(Chapter 3 of OM6, Collier + Evans)
MMM267: Business
Logistics –Week 2
COLLIER/EVANS
OM 6Operations + Supply Chain Management
3
Operations Strategy
LEARNING OUTCOMES
1. Explain how organizations seek to gain
competitive advantage
2. Explain approaches for understanding customer wants and needs
3. Describe how customers evaluate goods and services
4. Explain the five key competitive priorities
5. Explain the role of organizations management, sustainability, and operations in
strategic planning
6. Describe Hill’s framework for operations strategy
3
Competitive Advantage
Firm’s ability to achieve market and financial superiority
over its competitors
Requires:
•Understanding customer needs and expectations
•Building and leveraging operational capabilities to support desired competitive priorities
LO 3-1
4
Customers’ Expectations
Understood by segmenting customers based on their unique
wants and needs
Order qualifiers: Basic customer expectations
•Minimum performance level required to stay in business (must meet these –
‘hygiene elements’)
Order winners: Goods and service features and performance characteristics that
differentiate one customer benefit package from another
•Help win the customers’ business (helps to stand out from the crowd – ‘motivator
elements’)
LO 3-2
5
Evaluating Goods and Services
LO 3-3
6
How Customers Evaluate Goods and Services
LO 3-3
