Convert criteria to KFU

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A company that can be considered successful must meet a number of criteria. Determine in what direction to work to achieve this compliance. Then transform the discovered criteria into KFU.

Success factors and criteria are inextricably linked. If product reliability is a criterion, then the KFU will be product quality control. Production capacity and/or its effectiveness will be key success factors for such a criterion as punctual adherence to the established delivery schedule for the product to the customer. Each KFU is linked to differentiation.

Cost is a truly key factor , as every consumer wants to get a product or service at the lowest price. Therefore, it is important for suppliers to reduce their costs. Therefore, the criterion is the price of the product, and the CFU is to increase competitiveness in terms of costs.

How to Identify Key Factors for Competitive Success
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How can a company improve its south korea email list cost competitiveness? It is necessary to pay special attention to the following: production efficiency, cost of consumables, budget control, outsourcing and subcontracting opportunities, location of production facilities, presence of IT systems, and the size of remuneration.

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The size of the business is of great importance . Large manufacturers usually achieve the lowest cost price. A serious scale is an opportunity for significant savings, which can be achieved by reducing the material consumption per unit of goods, obtaining discounts from suppliers due to large orders, and reducing overhead costs. The latter is easily achieved by distributing marketing costs, namely, advertising in various media, participation in specialized exhibitions, over a wider budget revenue base.


Rate two more KFUs
The success factors described above are either differentiation related or cost related.

First of all, you need to determine how important good management is in your field of activity . Most likely, its role is great. A strong team consisting of sales managers, marketers, qualified managers and well-trained workers is a guarantee that even when producing the most ordinary goods, the company will get to the top of the rating. A company that produces excellent products, but has management difficulties, will have a hard time doing this.

The market share of the enterprise as a CFU is not directly related to the criteria. Meanwhile, the supplier's position is strengthened with the growth of its relative market share.

Market share of the enterprise
This point is manifested in various competitive advantages. These include, for example, lower production costs or costs of product sales due to the larger scale of the company compared to competitors (we have already discussed this circumstance above). It is necessary to approach this issue with special care, otherwise something can be counted twice.

The company's reputation also depends on its market share, since it is a kind of indicator of relations with consumers. Experienced businessmen will confirm that establishing relations with new customers is a much more difficult task than concluding a contract for subsequent sales with old clients. An enterprise that has sufficient weight in its industry receives a noticeable competitive advantage in terms of the possibility of signing new contracts.