How Business Strategy pursued by SME's can achieve/ensure competitive advantage

By

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

Signature: _______________________________

Date: __________________________

ABSTRACT

The study highlights the business strategies of the Small and Medium Enterprises that can ensure competitive advantage. The Small and Medium Enterprises have become an integral part of the economic system and are required to provide more effective services to their customers. The services provided by the Small and Medium Enterprises needs to be faster and more effective in terms of cost. The SMEs play a key role in maintaining employment, promoting innovation, ensuring competition and the creation of economic wealth. The importance of SMEs in the economy is mainly due to their ability to effectively perform these tasks. Strategies for SMEs to promote their growth should be based on either technology or business innovation, or the focus (niche) strategy with the differentiation of products or services. The business strategy adopted by the SMEs can be altered and changed accordingly for achieving competitive advantage. There are different business strategies that are usually adopted by the SMEs however; the differentiation strategy and the cost leadership strategies are the most important one that can be adopted by the SMEs to achieve competitive advantage in its operation. The generic strategy approach may not relate to the lifecycle concept. Porter assumes that generic strategies are successful in every stage. This may not be true as a business unit may switch strategies during various stages of its lifecycle. Based on Porter's five competitive forces model, the threat of new entrants comes from new competitors. This threat depends on the extent to which there are entrance barriers. The more difficult it is to enter an industry, the lower the threat of new entrants. The strategy implemented by the firm with a competitive advantage provides the opportunity for a reduction in costs (i.e. low cost) in the provision of a product and service with some closeness on product and service attributes to providers of the alternative differentiation strategy in a broad market segment. Alternately, the firm may have the ability to exploit market opportunities with a product and service with superior attributes (i.e. differentiation) with some proximity to low-cost providers on cost of production or provision of service in a broad market ...