How To Apply The Four-stage Model To Judge The Operation Contribution Of A Car Audio Supplier

To judge the operation's contribution of a car audio supplier

, the first thing is to understand the aims and aspirations of the operations function in an organization, following by the strategic role of the operations function. By judging the operation's contribution, car radio manufacturers can trace whether they are in the right way to achieve business success.

The four-stage model includes internal neutrality, external neutrality, internally supportive and externally supportive. This model is widely used to judge and evaluate the operation's contribution in an organization. By applying this model, a car audio supplier can trace the status of the operations function from the initial level to the ultimate level.

1. Internal Neutrality.

This is the beginning level of contribution achieved by the operations function of a car stereo supplier. Unlike the other levels of contribution, this poor level aims at avoiding the big mistakes done within the company of the car radio. At this level, the business focus is to make sure no big problem occurred in the company. For example, equipment or machine failure happened on the production lines of auto radio products; supply gap in stores due to unexpected customer demand; the quality issue of the car audio products. Such problems will heavily damage the image of a car radio supplier, and finally put a company in a difficult position. Let alone to build competitive edges. The ambition of this level is to supervise the internal environment of an organization to achieve internal neutrality.

2. External neutrality.

With the foundation built in the first stage, a car stereo supplier is capable to start competing with similar companies in the market. Yet at the second stage, the concentration is not on building the most excellent competitive advantages over other companies, but on the comparison with other car audio suppliers. This will help the company adjust itself to fit for the market and apply the best practice learned from competitors. By filtering the best practice of performance from the rest of the car audio industry, a car radio supplier is well prepared for the market competition. For example, an auto radio manufacturer may need to build a strong customer service team to provide customers with technical support, as most of the competitors are doing the same.

3. Internally supportive.

After being appropriate in the industry, the next stage of operations function is to make a car audio supplier distinguished in the market. The focus at this stage is to improve the organizational operations and thus achieving the first class companies in the market. At this stage, operations function of a car stereo manufacturer is supposed to be able to assist the company to perform better than competitors in some perspectives. The operations function at this stage is required to aim at achieving one of the best in the industry. By this judgment, a clear view is supposed to be brought by the operations, which is that the car radio supplier develops excellent operations resources, and finally excels in the market. For example, the quality of original car radio products is better than other competitors in the market; the customer service team performs better than the rest in the industry, etc.

4. Externally supportive.

The final stage of the contribution of the operations function is supposed to be able to let the car audio supplier exceed the current expectations in the industry, and thus enhance the company's leading position in the market. In this stage, the operations of an original car stereo company will be refined, and a foundation for competitive success is built. The organizational operations do not only focus on the current market position, but develops long-term operations-based capabilities to win business success in future market conditions. By forecasting the possible changes and challenges in the market, the operations function is capable to assist the car stereo supplier to be innovative and flexible to face any future market change. Basically it dragged the car radio company to run one step ahead of competitors. For example, in the fourth stage, an auto radio supplier brings an innovation in the product design, which makes it launch new functions of car audio products before any other competitor in the industry.

In all, by leveling from stage 1 to stage 2, the operations function of an original car audio supplier is required to solve the problems when implementing the organizational strategies. Upgrading from stage 2 to stage 3 will require operations to develop organizational capabilities and resources to fit for the current market and are suitable for long-term development. Moving from stage 3 to the final stage requires the operations function to refine the competitive advantages of a car stereo supplier, and drive organizational strategy to achieve long-term superior competitive edges.

by: Gile Lai

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