Question

Identify functional strategies that build competitive advantage through superior efficiency, quality, innovation, and customer responsiveness (Specifically: Finance, Operations, Human Resource Management, Marketing)

Answer 1

Answer)

Functional level strategies play a crucial role in successful implementation of Corporate strategy.Functional level strategy which can help in building of competitive advantages are the following:

A functional level strategy must always aims at efficiency. Efficiency can be adopted by exploiting economies of scales, reducing customer defection rates by employing TQM,Innovation of new technologies etc.

Human resources Management play a crucial role in building up core strength to the organisation.They must be well trained and often encouraged with rewards and appraisal of performances etc for boosting their spirits and work for the good of the organisation.

Increase in efficiency and Innovation of new technology helps in shining financial advantages as it leads to reduction of cost, production of more units,improve in quality of products and differentiation of products helps in charging premium price from the consumer and helps in gaining financial edge in the competition.

Marketing is another area which leads to competitive advantage.Exploring the markets,Making products based on the need of buyer as he is the one who pays for acquiring goods,then clearly explanation of advantages of the product, choosing right distribution channels to reach the consumer and providing best after sale services to the customers will gain competitive advantage and functional functional level strategy must be designed accordingly.