

From the findings in this study, Top Five Company has a good mission statement. Customers were incorporated in this statement. This can be attributed to the reason why they indicated that they love the statement. Due to increased competition, the company needs to do more in terms of strengthening competencies and core capabilities.

The organization has a good structure except for a few hiccups that need addressing. Various respondents were not okay with the current structure though some agreed but suggested that some adjustments should be done. The employees were also okay with the work effort. The customers showed that they supported the current workers in the organization. The work done by employees should, however, be reduced because some respondents complained of working both in the office and going out to carry out marketing duties.

The study also showed that though the employees had such work load, they understood that the organization was still working out something for them and until then they shall practice patience. Findings on the competitive advantage and how they have changed helped in this study because recommendations could then be made on the issues that had caused the weaknesses like increase in competition.

Actually, this is the main problem that affected Top Fives competitive advantage. There was need to advance more like enter into other ventures in order to increase funds and expand the business so as to increase customer base. This study, therefore, proved that success does not really mean that businesspeople should build a market share. Success is about connecting with the target using the provided strategies and the competitive advantage.

References

Boxwell, R. J. (2004). Benchmarking for competitive advantage. New York: McGraw-Hill.

Evans, N. D. (2012). Business agility: Strategies for gaining competitive advantage through mobile business solutions. Upper saddle River, NJ: Financial Times.

Jackson, S. E., Hitt, M. A., & DeNisi, A. S. (2003). Managing Knowledge for Sustained Competitive Advantage: Designing Strategies for Effective Human Resource Management. San Francisco, CA: Jossey-Bass.

Singh, M. (2008). Strategic management and competitive advantage. New Delhi: Global India Publications.

Thompson, Arthur A., Peteraf, Margaret., Gamble, John E.& Strickland III,A.J.(2011).Crafting and Executing strategy-The Quest for Competitive Advantage: Concept and Case (18th Ed) New York: McGraw-Hill.

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