1. What is Vancity 's competitive advantage over other types of financial institutions? As globalization increased competition through the worldwide interconnectedness, it became more difficult to hold on to a company’s competitive advantage. Vancity, founded in 1946, enjoys its own competitive advantage to be one of the greatest employers in Canada.
The Great Recession was a period of general economic decline observed by world markets beginning around the end of the first decade of the 21st century. The recession was a result of a financial crisis in 2007 which effected the years to come . The primary source of this problem was that banks were creating too much money. In addition, banks had doubled the amount of money and debt in the economy. Resulting in a financial crisis as the government and banks had failed to constrain the financial system’s creation of private credit and money.
According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. TJ is Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the company’s strategy. Recommendations and
The Great Recession started for the United States in December of 2007 and lasted until June of 2009. This was the worst recession in U.S. History since World War II. During this time, there was a 6.1 % loss in jobs, due the job shortages about 27 million people we either unemployed or underemployed. This affect the age household many people household income dropped increasing the poverty in America. In economics, a recession is a decline in economic activity affecting Gross Domestic Product or GDP for at least two consecutive quarters causing negative economic growth (Downes and Goodman).
Looking at the impact of external environment on select companies, we’ll look at both Ford Motor and General Motor companies. The Ford Motors company approximately had 14 percent market share in the U.S. automobile industry (David, 2011). The company had recovered a lot after the impact of recession in the year 2008. The company has been investing in developing vehicles which use alternate energy sources, and is having global presence and brand reputation for its automobiles. The company has received government support during the recession period, and had to cut down thousands of jobs and adopted latest machinery for enhancing the productivity of the company.
The Automobile Industry is very complex and to start a business in automobile industry high level of capital investment is required. Not only huge amount of money but also a labor force will be essential, which are the main barriers to enter into the automobile industry. For Example, the US auto industry was once considered safe until Honda Motors gave a big challenge to these companies by opening a manufacturing plant in Ohio. The Automobile industry includes many other industries as well for example, tires and seat manufacture. These industries are the suppliers of the Automobile industry.
Competitors – The industry that Nissan currently operates in provides lots of potential competitors for them as many automobile companies are developing electric cars which are something Nissan are very keen on focusing on. Nissan currently only run a small market share of the industry so many competitors are dominating the market such as Ford, Vauxhall etc. Nissans competitors have many strengths and weaknesses against Nissan. Some companies such as Ford focus heavily on fuel powered cars which means they will have an advantage against Nissans fuel powered range but Nissan will have an advantage over them with Nissans electric cars and the amount of research that has been put into it. Other companies such as Tesla whose main focus is electric cars are a fairly big competitor towards Nissan and the Nissan leaf range.
INTRODUCTION: Mercedes Benz is a globally known brand, originated in Germany. Benz is specialized in automobiles like cars, buses, trucks, etc. EXTERNAL BUSINESS ENVIONMENT: The automobile industry is a multi-billion industry with large brands in market. It’s important to carry out analysis on microenvironment before formulating strategies.
In regards to the former, Toyota has been successful in implementing cost reduction policies such as the Just-in-Time (JIT) model that have not only minimized production costs, but also selling prices across all Toyota models (Thompson, 1). In regards to the latter, Toyota has constantly employed a model of innovation as the key to differentiation, which is the reason why Toyota is able to manufacture all types of vehicles to uniquely suite not only the geographically landscape of their target regions, but also the pockets of the consumers (Thompson,
An organization that has a team or horizontal style of work structure and management is called as contemporary organization. Instead of a strict hierarchy, the power is spread out to the whole team in the contemporary organization. It is a more responsive and flexible. Traditional organization is changed to the contemporary organization of business. The traditional organization style concentrated on a pyramid order, with supervisors and managers controlling all components of the representatives beneath them, including interpersonal connections, ventures and disciplinary activities.
The analysis will be made on a basis of combination with the pre-understanding of crisis management theory and the empirical data, by answering the three research questions respectively as follows: What are the reasons that force Toyota coming to the troublesome crisis? Crises pose certain risks to an company – potentially affecting critical aspects like reputation, image, brand equity, credibility, publicity, financial viability, legitimacy, community standing, etc. (Smudde, 2001). In auto industry vehicle recalls happen all the time and everywhere.
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
Political factors have huge influence on the profitability of the automobile industry. Political also include goods and services which the government wants to provide and goods
5.3 Country position and attractiveness According to Porter (1990), the level of competitiveness on a country depends on the capacity of the industry and the skills to upgrade and innovate. The competitive advantage is produced and sustained on the differences in values, economics structures, culture, institutions, history, and other factors that contribute to competitive success. Therefore, companies as well as nations have to fight for a position on the market as centers of production or industrialization of products.
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
