What is the role of quality as a competitive advantage?

Quality as a competitive advantage is considered to be one of the basic ways that individual companies and national economies can successfully compete on the global market. It contrasts with a comparative advantage, which was considered to be a key method of facilitating trade and economic growth until the mid -80s. The comparative advantage focuses on businesses or nations that produce these goods and services in which they are most effective, and trading in products that can be achieved more efficiently in other countries. Although the comparative trade is considered mutually beneficial, it did not directly take into account the quality as a competitive advantage and instead focused on the cost of making goods instead of their final viability and durability after completion.

All competitive industry seeks to distinguish by handling several key factors. These include the price of the goods and services, comfortable places from which they can be POSguying, and creating a loyal customer base. Where quality comes into the game as a competitive advantage, it is in the background or supporting role because it has a direct impact on every other aspect of business strategy. The premium price can be charged for goods based on perceived excellent quality, and this tends to make customers naturally loyal to the brand, which makes it easier to expand than competitors can achieve in the same industry. The quality also adds a strategic benefit for businesses because it negates most of the negative feedback and returns from customers and reduces both scrap and reworking in the production process.

In the 2011 survey, 70% of 3,400 small and medium -sized enterprises in 34 different national economies evaluated quality as a competitive advantage as their primary concern. Unique exceptions have been recorded in India and China, with Indian enterprises also evaluate quality as very important, but puts more emphasis on brand recognitionAnd the price than elsewhere. In the Chinese companies respondents, only 46% evaluated quality as the highest concerns in competitiveness, which may not be surprising because China has created its name internationally for being more competitive at the price than most products from other economies. China also remains an exception to the rule, as it continues to find success around the world by focusing on a comparative advantage for its goods and services. Nations, where businesses evaluated quality as a competitive advantage more than elsewhere in the world, included 84% of the Latin American business companies with regard to the most important, and 92% in Vietnam and 85% in Taiwan considered quality to be extremely important for business success.

A more complicated view of quality as a competitive advantage in the business environment gets into what is called quality deployment (QFD). QFD will try to break two -out quality into positive and negative aspects as a guide for companies to focus their efforts on the positive quality benefits of OPROThose else, because it is considered a stronger driver for building a company. An example of the negative aspects of the quality that businesses can focus on include negotiations with disappointed customers to an excessive degree. Instead, if the company focuses on those customers who are most satisfied with their products or services and find ways to improve this aspect of business, the company is more likely to lead forward.

Because quality is a subjective term that the business rivals can define quite differently, attempts to divide it into several different objective categories, such as the quality of design and quality of conformity, have been made. The quality of the design mainly concerns the functionality and durability of the product in terms of what the customer really wants to use. The quality of the conformity, the other side, focuses on the original intention for which the product was carried out regardless of the different uses on which the market is launched. Common aspects of both approaches to the view of the products are together fordivided into what is called Total Quality Management (TQM), which must remain aimed at the customer to facilitate the survival and growth of all business efforts.