Abstract

Article history: Received October 17, 2011 Accepted 12 March 2012 Available online 16 March 2012 Competitive advantage is an important factor in boosting companies' success and is considered more emphatically in management and strategic marketing literature in recent years. There are many different ideas about effective factors in creation of competitive advantages. Also fast rate of change in business, is forcing CEOs to utilize some strategies, which have the best impact on current organizational circumstances and the future trend of investigation in organizational trades. Outsourcing is one of the best strategies, which are widely utilized by CEOs in different organizations. Many managers believe that outsourcing is the solitary way for preserving the balance of organization in 21 century. Based on Porter competitive advantage model, there are three strategies, which lead a company to reach competitive advantage. These strategies are cost leadership, differentiation strategy and segmentation strategy . In this article, we are investigating outsourcing effects on creation of competitive advantages through Porter model in an automotive factory in Iran. We design a questionnaire for gathering necessary information about the role of outsourcing in creation of different strategies as competitive advantages in managers' point of view. We analyze the questionnaires and implement a goodness of fit test to recognize the distribution of data and the statistical method. Preliminary results show that nonparametric statistic methods can be utilized for testing our hypothesis. We use a Wilcoxon test to consider the null hypothesis and a Friedman test to estimate the rank of means. Our findings verify an undeniable effect of outsourcing on creation of competitive advantage and the ranking list is presented. © 2012 Growing Science Ltd. All rights reserved.

Highlights

  • Competitive advantage is an important factor in boosting companies' success and is considered more emphatically in management and strategic marketing literature in recent years

  • Organizations must represent a production in the competitive space of global economy and modern evolutionary world to satisfy their customers' needs but to maintain competitive prices

  • We have presented an empirical study to find out the effects of outsourcing on auto industry

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Summary

Introduction

Organizations must represent a production in the competitive space of global economy and modern evolutionary world to satisfy their customers' needs but to maintain competitive prices To create such competitive advantages, organizations are required to work hard on their product development and their capabilities. Auto industry is one of the most important multi billion dollars sectors of worlds' economy This industry is ruled by many developed countries like Germany, United stated of America, Japan, South Korea and China. They have made a very competitive market through modern technology, specialized working force and outsourcing, which has made it difficult to compete with them.

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