TYPES OF KEY SUCCESS FACTORS

TECHNOLOGY-RELATED KFS’s

⇒ Scientific research expertise (important in such fields as pharmaceuticals, medicine,

space exploration, and other “high-tech” industries

⇒ Production process innovation capability ⇒ Production innovation capability ⇒ Expertise in a given technology

MANUFACTURING-RELATED KFS’s

⇒ Low-cost production efficiency (achieve scale economies, capture experience curve

effects)

⇒ Quality of manufacture (fewer defects, less need for repairs)

⇒ High utilization of fixed assets (important in capital intensive/high fixed-cost industries) ⇒ Access to adequate supplies of skilled labor

⇒ Low cost plant locations

⇒ High labor productivity (important for items with high labor content)

⇒ Low-cost product design and engineering (reduces manufacturing costs)

⇒ Flexibility to manufacture a range of models and sizes/take care of custom orders

DISTRIBUTION-RELATED KFS’s

⇒ A strong network of wholesale distributors/dealers

⇒ Gaining ample space on retailer shelves

 ⇒ Having company-owned retail outlets

⇒ Low distribution costs

⇒ Fast delivery

MARKETING-RELATED KFS’s

⇒ A strong network of wholesale distributors/dealers

⇒ Available, dependable service and technical assistance

 ⇒ Accurate filling of buyer orders (few back orders or mistakes

⇒ Breadth of product line and production selection

⇒ Merchandising skills ⇒ Attractive styling/packaging

⇒ Customer guarantees and warranties (important in mail-order retailing, big ticket

purchases, new product introductions)

SKILLS-RELATED KFS’s

⇒ Superior talent (important in professional services)

⇒ Quality control know-how

⇒ Design expertise (important in fashion and apparel industries)

⇒ Expertise in a particular technology

⇒ Ability to come up with clever, catchy ads

⇒ Ability to get newly developed products out of the R&D phase and into the market very

quickly

ORGANIZATIONAL CAPABILITY

⇒ Superior talent (important in professional services)

⇒ Ability to respond quickly to shifting market conditions (streamlined decision-making,

short lead times to bring new products to market)

⇒ More experience and managerial know-how

OTHER TYPES OF KFS’s

⇒ Favorable image/reputation with buyers

⇒ Overall low cost (not just in manufacturing)

⇒ Convenient locations (important in many retailing business)

⇒ Pleasant, courteous employees

⇒ Access to financial capital (important in newly emerging industries with high degree of

business risk and in capital-intensive industries)

⇒ Patent protection