Aspects of Differentiation Strategy at Minit-lube

Minit-lube is a business that has grown to develop a very peculiar business model that ensures it attracts new customers and retain existing ones. The mission is to ensure that they provide quality, consistent, cost-effective and fast automobile services such as oil change, interior cleaning and lubrication to individual clients, ensuring customer satisfaction and at the same time having a competitive advantage in the market over its competitors (Render & Heizer, 2004, p. 2).

The company has developed various operation strategies that have ensured that it is gaining more advantage than its competitors. These include;

The business emphasizes in more focused strategies in providing services such as lubrication of automobiles as opposed to its competitors (Render & Heizer, 2008, p. 53). These services include the changing of oil, cleaning the interior of vehicles and lubrication of vehicle body parts. They differ from their competitors in providing fast services achieved by designed mechanisms that allow service for three cars simultaneously.

The process is time conscious and operational to suit the customer needs. The work is handled by a set of three employees at each work-station. This has ensured consistency in the growth of more detailed and effective operations (Lussier, 2008, p. 76).

The business provides quality services. All the employees are well groomed and have undergone training in the Minit lube school. The limited diversity of tasks allows for replication of work, use of accessible manuals and proper training of the human resources which in turn increases customer satisfaction and maintenance of quality services (Dranove & Marciano, 2005, p. 113).

The processes in the company ensure that the employees are well motivated and focused on the execution of their duties. As compared to its traditional competitors, the company does not provide a wide range of services (Kates, 2012, p. 212). This helps to ensure attention to detail is observed. Secondly, the effective deployment of the employees ensures services are carried out fast. This also allows MinIt lube to have an extra edge in efficiency as compared to its competitors.

Minit Lube operates in their personal property, and as a result, their building is kept clean. For instance, the walls are painted white, and the surrounding environment is well sheared (Bharadwaj, 2018, p. 2). It is also evident that the working location is strategically positioned near places of residence. The traditional competitors do not pay much attention to the working environment. This is advantageous to Minot lube because such a perfect environment will attract customers.

The work bays are uniquely designed in that all jobs are carried out fast. They are structured in a way that all the tasks are done with minimal movement (Bharadwaj, 2018, p. 5). This is to mean that all services related to lubrication are done in one place. This helps to make work easier.

The human resources department has a strategy where the employees hired are few and with limited skills. The employees are then taken through training under supervision to ensure effective performance of duties (Dranove & Marciano, 2005, p. 151). Proper job specification also increases efficiency. This is achieved because the employees can offer quality service since they have the proper skills required.

Total Quality Management and Modern Operations Management

The company is able to acquire economies of scale by purchasing their goods in large quantities and also seek to develop good relationships with their supplies (Lussier, 2008, p. 86). This ensures that the get quality and affordable goods even in short notices. This also allows their supplies to refer them to other clients.

The company keeps a low investment of inventory resulting in a high turnover. This ensures that the company does not acquire any holding costs that may affect the quality of their stocks.

The strategy ensures that all tasks are carried in the shortest time possible. It also allows the employees to meet the schedules given by the clients.

Since the company works with a narrow product-based strategy, there is relatively limited maintenance needed (Lussier, 2008, p. 114). Three work-stations also ensure that there is continuous provision of services even if one station fails.

In conclusion, the company differs from its competitors in ensuring that quality, fast and convenient services are offered to its clients.

Productivity in Minit lube is measured through differentiation, elasticity and the costs incurred in the provision of the services. The company is different from the traditional service providers in that it offers limited auto mobile services. The approach is elastic in that they react to customers’ needs effectively and efficiently. The costs are also convenient and affordable for the customers. This can be seen in the mission of the company. Research states that the productivity and growth of the company have expanded tremendously in the last two decades, unlike its competitors.

The Boeing Company embraces a global strategy because it majors on growth and expansion in globalized markets. It is also evident that the company is in many countries and has also made alliances with 20 different international system suppliers. This has ensured that it is made up of components from countries all around the world.

The company is one of the prominent aerospace companies and also is deemed to be the largest manufacturer of satellites and army airplanes (Wensveen, 2018, p. 1). The company is different from other companies in the same industry in that it has increased technologies that have increased efficiency leading to high productivity and low maintenance. It is also evident that the Boeing 787 engine is more developed and has a higher compression ration leading to increased efficiency. The engine also has a limited fuel usage leading to lower costs of operation. The plane uses approximately 25% less of fuel than other aircraft of the same size.

The aircraft has been developed using components from all around the world. This has resulted to the development of more durable spare parts. This ensures that the craft can travel for longer distances as compared to other aircraft (Market line Case Study, 2012, p. 7). The longer journeys are beneficial in that it will attract more customers as compared to other flights. Being the only plane that provides long flights, monotony will be created increasing the demand which in turn increases revenue.

Minit-lube’s Unique Operation Strategies

 The durability leads to limited maintenance which is cost effective as it reduces all the costs of operation. Also, the limited maintenance costs lead to increased revenue. Specialized machinery used to build the plane ensures that it is bigger and lighter at the same time (Market line Case Study, 2012, p. 9). Due to the advanced systems, the efficiency of the plane is increased, and weight based costs are reduced greatly.

Cost strategy is one that seeks to reduce operating costs to possible minimums and at the same time provide lower prices to the clients leading to increased yields. For a company to invest in the cost strategy, it needs to have high bargaining power to negotiate for the minimum costs (Polk, 2018, p. 1). Such a company should have high rates of productivity and effective systems of operation.

Differentiation strategy on the other hand majors on providing incentives that add value and have higher prices, unlike the cost strategy. Such products are unique and desirable to the customers making them willing to pay an extra amount for the products (Market line Case Study, 2012, p. 14). It requires a company to continuously invest and develop itself but having superior products that have strong brands. It is also evident that the differentiation strategy leads to the production of more quality and sophisticated goods, unlike the cost strategy.

It is vital to note that both the cost and the differentiation strategy have a positive effect on performance. Nevertheless, the differentiation strategy ensures that a company is able to sustain its present performance in the long term for an extended period, unlike the cost strategy. On the contrary, the differentiation strategy is mostly associated with increased logical risks (Marketline Case Study, 2012, p. 16). Firms that embrace the differentiation strategy are more susceptible to threats about competition as compared to those that use the cost strategy. If this is not well handled there is increased risk of poor performance.

Total quality management can be explained as a form of management that provides customer satisfaction and lasting success (Mukherjee, 2006, p. 265). In this form of management, all the people in an organization work simultaneously to improve the goods and services offered, the processes involved and the organizational culture. Improved business tactics are critical in ensuring that a modern company will have a competitive advantage over its competitors. It seeks to incorporate all departments in an organization. Such departments include; finance, marketing, design, production, customer service among others.

Over time, TQM has grown to be one of the key organizational stratagems for a company to thrive in the market. This process is involvement with systematic growth in all aspects. This ranges from planning to decision making processes and proper deployment of duties (Mahadevan, 2010, p. 210). Today, the major focus of organizations is to produce inventive brands of goods and services as this is a major factor in ensuring organizational success. The use of TQM in modern organization involves proper management of resources, employees, time and other business processes to attain customer satisfaction. It is also evident that TQM continuously increases the value of the customers through improving the systems of operation in an organization (Morfaw, 2009, p. 138).

Global Strategy Adoption by Boeing

It allows all the employees in an organization to work together to achieve the organizational goals and at the same time solve customer related challenges. This has helped the modern organization to develop competitive advantage and also be sustained in an international business environment (Morfaw, 2009, p. 145). TQM reduces costs incurred in the production process. It ensures maximum use of the resources available thus increasing the rate of productivity.

As discussed, TQM majors in customer satisfaction by providing better goods and services. Fewer complains increases customer loyalty and increased market share. As a result, new customers will be attracted and existing customers will be maintained (Kiran, 2017, p. 357). It is also vital to note that TQM will greatly reduce the number of defect products in an organization. This is because the process is concerned with the improvement of quality thus reducing production costs as well. The involvement of employees in the process increases moral which in turn increases efficiency, reduces the rate of labor turn over, hiring and training costs (Kiran, 2017, p. 448).

Organizational performance is closely intertwined with total quality management in a company. In the recent past, it is impossible for a company to thrive without TQM. It is involved in all departments in an organization. With the increasing awareness that the quality of products and services is a tactical competitive variable, organizations have embraced this new concept that has been incorporated in the processes of production to manufacture superior goods and services while at the same time reducing costs involved (Mukherjee, 2006, p. 302).

It is evident that implementation of total quality management leads to long-term returns, increased productivity and increased organizational performance. Research states that total quality management is directly connected to innovation because it creates an environment fertile for growth (Mahadevan, 2010, p. 239). For success to be experienced after the implementation of total quality management, the collaboration and involvement of every person from all levels of management is inevitable. This involves the shareholders, management, clients and employees. Lack of such participation leads to failure to achieve business objectives.

In conclusion, planning is also a very crucial part of the success of TQM. Research and training ensure proper precautions are taken to provide success. Continuous update and modifications need to be reviewed periodically. This will help to ensure that customer satisfaction is achieved and maintained.

References

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