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Types of Key Success Factors TECHNOLOGY-RELATED KSFs •Scientific research expertise (important in such fields as pharmaceuticals, medicine, space exploration, other "high-tech" industries) •Production process innovation capability •Production innovation capability •Expertise in a given technology MANUFACTURING-RELATED KSFs •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) •Low-cost plant locations •Access to adequate supplies of skilled labor •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 KSFs •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 KSFs •A well-trained, effective sales force •Available, dependable service and technical assistance •Accurate filling of buyer orders (few back orders or mistakes) •Breadth of product line and product selection •Merchandising skills •Attractive styling/packaging •Customer guarantees and warranties (important in mail-order retailing, big ticket purchases, new product introductions) SKILLS-RELATED KSFs •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 information systems (important in airline travel, car rental, credit card, and lodging industries) •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 KSFs •Favorable image/reputation with buyers •Overall low cost (not just in manufacturing) •Convenient locations (important in many retailing businesses) •Pleasant, courteous employees •Access to financial capital (important in newly emerging industries with high degrees of business risk and in capital-intensive industries) •Patent protection SOURCE: Thompson, A.A., Jr. & Strickland, A.J., III. (1996). Strategic Management: Concepts and Cases. (9th) ed.) Chicago: Irwiin. |