Superior product and service quality brings sustained growth

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By: Wise Marketer Staff |

Posted on February 22, 2002

A survey of trendsetter companies examines the business elements that have got them there, and also those that influence their future growth.

For the latest PricewaterhouseCoopers Trendsetter Barometer survey, CEOs of trendsetter companies were asked how a respected outside adviser would rate their companies on each of fifteen factors which could have contributed to their sustained growth. The revenue gains of trendsetter companies have been consistently above average � averaging 1,203% over the past five years and 13.6% in 2001.

The seven top factors
·  The management team is fully and unanimously committed to growing the business (66%),
·  There is an intimate awareness of why the company's customers buy its products and services (60%),
·  The company has very strong cultural values (56%),
·  The quality of products and services is superior to that of competitors (55%),
·  The company has strong strategic relationships or partnerships with customers and suppliers (52%),
·  The company is able to attract and retain talented and dedicated employees better than competitors (50%), and
·  The company has a clear understanding of where its customer base and markets are heading.

Most expect to grow
Three quarters of the trendsetter companies expect to continue to grow over the next twelve months � in fact, they expect revenues to increase by an average of 20%. The other quarter expects no growth, or even a contraction. What is particularly interesting is that the survey separated those companies that expected growth and those that didn't, and compared their answers. When these two groups were compared, it was found that, on some of the seven points, both groups scored fairly evenly. On other points, however, there were significant differences.

Quality differentiates
The main point of difference was that many more of the CEOs who anticipated growth emphasised the superior quality of products or services (61% against 37%). This implies that superior product and service quality is by far the most differentiating factor instrumental to sustained growth.

Needs more attention
The areas that the CEOs identified as needing most attention for sustaining growth were: the process for developing an effective strategic plan (66%), the definition and efficiency of core business processes (65%), and the perception of the strategic plan as a very valuable tool (60%).

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