Chapter 7, Discussion Question 10: Identify the competitive advantage of each of

Question

Chapter 7, Discussion Question 10: Identify the competitive advantage of each of the four firms identified in Discussion Question 9. (Discussion Question 9: Identify manufacturing firms that compete on each of the four processes shown in Figure 7.1. ANSWER: 1. Process Focus (low-volume, high-variety, intermittent process) a. Hospitals b. Ship building manufacturer c. Machine shops i.e. drilling machine 2. Repetitive Focus (modular) a. Harley-Davidson b. Car or TV manufacturer 3. Product Focus (high-volume, low-variety, continuous process) a. Frito-Lay b. Sugar plant c. Oil refinery 4. Mass Customization (high-volume, high-variety) a. Dell Computer

Explanation / Answer

ANSWER:

1. Process Focus (low-volume, high-variety, intermittent process) a. Hospitals b. Ship building manufacturer c. Machine shops i.e. drilling machine

Competitive advantage – high degree of product or service flexibility, through the use of innovative equipment and automation with the use of electronic controls and computer software

2. Repetitive Focus (modular) a. Harley-Davidson b. Car or TV manufacturer

Competitive advantage – more structure, and allows more customizing

3. Product Focus (high-volume, low-variety, continuous process) a. Frito-Lay b. Sugar plant c. Oil refinery

Competitive advantage – standardization and effective quality control.

4. Mass Customization (high-volume, high-variety) a. Dell Computer

Competitive advantage – rapid low-cost production that meets customer’s unique and changing needs. More choice to customer

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