The importance of quality in creating competitive advantage

The importance of quality in creating competitive advantage

LEARNING OUTCOMES FOR THIS LESSON • Know that quality relates to how well a product does what it is intended to do. • Explain how the ability to provide quality consistently gives some companies competitive advantage. • Demonstrate the importance of offering customers high quality service.

INTRODUCTION • Most businesses compete with other firms in their market. • For instance, it could be on prices, products or service. • Portakabin competes on quality.

QUALITY • Quality relates to how well a product does what it is meant to do. There are two sources for quality: – Internal. The Group makes sure it provides not just good products but also all the extras a client might need. For instance, carpets and climate control systems. – External. Meeting building standards. The Group meets the international standard ISO 9001. • Quality also involves keeping pace with new technology and building solutions.

QUALITY SERVICE • Providing customer service is another vital part of Quality Management. • The company believes that providing exceptional levels of customer service is as important as the quality of the products it makes. • To support this commitment, it has developed a number of initiatives aimed at continuously improving service.

• Portakabin: – Guarantees to complete all projects on time and on budget. – Contacts customers after delivery to check they are happy. – Aims to solve problems within 24 hours. – Operates a Customer Charter laying down standards. – Offers a complete plan, design and build service. – Runs a monthly customer satisfaction survey.

CONCLUSION • In a competitive market, businesses stay ahead by offering products that are different and/or superior in ways that matter to customers. • Portakabin has positioned itself at the top end of the modular buildings market in terms of quality, whilst at the same time providing value-formoney products that fully meet key standards set out in IS 0 9001. • This outcome is the result of a great deal of thought, careful planning and ongoing education and training of a skilled and dedicated workforce.

ASSESSMENT OF LEARNING OUTCOMES • How well do you know that quality relates to how well a product does what it is intended to do? • How well can you explain how the ability to provide quality consistently gives some companies competitive advantage? • How well can you demonstrate the importance of offering customers high quality service?