After an organization has a good understanding of its position in the marketplace and available opportunities, the organization can develop the overall organization strategy. Expound on this statement.

Competitive Advantage
After an organization has a good understanding of its position in the marketplace and available opportunities, the
organization can develop the overall organization strategy.
An organization can choose to create a competitive advantage through differentiation, cost, or response. Think
of an organization that uses each of these strategies and you will probably come up with some of the leaders in
that industry. For example, Nordstrom has utilized a differentiation strategy in department stores. Nordstrom is
known for a high level of customer service, and customers expect more when shopping there. Walmart is known
for its everyday low prices and cost advantages. McDonald’s is known for competing on cost. Amazon has built a
reputation on its response to changes in the marketplace. Through its innovative technology, Amazon can update
its website and information offered to each customer based on previous purchases.
Depending on the overall strategy, there are six specific strategies that an operations manager can utilize. These
are:
Flexibility in design and volume
Low cost
Delivery
Quality
After-sales service
Broad productline
An operations manager must consider all aspects of OM when determining the strategy appropriate for meeting
the overall organization goals. Each aspect will have an impact on the costs of the operations functions. However,
in some cases, customers are willing to pay extra for the products based on a strategy. For example, a high-quality
product with after-sale support may be more worthwhile to a customer to have the peace of mind such a
purchase ensures.
Part of achieving a competitive advantage is designing a process that will deliver a product or service in which
people are interested. When considering process design, it is useful to think of your product or service has being
largely standardized (little variety, as with adhesive bandages) or more easily customizable (lots of variety, as with
how you order a Subway sandwich). Similarly, it is also helpful to think of the product as being one that is
produced in large numbers (like a Snickers candy bar) or in small batches (as with the production of wedding
cakes). The Supplemental Media entitled “Process Design Dimensions” goes into greater depth with these two
dimensions of process design.