Operations Strategy

1
Operations Strategy

• Topics
• 3 main strategies
• Competitive priorities in OM
• How it all fits together (or should)

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3 Main Strategies
3
Strategies OM Competitive Priorities

• Differentiation
• High quality
• Exceptional service
• Design flexibility
• Low cost
• Response
• Flexible
• Reliable
• Rapid

• Flexibility
• Design
• Volume
• Low cost
• Delivery
• Speed
• Dependability
• Quality
• Conformance
• Performance
• After-sale service
• Broad product line

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Competitive Advantage
Differentiation (better)
Quality conformance
Low cost (cheaper)
Response (faster)
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Competitive Advantage
Differentiation (better)
Performance quality Broad product line After-sale
service Design flexibility
Choose 1
Choose 2
Quality conformance
Delivery speed Delivery reliability Volume
flexibility Design flexibility
Low cost
Low cost (cheaper)
Response (faster)
6
Competitive Advantage
Differentiation (better)
Choose 2
Quality conformance
Delivery speed
Low cost
Low cost (cheaper)
Response (faster)
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Competitive Advantage
Differentiation (better)
Performance quality
Choose 2
Quality conformance
Delivery speed
Low cost (cheaper)
Response (faster)
8
Competitive Advantage
Differentiation (better)
Choose 2
Quality conformance
Volume flexibility
Low cost
Low cost (cheaper)
Response (faster)
9
Competitive Advantage
Differentiation (better)
Broad product line or Design flexibility
Choose 3
Mass customization
Quality conformance
Delivery speed
Low cost
Low cost (cheaper)
Response (faster)
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Strategy for new restaurant
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Southwest Airlines