STRATEGIC CAPABILITIES

Strategic Capabilities and Competitive Advantage

Strategic Capabilities and Competitive Advantage

Question 1

What do you understand by term strategic capabilities, what is their role in business strategy and how do organizations utilize them to create a sustainable, differential competitive advantage?

Strategic Capabilities

Strategic capabilities refer to a capability, an attitude, a state or attribute of the company, a mode that is consistent with the reality of open markets where they face daily threats and challenges. This ability is assessed through the level of productivity, product quality, minimum cost also by the presence of flexible structures that allow you to move in a changing environment.

Competitive advantage is a relative concept, the difference that a business or manufacturing sector has over other sectors or with respect to the requirements of context. This allows the company to be better placed at the point of start. This advantage may include the size and quality of resources, the installed power in distribution channels, the spatial location, and lower production times or provide vital information for business. Maintain and develop this difference or competitive advantage is the task of the business units. The efficient integration of these units in a set is achieved by designing a strategy. Markets operate as external forces that companies cannot control themselves, forces against which they can adapt or try to move forward to achieve better positions. It is a place where you are with others in a career that has known and shared rules, where the winners achieve an invaluable resource, for which they fought. This resource will allow the continuity and positive financial results.

Competitive advantage through Strategic Capabilities

For decades, most business publications have described the various aspects of business competitiveness. Reflecting the current and competitive realities, the executives of different positions in American industry bemoan the increasing conflict interactions with companies in Japan. However, Japan is only part of the overall picture, as South Korea and other countries within the Pacific Rim have also emerged as main rivals. Before the ink, of many corporate plans of battle have a chance to dry, the level of competition continues to expand. Now, companies must also worry about the impact that they have the European Common Market. In response to the changing nature of competition, the definition and scope of corporate strategy is being reviewed. A common denominator in many of the discussions on competitiveness and strategy is the issue of quality. How important is quality to the success of the organization in the long run? Some suggest that the quality needs to be a key element of all operational activities. But before we discuss the role of quality is necessary to examine how it has developed the business strategy.

In his excellent book, “The thought of the Strategist”, Ken Ohmae makes valuable comments on the evolution of business prospects. In particular, it defines the competitive potential of a company in terms of its "strategic capacity". The meaning of strategic capacity is what determines the basic framework for developing corporate ...