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Gaining a Competitive Edge Qualitative Research Essay


Business organisations operate in a highly competitive environment. Therefore, it is critical for business organisations to adopt strategies that improve their competitiveness. Companies strive to meet the needs of its stakeholders to remain competitive. Employee empowerment is one of the strategies that companies use to improve their competitiveness.

Employee empowerment increases employee motivation, which ultimately increases the productivity of the employees. Companies use various pricing strategies to ensure customers appreciate their products. Companies should not adopt strategies haphazardly. Successful strategies should take into consideration the unique needs and operating environment of the business organisation.

Gaining a Competitive Edge

Businesses exist for the sole purpose of satisfying the needs of their customers. Price and quality of a company’s products are the major factors that determine their competitiveness. Therefore, it is vital for businesses to harness the skills and abilities of its employees to ensure that they provide high quality services. In addition, companies should price their products favourably. There is a close relation between employee productivity and motivation.

Highly motivated employees are more likely to have high productivity. Therefore, companies give special emphasis to the motivation of their employees. Organisations may use several means to motivate their employees. Employee empowerment is one the most common strategies that companies employ to motivate their employees. In addition, companies use various pricing strategies to improve their competitiveness.

An efficient pricing strategy should not necessarily imply that organisations should offer low prices for their products. In some instances, offering low prices may reduce the competitiveness of an organisation. Several successful companies use employee productivity and efficient pricing strategy to gain a competitive edge over their rivals.

Business decisions form the foundation of various strategies that companies use to improve their efficiency. The decisions ultimately influence the competitiveness and profitability of the company. Therefore, it is critical for an organisation to have proper decision-making mechanisms.

Progressive business leaders use employee empowerment, which incorporates subordinates of the organisation in decision-making. Empowerment increases the autonomy and discretion of employees in decision-making, and use of company resources that facilitate implementation of the decisions.

Sharing decision-making responsibilities within all levels of an organisation increases employees’ sense of ownership. In addition, empowerment increases the responsibility that employees have towards the outcome of company activities (Gitman & McDaniel, 2008). Empowerment is a constituent of positive management, which is an optimistic psychological and leadership principle (Walters, 2010).

Google’s market dominance is partially due to the company’s employee empowerment strategy. The company removed managerial hierarchies, which increased the freedom of its employees.

Freedom increases the innovativeness of employees, which is critical competitive factor in the software development industry. Innovativeness increases Google’s competitiveness. Empowerment enables Google employees to take part in decision-making processes. In addition, removal of management hierarchies facilitated a faster decision making process.

Companies launch new products from time to time. It is critical for a company to have an efficient pricing strategy to ensure that customers appreciate the products. This would facilitate market dominance of the product. There are four stages in the product life cycle. These include introduction, growth, maturity, and decline. Introduction is one of the most important stages in the product life cycle.

Penetration pricing is one of the most common pricing strategies that companies employ in launching new products. Penetration pricing is a strategy where companies launch products with an initial entry price that is lower than the prevailing price of rival products. Low price of products provides the necessary incentive for customers to switch to the new products. Market penetration strategy reduces the short-term revenue and profitability of a company.

However, in the long term, the companies reap huge financial rewards as they seize a huge market share (Havaldar, 2005). The huge financial rewards during the maturity stage of the product life cycle warrant the low price of the product during the introduction phase of the product life cycle (Kotler et al, 2010).

Samsung uses penetration pricing to ensure gradual acceptance of the company’s products by customers. Efficient use of penetration pricing is one of the main factors that makes Samsung be the largest manufacturer of flat screen televisions. In addition, penetration marketing has facilitated the success of the Galaxy smartphone. On the other hand, Apple, Samsung’s main rival in manufacture of smartphones, does not use penetration pricing. Apple targets the acceptance of its products in key markets (Kapferer, 2012).

Companies use various strategies to gain a competitive edge over their rivals. Companies ensure that their employees are highly productive and consumers appreciate their products. Employee empowerment is one of the strategies that companies adopt to increase employee productivity.

On the other hand, companies use penetrative pricing to ensure customers appreciate the company’s products. However, use these strategies does not guarantee the eventual success of the company. Companies should consider their unique needs and operating environment before adopting the strategies.


Gitman, L.J. & McDaniel, C. (2008). The future of business: The essentials. Belmont, CA: Cengage Learning.

Havaldar, K.K. (2005). Industrial marketing: Text and cases. New Delhi: Tata McGraw-Hill Education.

Kapferer, J. (2012). The new strategic brand management: Advanced insights and strategic thinking. London: Kogan Page Publishers.

Kotler, P., Lee, N., Farris, P.W., Bendle, N.T., Pfeifer, P.E., Reibstein, D.J., … Reece, M. (2010). Upper Saddle River, NJ: FT Press Delivers.

Walters, J. H. (2010). Positive management: Increasing employee productivity. New York: Business Expert Press.

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