Competitive Advantage Through Logistics: An Electronics Case Study in 100 Words

In electronics, Porter’s “Five Forces” are powerful. Logistics represent a means by which economies can be achieved through efficiency improvements. Such improvements can translate into better service, which provides differentiation. Resultant cost savings can benefit the customer, who can pay lower prices.

Competitive advantage is attainable by internal activities (improvement of capabilities) and external (favourable change in market demand for services/products that play to core competencies). The internal option is the more manageable: closer alignment with customer expectation (via marketing), coupled with fluid, on-going internal configuration to provide near-as inimitable excellence at low cost is a rational objective for the logistics arm of an electronics manufacturer.