Question

how important is process efficiency to competitive advantage?

Answer 1

Competitive advantage is the position of a company which allows it outperform its competitors.

An organisation can achieve a competitive advantage through cost leadership or differentiation or both.

For a company to be a competitive advantage it should have an upper hand in terms of performance of its entire supply chain & product/service quality. This can be achieved by improving the effiency of its Processes.

Replacing/Eliminating the questionable practices in the process can help achieve its goal of efficiency.

Efficiency is the most important aspect to lead to a competitive advantage.

It can be rightly said that "without efficiency, there is no competitive advantage"

Efficiency in terms of its employees, machine, supply chain and customer service work hand in hand to enable the competitive advantage a firm possess.

Competitive advantage leads to the gaining of more profit for the same product or service provided than its competitors. This extra gain is due to extra efficiency like Six Sigma.