Description
strategic management covers topics like Identifying company competencies and competitive capability, competency, Competitive Capability, Core Competency, Distinctive competency, Determining the Competitive Value of a company resource
Identifying company competencies and competitive capability
Competency: A company’s competency is the product of leaning and experience and represents proficiency in performance of an internal activity. Examples: Expertise in a specific technology, Skills in working with customers on new applications and product use Expertise in Just-in-time inventory management Expertise in creating an effective advertising campaign Company’s competencies are normally a bundle of skills, know-how and resources rather than a discrete skill or a resource Competitive Capability: A company’s capability become a meaning competitive capability when customers consider it valuable and beneficial. When it helps a company to differentiate from competition Core Competency: a valuable company resource is some thing a company does something better relative to other internal activities. A core competency can relate to several aspects of its business, e.g. - Speed and agility in responding to new market trends - Integrate multiple technologies to create family of new products - Manufacturing skills in high quality products - Expertise in building networks and systems that enable e- commerce - Customer service, creating and operating systems for filling customer orders accurately and swiftly A company may have more than one core competency but usually no more than 2 or 3 A core competency gives a company Competitive Capability and thus qualifies as a genuine its strength and resource A company’s core competency lies in its people, and in its intellectual capital and not in its assets and balance sheet Distinctive competency: A distinctive competency is something a company does better than competition. It is a competitively superior company resource. A core competency becomes a basis for competitive advantage only when it is a distinct competency. A distinctive competency become empowers a company to build competitive advantage
Determining the Competitive Value of a company resource Differences in company resources account for why some companies are more profitable and more competitively successful than others, the sustainable competitive advantage • • • Is the resource hard to copy? More difficult and more expensive it is to imitate, greater is the potential competitive value. The resource uniqueness, location and protection The life of the resource, the longer it lasts, greater its value. e.g the value of Kodak’s resource in film and film processing is rapidly being undercut by digital cameras Competitive superiority of resource e.g Coca cola’s marketing skills are presumably better than Pepsi cola’s Mercedes Benz’s brand name is more powerful than BMW Can a resource be trumped by different resources/ capabilities of rivals’
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doc_626658696.doc
strategic management covers topics like Identifying company competencies and competitive capability, competency, Competitive Capability, Core Competency, Distinctive competency, Determining the Competitive Value of a company resource
Identifying company competencies and competitive capability
Competency: A company’s competency is the product of leaning and experience and represents proficiency in performance of an internal activity. Examples: Expertise in a specific technology, Skills in working with customers on new applications and product use Expertise in Just-in-time inventory management Expertise in creating an effective advertising campaign Company’s competencies are normally a bundle of skills, know-how and resources rather than a discrete skill or a resource Competitive Capability: A company’s capability become a meaning competitive capability when customers consider it valuable and beneficial. When it helps a company to differentiate from competition Core Competency: a valuable company resource is some thing a company does something better relative to other internal activities. A core competency can relate to several aspects of its business, e.g. - Speed and agility in responding to new market trends - Integrate multiple technologies to create family of new products - Manufacturing skills in high quality products - Expertise in building networks and systems that enable e- commerce - Customer service, creating and operating systems for filling customer orders accurately and swiftly A company may have more than one core competency but usually no more than 2 or 3 A core competency gives a company Competitive Capability and thus qualifies as a genuine its strength and resource A company’s core competency lies in its people, and in its intellectual capital and not in its assets and balance sheet Distinctive competency: A distinctive competency is something a company does better than competition. It is a competitively superior company resource. A core competency becomes a basis for competitive advantage only when it is a distinct competency. A distinctive competency become empowers a company to build competitive advantage
Determining the Competitive Value of a company resource Differences in company resources account for why some companies are more profitable and more competitively successful than others, the sustainable competitive advantage • • • Is the resource hard to copy? More difficult and more expensive it is to imitate, greater is the potential competitive value. The resource uniqueness, location and protection The life of the resource, the longer it lasts, greater its value. e.g the value of Kodak’s resource in film and film processing is rapidly being undercut by digital cameras Competitive superiority of resource e.g Coca cola’s marketing skills are presumably better than Pepsi cola’s Mercedes Benz’s brand name is more powerful than BMW Can a resource be trumped by different resources/ capabilities of rivals’
•
doc_626658696.doc