Introduction In the competitive world of manufacturing, supply and demand, one company is standing out and making its presence known, Riordan Manufacturing Incorporated. This company is at a key point on whether to continue to expand further in the global market or continue current operations in the status quo and risk being out competed by rival companies. The following is an explanation will show that the company is in need to expand to further markets but why it has the management strategy and tools to expand.
Common Competitive Advantages
Riordan Manufacturing Company is the most popular plastics manufacturer not only in the United States but in the global market. The company strives to be the best company in the world. The
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Competitive Strategies & Sustainability In the plastics and polymer industry, a lot of companies compete for the business of the big corporations that use their products. Riordan Manufacturing Inc. is one of those companies, operating in a way that utilizes competitive strategies to sustain long-term profitability. With approximately 30 customers and 23 years of being in business, Riordan has positioned themselves for continual growth (University of Phoenix, 2014). They have done this by using a combination of competitive strategies, lower cost and differentiation. To have a competitive advantage, Riordan utilizes a mix between lower-cost and differentiation strategies, by using a blend of cost focus and differentiation focus (Wheelen & Hunger, 2010). Riordan likes to narrow its target for customers while keeping costs low, but also offering services different than what its competitors offer. Such business strategies help Riordan to create value and sustain its competitive advantage. Riordan builds relationships that last longer than one project, a strategy that shows customers that Riordan values its business with them. By retaining customers for the long-term, Riordan can invest money into reducing production costs and developing new products. Both actions will allow the organization to remain profitably and attract more customers. As Riordan grows, shifts into global markets will open doors for their business to prosper.