Obtaining a competitive advantage is an important aspect of management today because organizations exist in a more global environment than ever before. Within most industries, organizations compete with other companies that are able to provide the same goods and services for less money because they utilize resources in other countries, such as human resources in third world or other low labor cost countries, where workers are typically paid a third of what American laborers receive. There are building blocks and certain roles managers have to play in order to obtain these advantages.
Building competitive advantages takes four building blocks and an organization of efficient and effective players. The four blocks are “superior efficiency; quality; speed, flexibility, and innovation; and responsiveness to customers” (Jones, 2011). Organizations can increase their efficiency when they reduce the amount of people and items it takes to create a product; and when they use their resources in new ways. There is always the option of the manager making sure each employee is cross-trained in more than one skill in order to make sure there will always be a constant flow of performance. This allows more