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Extra resources for Architecting Enterprise: Managing Innovation, Technology, and Global Competitiveness
Some companies focus on a narrow range of products and build high image among customers. Product attributes vary in terms of shape, design, style, color, and added advantages. Further, customers may view the functionality of the product as the satisfaction derived from it. Dimensions of the functionality are highly product-specific. In competitive markets, the efficiency of services discharged and extended to buyers also contributes to building or breaking marketplace strategy. Products, in the same market or competitive domain, largely vary in their availability, which may be due to weak or faulty supply chain management.
Comparative advantages in business are principally woven around the five fundamental factors of production: 1. Land (including physical and business infrastructure) 2. Labor (semi and unskilled manpower, wages, labor regulations) 3. Capital (financial resources, investment options, and returns on investment) 4. Technology (cost of technology), and 5. Managerial know-how (competencies and capabilities). It can be argued that world output would increase when the principle of comparative advantage is applied by countries to determine what goods and services they should specialize in producing.
A review of available literature suggests that marketing theory and entrepreneurial theory have evolved simultaneously. Successful entrepreneurs develop their business strategies for the market to accomplish the following objectives: • Provide the best offer to the market • Discover better solutions to buyers’ needs at lower costs as compared to competitors • Create outstanding customer value • Develop consumer, market, and product orientation strategies, and • Execute transactional and relational marketing-oriented strategies in the competitive marketplace.