The Competitive Advantage of Industrial Districts Theoretical And Emp

Question: Describe about The Competitive Advantage of Industrial Districts for Theoretical And Empirical Analysis? Answer: 1: Circuit City, an electronic retailer in United States started its operations in 1949 under the name of Wards Company. The said company expanded due to its innovative promotional policies like free in home demonstration, which gave the customers a Television for a night in their house free of charge. The Company soon got popular and expanded its product range from televisions to other electronic appliances with a new retail model under the name of Circuit City supermarket providing discounted rates to customers for electronic appliances compared to their competitors (Wagner Hollenbeck, 2014). However, Circuit City soon lost its competitive advantage as it failed to follow the 4S business model. The 4S business model was based on service, selection, savings, and satisfaction. However, the company failed to maintain its basic business structure by neglecting their well trained staffs. However, the primary reason of the failure of the company was when they laid off 3000 highly paid sales personnels of the company. The said lay off hampered the business model and the former employees of the company helped the competitors (Rothaermel, 2015). To survive in the market, Circuit City should have refrained from laying off their staff managers. The company should have adopted innovative strategies to reduce cost by introducing special discounts, special deals with manufactures. The Company could also shut done unprofitable stores. 2: Competitive Advantage means that an existence of a condition or a circumstance in the market that puts a company over and above in a favourable or a higher business position than its competitors. A company enjoys competitive advantage when it outperforms or introduces certain strategies, which makes the company more preferred by the customers. While buying a particular product from the market, I usually select a product from a company keeping in mind good quality, reasonable price and convenience of a store for buying the same. If a product I desired to buy required after sale services, I would buy a product from the company, which provides efficient and quick after-sale services. However, my choice while purchasing a product primarily based on the quality of the product, which is being offered at a reasonable price. The three products I choose to purchase are as follows: Shoes If I have to purchase a pair of shoes, I usually buy the same from Clarkes as they provide the best quality sole in their shoes, which makes the shoes very comfortable, and worth every dollar, you spend on it (Campbell, Coff Kryscynski, 2012). Cosmetics I usually buy cosmetics from the company called MAC. There is a lot of competition in the market for cosmetics products as multiple companies provide a wide range of products. Therefore, I usually base my decision on a product, priced reasonably in the market. Groceries While purchasing routine groceries, I prefer visiting Wal-Mart as it is close to where I live and it provides multiple choice of routine products under one roof. 3: Samsung Electronics was a mediocre company, which transformed into an international leader when the new Chairman of the Company namely Mr. Lee introduced a new management programme in the company which impacted the internal working environment of the company. Mr Lee suggested to review the management strategies of the company using the Genetic Value Chain Model for Management. The new management strategies introduced the following changes: Staff Management The Company introduced open management in the area of staff management. Open management suggested respecting the innovation and creativity from employees by removal of obstacles in the management chain to enhance the efficiency of the employees (Harrison, Bosse Phillips, 2010). Marketing The Marketing and Design strategies was based on its focus on four fundamental principles. The principles are as follows: Company adopted a customer focus approach, introducing products, which the customers needed. Company realized the importance of well-designed products The products designed by company were simple and efficient Designs were introduced which reflected the customers routine lifestyle Quality Management The Chairman of Samsung introduced the concept of quality management in the internal working of the company to improve the quality of the brand Samsung. Chairman Lee motivated the employees of the company to make a promise to the customer for providing a high quality product and fulfilling the same to create a successful brand (Hemmert, 2014). 4: For many years not, the gasoline engine have been a dominant technology in the automobile industry. However, due to the shortage of fuel availability like petrol and diesel, the gasoline engines may lose its position as a dominant technology in automobiles sector. Also, the introduction of new technologies like hybrid cars has affected the gasoline engines future in the automobile sector. The introduction of electric run cars reduced the dominance of gasoline engine. However, to develop the same, we need to develop infrastructure and advanced facilities. For electrical runs, there is a need for charging stations as the electrical cars available now are capable of running for just 100-200 kilometres without a recharge (Garcs-Ayerbe, Rivera-Torres Murillo-Luna, 2012). Among the car companies, Toyota seems to be influencing the future car technology in the automobile sector. Toyota had initiated the use of petrol -electric in hybrid cars, appreciated by the developed countries globally. It developed a technique, which was a balance between technology and environmental safety (Bagella Becchetti, 2012). With introduction of hybrid cars, the oil companies will observe a loss in demand for oil and thus will have to regulate their pricing, which will reduce the cost of oil products. The car manufactures have to change their infrastructure to manufacture electrical cars. The gasoline stations will have to change to charging stations, which are fully equipped. The consumer will have to let go of their gasoline driven cars and purchase electric cars (Petroski, 2010). Reference List Bagella, M., Becchetti, L. (Eds.). (2012).The Competitive Advantage Of Industrial Districts: Theoretical And Empirical Analysis. Springer Science Business Media. Campbell, B. A., Coff, R., Kryscynski, D. (2012). Rethinking sustained competitive advantage from human capital.Academy of Management Review,37(3), 376-395. Garcs-Ayerbe, C., Rivera-Torres, P., Murillo-Luna, J. L. (2012). Stakeholder pressure and environmental proactivity: Moderating effect of competitive advantage expectations.Management Decision,50(2), 189-206. Harrison, J. S., Bosse, D. A., Phillips, R. A. (2010). Managing for stakeholders, stakeholder utility functions, and competitive advantage.Strategic Management Journal,31(1), 58-74. Hemmert, M. (2014). The business system of Korea.Asian Business and Management: Theory, Practice and Perspectives, 2nd edn. Basingstoke, UK: Palgrave Macmillan, 219-238. Petroski, H. (2010). Engineering: Technology Plus.American Scientist,98(4), 280-284. Rothaermel, F. T. (2015).Strategic management. McGraw-Hill. Wagner III, J. A., Hollenbeck, J. R. (2014).Organizational behavior: Securing competitive advantage. Routledge.