Mgt 498 - Competative Advantages Paper

Competitive Advantages Paper

MGT/498

November 19, 2012

Innovation Strategy

For Riordan to remain competitive it needs to assess various strategies that support innovation. Among the best strategies to tackle this goal are research and development strategies. As a market leader in plastics the organization has a variety of patents to protect its polymer processes. Unfortunately, most of the patents are dated circa 1991 and have run their course. Additional R & D in other areas may yield competitive advantages plus patents to provide additional barriers to entry.

Further, we currently provide plastic for many medical uses and though this market is largely dependent on the economy and insurance rates the new health care regulation may negate these two factors. It can be said with reason, that age demographics indicate a large percentage of the population may soon be requiring medical care. Hence, R & D and expansion into these markets may prove very profitable for Riordan.

Riordan also needs to assess its current strategy in terms of information technology (IT). Though some advanced processes such as customer relations management are currently being implemented, additional IT should be applied throughout the organization.

Sustainability Strategy

Considering the recent past economic picture, sustaining Riordan's competitive advantage may prove far easier under the current economic environment compared to one that is expanding. Though, turbulent economic times will pit one rival organization against another to compete for the last customer dollar. The almost negligible economic growth in the recent past compared to projected growth for the next few years it is unlikely that rival firms will be competing head on. To maintain our current status and prevent additional entry into this industry, Riordan must continue to implement alliance strategies such as currently underway with China.

Additionally, there are many multinational corporations in China that require Six Sigma level plastic part i.e. cell phone, lab top manufactures. An alliance with these global organizations at the host country level adds to the sustainability of our competitive advantage.

Global Market Strategy

In order for Riordan to achieve success in the Eastern countries and with global industries; changes need to happen before anything, changes are to be done because of their difference s in society, the industry, and Riordan employees. Before anything is considered, adapting to the differences that exist between the US and other country's markets need to be considered in order to achieve success.