Jul 9, 2020
category: Management

In order to increase the customer demand, the company should work on increasing its competitive advantage over other companies specializing in the same field. Specifically, there are different success factors, which could contribute to the increased competitiveness of the company, such as efficient differentiation strategy, pricing policy, customer orientation, and environmental policies. All of these issues should be discussed in detail in regard to the case under analysis.

Key Success Factors of the Competitiveness

Many organizations should consider all the aspects of efficient management contributing to the competitive edge. In the research conducted by Cheraghi, Dadashzadeh, and Subramainan (2004), multiple success factors have been explored in order to define how they contribute to the organizational performance and supplier selection process. The latter plays a crucial role in the effective management and improved competitiveness. The increased competition is the result of the globalization process, but the company should be more concerned with the choice of suppliers because it contributes to the effective delivery and exchange of the products.

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Customer Response to the Product Quality

In order to sustain a competitive advantage in retail business, the attention should be paid to the development of the customer loyalty through the increased product quality. In this respect, Clottey, Collier, and Stodnick (2008) have conducted the study in order to determine the customer loyalty for the large retails with reliance on 972 responses. The results have shown that the product quality, service quality, and brands contribute to the customer loyalty and define the retailer’s willingness to provide the goods and services to the clients. The emphasis should also be placed on the service management because it can also drive the customer loyalty; therefore, the investments should be made to the reward programs, trainings, and daily operations of the retail stores. Although the paper defines the quality as the priority in improving the customer loyalty, the additional strategies for improving the quality itself should be outlined.

Apart from the issues contributing to the higher customer loyalty, there are also the factors that have a potent impact on the customer satisfaction and service quality. In particular, Reddy, Reddy, and Azeem (2011) have conducted the research on the concept of loyalty as an important phenomenon that attracted a great interest of the marketers and retailers. They give a higher ratio of expenses to the main stores, are less likely to switch to other stores, and are more tolerant to higher prices. The stores, therefore, provide a higher ratio of the committed clients, which contribute to the higher returns for the client. While focusing on these variables, the authors have defined, “Service quality has more direct influence on loyalty than store satisfaction” (Reddy, Reddy & Azeem 2011, p. 354). The merchandise quality provided by the retailer was not detected to influence the store loyalty because it is usually an inherent element of the customers’ sales. Additionally, the customers might not consider the quality of sales a significant factor affecting their loyalty. Finally, a combination of the merchandise and service quality positively correlates with the store loyalty rather than with the store satisfaction.

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The Marketing Mix Effectiveness

In order to sustain a competitive advantage over other producers of grocery, particularly those who are involved in the fresh vegetables production, the attention should be given to the optimal marketing mix. At this point, Raman, Mantrala, Sridhar, and Tang (2012) focus on the problem of dynamics of the marketing optimization in order to define the criteria, according to which the marketing mix can contribute to the company’s competitiveness. It has been defined that the structure of the marketing effectives should relate to the product margins and media costs. The latter involves the communication and media promotion that are essential for attracting more clients and increasing their commitment to the brand. The branding campaign is essential because more and more consumers rely on this factor while buying products and services.

The marketing mix effectiveness should also be explored from the viewpoint of the green strategy and environmental sustainability. Specifically, Leonidou, Katsikeas, and Morgan (2011) consider this strategy pivotal for the industry of fresh market products. Currently, the consumers prefer fresh products that have been grown in the ecologically pure locations to those products, the origin of which is ambiguous. They also agree to pay higher price for a quality product. Additionally, the researchers have assumed that the role of the green marketing products has a positive influence on the company’s performance. The employment of such programs should encourage greater commitment on the part of the clients.

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Expanding the Variety of Products

In the studies by Banker, Mashruwala, and Tripathy (2014), the emphasis is put on the evaluation of the relationship between the sustainability of performance and strategic positioning of the company. The research also assumes that focusing on the differentiation strategy contributes to more sustainable performance in contrast to the cost leadership strategy. The results of the study have demonstrated that the differentiation strategy and efficient cost leadership positively influence the organizational performance. At the same time, the differentiation strategy allows a company to sustain its performance to a greater extent as compared to the cost leadership strategy. The differentiation, however, positively correlates with the higher systematic risk and unstable performance.

The pricing strategy and quality of products should definitely influence the customer experience; therefore, the concept of service quality should also be taken into consideration. At this point, Verhoef, Lemon, Parasuraman, Roggeveen, Tsiros, and Schlesinger (2009) pay specific attention to the technology-mediated environment. Specifically, the authors have concluded, “Customer experience management is a retailer’s strategy to engineer the customer’s experience in such a way as to create value both to the customer and the firm” (Verhoef et al. 2009, p. 38). Therefore, all dimensions should be analyzed in order to develop a powerful framework and adjust to a highly competitive environment.

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