Tqm Competitive Advantage

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2.3 TQM linked with Competitive Advantage Competitive advantage is a mastered key element that gives an edge to a business beyond what already exists in competition (Ehmke, 2008). Porter (1980) believed that competitive advantage is created through operations at either a relatively low cost or differentiation. Either way, a firm requires excellence on an aspect in order to gain competitive advantage. Competitive advantage denotes a firm’s ability to achieve market superiority. In the long run, a sustainable competitive advantage provides above-average performance. S.C. Wheelwright (1989) suggested that quality is an important source of competitive advantage. TQM and business excellence are parallel terms; however the concept of excellence…show more content…
Addae-Korankye (2013), added that focus on quality increases customer value and leads to both cost leadership and adding value through quality. Ehmke (2008) identifies potential strategies to achieve differentiation; among which were Quality, Value Addition, and Efficient operating procedures, as shown in Figure 2. Quality is the most essential factor in delivering competitive advantage. It has to be delivered among products and services consistently, beyond the physical component. It is the most vital determinant of profitability because high quality goods and services provide a competitive edge (Evans & Lindsay, 2013). Quality is also positively and significantly related to a higher return on investment for almost all kinds of product and market situations (PIMS Associates, Inc., 1986). Firms that focus on quality, achieve better employee participation and relations, improved product and service quality, higher productivity, greater customer satisfaction, increases market share, and improved profitability (Evans & Lindsay,…show more content…
During the 1980s up to the mid-1990s, Qatar experienced an economic downturn due to its overdependence in the oil industry. From this hindsight, Qatar has recently been reducing its reliance on oil and gas by exploring and developing other industries as potential strengths of the country. Presently, Qatar is the largest financial center in the Gulf Cooperation Council (GCC) region (The Peninsula, 2014). Its capital city, Doha, serves as the business center. SMEs represent the backbone of the Qatari economy and accounts for 93.6 per cent of the manufacturing industrial firms in the country and provides 70.2 per cent of employment in the Qatari industrial sector (Gulf Organization for Industrial Consulting, 2013). It is also interesting that more than 95 per cent of the workforce in Qatar are expatriates (Shams, 2014); thus, developing a globally diverse environment. With an open and rapidly growing economy and a business friendly tax environment, Qatar is a huge attraction for both local and foreign investments that expand its industrial and economic development (Doing Business In Qatar,

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