Riordan Competitive Advantage Paper
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Riordan Competitive Advantage Paper
Introduction
Team B will discuss the competitive advantages Riordan Manufacturing has in comparison with Game Stop, which competitive strategy Riordan could use to improve its innovation and sustain business operations domestically, and globally, why the strategies were chosen, how they might affect sustainment of long-term performance of the organization, and how Riordans business strategy would be affected by the global market.
Riordan Manufacturing is a manufacturer of plastics worldwide. It is owned by Riordan Manufacturing Industries. It is a Fortune 1000 enterprise. The research and development is headquartered in San Jose. Custom plastic parts are in its product, which is produced in its plant in Pontiac. The Albany plant produces plastic beverage containers. The facilities in China, Georgia, and Michigan produce plastic fan parts. Aircraft manufacturers, manufacturers of automotive parts, manufacturers of appliances, beverage makers and bottlers, and the Department of Defense are Riordans major customers.
Riordans competitive advantages
Competitive advantage is a superiority gain by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities. There are two main types: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is an organization power to construct a good or service at a lower cost than its competitors, and in turn sell it at a lower price. A differential advantage is when an organizations products or services are different from its competitors and seen as better in the minds of the competitors customers.
GameStop Corporation and Riordan Manufacturing Company are both main industry leaders in their own field. One major competitive advantage that each company has in common is a differential advantage. Both organizations have a variety of items that meets the need of their consumers as well as them both selling their products nationally and internationally. GameStop Corporation and Riordan Manufacturing Company increase their sales by offering price discounts, and sale promotions to ensure that their prices are affordable to the customers.
Riordan currently uses an industry standard “Six Sigma” competitive strategy in their organizations. To improve innovation and sustainability the business operations both in the United States and in the global market Riordan needs to implement a strategic capacity plan. This plan will increase effectiveness, add improvement to its supply chain, and implement the methods and concepts of a more stream line production this will gain value over time this can sustain competitive advantage.
Competitive strategies and sustainability affect
The organizations that succeed in the twenty-first century are those that can solve problems quickly and creatively. These strategies were chosen because Riordan can use their brand name in advertising and promotions. As their name becomes a household name the value of their products and the organization increases. They can cater to the needs of the customers. As trends and manufacturing prices changes the organization technology changes. Adaptability increases the staying power of the organization. The virtual world can make the Riordan brand a household name locally and global. The organization long-term sustainability depends on recruiting new customers and retaining current customers. By making quality products and distinguishing their brand in the plastic industry Riordan becomes the model to pattern themselves after. Innovations in technology afford Riordan the opportunity to expand research and development. They must remain at the forefront in coming out will the product first. This guarantees they set the standard. These strategies will provide long-term performance and profitability. The affordability of the products is essential to the long-run performance because they do not price themselves out of the market. The unique products are vital to increasing sales on a global scale. The value of the organization