Friday, 20 November 2015

What are the 6 Critical Success Factor for Sustainability?

  1. Work to discover a unique way of competing so profits can be guaranteed over a limited period of time while considering the business environment that’s being developed.  The objectives and aims specify the competitive strategy and this establishes the competitive advantage.
  2. The competitive strategy allows the company to come out on top and outperform in the market. The two basic types of competitive advantage are differentiation and low cost.
  3. The company works towards becoming the lowest cost producer in their industry.  Gaining the cost advantage usually include proprietary technology, access to raw materials and economies of scale.
  4. A differentiation strategy is used so the company is able to produce and create products or services that are seen as being unique in the industry.  Customers respond well to companies that are able to differentiate themselves with their loyalty.
  5. Companies are in competition with each other but so are the entire supply chains. There are two basic types of supply chain, lean and cost efficient supply chains and agile and fast response supply chains that are service driven.
  6. Lean supply chains work well with a cost leadership strategy, they are successful if the logistics costs represent the high proportion of the cost of goods that are sold and if the chain gives sufficient possibilities to reduce and control the costs. The agile supply chain works well with the differentiation strategy, especially if it’s essential to have a customer oriented differentiation.

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