No business is free from expenses. It is a key element of the financial report of the business. A business is not possible to earn without the workforce and every businessman wants to see their employees and workers doing their best and being one step ahead according to how they are expected to perform and how they are properly compensated.
Competitive advantage you can have for your business:
Super efficiency, quality and innovation.
They represent the backbone of every company because an entity cannot perform without them, this being said, the backbone must be in its best condition. The optimization of the workers means increased financial performance for the whole company, benefiting everyone including the target market as long as the quality is not compromised from their increased productivity. The backbone and the management must work together to accomplish their goals according to the timeline they have set.
Every company aims to reduce their fixed costs arising from their machineries and factory equipment’s depreciation, through their production efficiency. The idea here is that the greater number of goods they produced, the better for the fixed costs to be allocated and spread over per goods produced. In order for this to happen, companies need to have an efficient and increased level of production. We can apply and take advantage of the Economies of Scale wherein the cost per unit is decreased as the scale of production increases, therefore, diminishing the cost per unit of the product. This is really an advantage for the manufacturers so that they can even out the costs they incur with the goods they are working on.
Superior efficiency has two main factors: the first one is the time. Being efficient means accomplishing tasks within a specific period of time. We know that there are only limited hours allotted in a day and tasks pile up every second, thus, management employees and workers must track their time as much as possible. Having unproductive workers are the loss of the company, therefore teamwork and communication are vital in an organization. The second factor is the skills of the workforce. It is the responsibility of the human resource manager to screen and filter the employees they choose to work and also, the role of the management to train their employees to improve their productivity and develops skills that would mean greater efficiency for the company.
Each department must work in their best shoes and accomplish specified tasks that would increase the market value of the company. Superior quality is an important competitive advantage of one company because it enables the company to place a reasonable higher price for the good in exchange of an amazing quality products that every customer would feel good to pay for. Before the outputs are made, the production process must be applied with quality management and strategies to ensure polished finished goods. Also, the raw materials must be in its best quality that would not disappoint the market. With deficits from sudden business expenses, some prefer to cut cost by sacrificing top quality ingredients just to offset the loss which may affect the trust and reputation of the company in the long run that is why it is better to have quality products with higher price to even out the costs.
Many start up businesses right now are becoming threats even to established companies, moreover, customers’ standards continue to improve as inventions keep on popping. Superior Innovation is the ticket to stay on the market for a long time, and it is the deciding factor to maintain your clients. By innovating, the products keep up with the trends that keeps the customers interested. This is really an important competitive advantage that means producing useful and impactful products or services that would improve the brand reputation of any company and the lifestyle of the users. This is not just to benefit the company but to benefit even the market that chooses to pay for the goods and services you are offering.
I see you are a business student and this are all what you have learned