A competitive advantage can be gained by offering the consumer a greater value than the competitors, such as by offering lower prices or providing quality services or other benefits that justify a higher price. The strongest competitive advantage is a strategy that that cannot be imitated by other companies.
This core purpose is expressed in a carefully formulated mission statement. Like the core values, the core purpose is relatively unchanging and for many firms endures for decades or even centuries. This purpose sets the firm apart from other firms in its industry and sets the direction in which the firm will proceed.
The core purpose is an idealistic reason for being. While firms exist to earn a profit, the profit motive should not be highlighted in the mission statement since it provides little direction to the firm's employees. What is more important is how the firm will earn its profit since the "how" is what defines the firm.
Initial attempts at stating a core purpose often result in too specific of a statement that focuses on a product or service. To isolate the core purpose, it is useful to ask "why" in response to first-pass, product-oriented mission statements. For example, if a market research firm initially states that its purpose is to provide market research data to its customers, asking "why" leads to the fact that the data is to help customers better understand their markets.
Continuing to ask "why" may lead to the revelation that the firm's core purpose is to assist its clients in reaching their objectives by helping them to better understand their markets. The core purpose and values of the firm are not selected - they are discovered.
The stated ideology should not be a goal or aspiration but rather, it should portray the firm as it really is. Any attempt to state a value that is not already held by the firm's employees is likely to not be taken seriously.
Visionary Goals The visionary goals are the lofty objectives that the firm's management decides to pursue. This vision describes some milestone that the firm will reach in the future and may require a decade or more to achieve.
In contrast to the core ideology that the firm discovers, visionary goals are selected. These visionary goals are longer term and more challenging than strategic or tactical goals. Most visionary goals fall into one of the following categories: Target - quantitative or qualitative goals such as a sales target or Ford's goal to "democratize the automobile.
Role model - to become like another firm in a different industry or market. For example, a cycling accessories firm might strive to become "the Nike of the cycling industry.
For example, GE set the goal of becoming number one or number two in every market it serves. While visionary goals may require significant stretching to achieve, many visionary companies have succeeded in reaching them.
Once such a goal is reached, it needs to be replaced; otherwise, it is unlikely that the organization will continue to be successful.The need for constant reinvention is a given in today’s business environment.
And while a breakthrough product or concept can catapult an organization ahead of its competitors, in these fast-paced times, that advantage is often short-lived. Southwest Airlines Co. (NYSE:LUV) Q1 Earnings Call April 26, PM ET Executives Ryan Martinez - Southwest Airlines Co.
Gary C. Kelly - Southwest Airlines Co. Tammy Romo - Southwest.
While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been is its deep focus on hiring the right people.
Southwest prides itself on. Strategic Analysis Of Southwest Airlines Case Study Management Essay. Print Reference this. Published: 23rd March, The paper first discusses the case of southwest airlines, the first successful low-cost carrier in USA.
He argues that a firm have to make a choice between these generic strategies to achieve a competitive advantage in the. – Journal of Management and Marketing Research How small business, page 3 businesses selected differentiation as a basis for their competitive strategy.
One of the techniques used in Blue Ocean strategy is the strategy canvas. It is a simple but very powerful visualisation methodology.