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An Industry’s key success factors (Skiffs) are those things that most affect Industry members’ ability to prosper in the marketplace-the particular strategy elements, prod cut attributes, resources, competencies, competitive capabilities, and business outcomes that spell the difference between profit and loss and, ultimately, between competitive success or failure. Skiffs by their very nature are so Important that all firms In the Industry must pay close attention to them-they are the prerequisites forIndustry success or, to put It another way, Skiffs are the rules that shape whether a company will be financially and competitively successful. In the beer Industry.

The Skiffs are full utilization of brewing capacity (to keep manufacturing costs low), a strong network of wholesale distributors (to gain access to as many retail outlets as possible), and clever advertising (to induce beer drinkers to buy a particular brand and thereby pull beer sales through the established wholesale/retail channels).In apparel manufacturing, the Skiffs are appealing designs and color combinations (to rate buyer interest) and low-cost manufacturing efficiency (to permit attractive re tail pricing and ample profit margins). In tin and aluminum cans, because the cost of shipping empty cans is substantial, one of the keys is having plants located close to end use customers so that the plant’s output can be marketed within economical shipping distances (regional market share is far more crucial than national share).Determining the industry’s key success factors, given prevailing and anticipated industry and competitive conditions, is a top-priority analytical consideration. At the very least, managers need to understand the industry situation well enough to know what is more important to competitive success and what is less important.

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They need to know what kinds of resources are competitively valuable. Misdiagnosing the Indus try factors critical to long-term competitive success greatly raises the risk of a missed erected strategy.In contrast, a company with perceptive understanding of Industry Skiffs can gain sustainable competitive advantage by training its strategy on Industry Skiffs and devoting its energies to being distinctively better than rivals on one or more of these factors. Indeed, companies that stand out on a particular SF enjoy a stronger market position for their efforts – being distinctively better than rivals on one or more key success factors presents a golden opportunity for gallon competitive advantage.Hence, using the Industry’s Skiffs as cornerstones for the company’s strategy and trying to gain sustainable competitive advantage by excelling at one particular SF Is a fruitful competitive strategy approach.

iscuss question By Contextual BLESS’S-01 An industry’s key success factors (Skiffs) are those things that most affect industry cut attributes, resources, competencies, competitive capabilities, and business competitive success or failure.Skiffs by their very nature are so important that all firms in the industry must pay close attention to them-they are the prerequisites for industry success or, to put it another way, Skiffs are the rules that shape whether a company will be financially and competitively successful. In the beer industry, the o know what kinds of resources are competitively valuable. Misdiagnosing the Indus erected strategy.

In contrast, a company with perceptive understanding of industry Skiffs can gain sustainable competitive advantage by training its strategy on industry one or more key success factors presents a golden opportunity for gaining competitive advantage. Hence, using the industry’s Skiffs as cornerstones for the company’s strategy and trying to gain sustainable competitive advantage by excelling at one particular SF is a fruitful competitive strategy approach.