Question

Discuss what are possible reasons for companies to compete on business functions and on product/service exp.

Answer 1

Answer :-

There are various possible reasons due to which the companies compete with each other onto the basis of business functions and the product/service experience in the industry. These reasons are discussed below ;

(1).Product and market research:-

Due to this reason, the companies target the functions to compete in the business industry is because of the product advantage over the others. One can effectively track the various business functions and the product experience to draw the product life cycle of various products offer by various companies. Studying the same, the companies could get to know where the product lies in the PLC cycle and how effectively they could develop their strategies to compete with the same product. This helps the firm to strategically plan and market their products and services and have a goodwill maintained in the environment.

(2).Having Vital and Effective Resources:

Another possible reason is the VRIO framework which helps in targeting and knowing the resources of the business effectively. By competing on the business functions of our competitiors, we can analyse what resources are being used under the various functions and how effectively these resources are providing competitive advantage on the basis of their value, rarity, inimitiability and the way the company has kept those resources organised to have a competitive edge. We can study them to have a good hold in the market.

(3). Exploiting Core competencies :-

And the last one is, Targeting and competing with different companies onto the basis of core competencies or the functions of the business would give the competitive advantages where one would be effectively able to research and undeestand why the competitior's function is better, the unique traits used in the same function and how better function could be implemented in our company to have an edge over the market.