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Competitive Advantage
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02/08/2016
Common Competitive Advantages
Riordan Virtual Organization and Environmental Scan and Apple share a common competitive advantage of an overseas low cost manufacturing plant. Both the companies have manufacturing plants in china with Riordan Virtual Organization and Environmental Scan’s factory located in Hangzhou, China. This manufacturing operation takes advantage on the cheaper labour, favourable tax regimes on manufacturers, large pool of qualified manufacturing engineers,
to set up businesses overseas and attract skilled professionals from other parts of the world to low cost manufacturing destinations.Another effect comes from the supply side of factors of production. Many businesses including Riordan have joined the global tendency of ‘buy rather than make’. This means businesses are buying components, intermediaries and raw materials from a fragmented value addition process, which takes place all over the globe. Thus, businesses are interdependent and reliant on multiple firms in diverse countries in a complex and interdependent supply chain. Riordan assembles its products from multiple parts and components in China. This has influenced Riordan's strategy of having multiple and distributed manufacturing operations CITATION Zak08 l 7177 (Zakić, Jovanović, & Stamatović, 2008).
References
BIBLIOGRAPHY l 7177 Zakić, N., Jovanović, A., & Stamatović, M. (2008). External and internal factors аffеcting the product and business process innovation. Facta Universitatis Series: Economics and Organization, 5(1), 17-29.
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