Operations strategy matrix

The challenge then is how to deal with each of the possible scenarios.

Operations Strategy Matrix

This changed with the introduction of Frederick W. For example, a rental car company that eliminates long lines at the airport improves an existing system for both new and repeat clients. Businesses depend on this characteristic for items such as delivery trucks and vans, farm equipment and copy machines since their failure could conceivably shut down the business altogether.

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Because the firm is expanding into a new market, a market development strategy typically has more risk than a market penetration strategy. Operations will provide a marketing edge through distinct, unique technology developments in processes that competitors cannot match.

Sunil Chopra, William Lovejoy, and Candace Yano describe the scope of operations management as encompassing these multi-disciplinary areas: The introduction of Taylor's method of scientific management and Henry Ford's moving assembly line brought the world into an age where management was predominantly centered around the production of goods.


With technological advances, it has become increasingly easier to offer real-time customer service as well as providing high-tech solutions for rapid product tracking, delivery and access.

The technology would be the same but the marketing effort would need to change. Product Development - the firms develops new products targeted to its existing market segments. Alternatively, factors can be taken in pairs to generate several two-dimensional matrices.

The development of new markets for the product may be a good strategy if the firm's core competencies are related more to the specific product than to its experience with a specific market segment. Today, services are such a pervasive part of our life that the term operations management is used almost exclusively.

Scenario planning is not about predicting the future. An order winner is a competitive characteristic of a product or service that causes a customer to choose this firm's product or service rather than that of a competitor distinctive competence.

Service can be defined in a number of ways.

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Stage 4 firms are at the most progressive stage of operations development. At the strategic level long termoperations managers are responsible for or associated with making decisions about product development what shall we make. This builds loyalty and referral business.

Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs.

As a result, many businesses have come to realize that the operations function is just as important to their firm as finance and marketing. As a result of these efforts, Shell was prepared to deal with the oil shock that occurred in late and greatly improved its competitive position in the industry during the oil crisis and the oil glut that followed.

Once this is determined, the firm has to decide what resources and competitive capabilities it needs in order to compete successfully, and what will it take to achieve a sustainable competitive advantage.

Consider a few possible values for each variable, ranging between extremes while avoiding highly improbable values. Do we need to work overtime or subcontract some work. An insurance company might define market penetration success by the number of new automobile policies gained. An alternative form of that Avon has also undertaken is selling its products by mail order e.

In fact, most outstanding firms are in Stage 3, as Stage 4 is extremely difficult to reach. Finally, operations management concepts are being applied to other functional areas such as marketing and human resources. Being the best is a good strategy, but it also means that competitors will immediately work to exceed your product specifications.

A product development strategy may be appropriate if the firm's strengths are related to its specific customers rather than to the specific product itself.

The matrix is a vast improvement over allowing priorities to be set by the biases of certain stakeholders who insist that some projects are more critical than others without any evidence to support their claims.

Upper Saddle River, NJ: A criteria-based matrix can be an effective tool in prioritizing the IT projects with just such results. These assumptions place unrealistic demands upon the operations function. Multiplying the two together would yield 10 out of a possiblerevealing that the variable is not highly critical.

IBM Systems Visit us: These KSFs can be related to technology, operations, distribution, marketing, or to certain skills or organizational capability.

Operations Strategy Matrix Ppt Slide

In a growing market, simply maintaining market share will result in growth, and there may exist opportunities to increase market share if competitors reach capacity limits. Jun 27,  · Operations strategies look at where operations are located, where costs can be saved and how improving products keeps customers.

How Do I Analyze Using the Operations Strategy Matrix?

The more efficient a. Jun 27,  · Operations strategies look at where operations are located, where costs can be saved and how improving products keeps customers. The more efficient a company is in making and delivering goods, the.


Nov 17,  · Forum Description Topics Posts Last Post [General] Press Releases, News and Events from Matrix Gamers can find out here about the latest happenings from Matrix and its partners. A simple model called the operations strategy matrix is used to think about content issues.

Operations strategy process is the procedures that a company can adopt to formulate the strategy. In other words, the way it goes about making content decisions. A gap-based analysis Level of market requirements Level of operations resource capability In operations strategy ‘fit’ is the alignment between market and operations capability Line of fit Alignment between market and operations capability Y X ‘Fit’ means that the operations resources and processes are aligned with the requirements of.

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Operations strategy matrix
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Strategic Management