STRATEGIC CAPABILITY AND POSITION ANALYSIS

Strategic capability and position analysis

Abstract

In this study we try to explore the concept of “strategic capability and strategic position analysis” in a holistic context. The main focus of the research is on the application of “strategic capability and strategic position analysis” tolls in order to measure the effectiveness of “PepsiCo Pvt. Ltd”. The research also analyzes many aspects of “strategic capability and strategic position analysis” and tries to provide justification for the effectiveness of these tools in measuring performance of an organization. Finally the research describes the overall effectiveness of the “strategic capability and strategic position analysis” tools in measuring the stability and efficiency of “PepsiCo Pvt. Ltd”.

Table of contents

SectionPage

Introduction............................................04

1.1 Strategic capability analysis.......................04

1.2 Strategic position analysis.........................05

2.0 Literature review........................................07

2.1 Strategic capability analysis (PepsiCo).............07

2.2 Strategic position analysis (PepsiCo)...............09

3.0 Conclusion...............................................12

Strategic capability and position analysis

1.0 Introduction

1.1 Strategic capability analysis

Today is the era of competition and technological obsolescence; hence the complacent companies are destroyed like they never existed. The practices which were considered best for business no longer exist. Every organization is striving to retain their existing customers and planning to attract the new (Camp, 1989, 12-15). This can be made possible by offering them better value than the competitor. An organization can only provide better value if the organization is financially stable and skilled to utilize its resources optimally. Strategic capability is an organization's tendency to optimally utilize the available resources in order to maximize the competences necessary for survival and prosperity of the organization (Lowson, 2002, 76-88). These resources can be technological resources, financial resources, human resources or knowledge and expertise (Camp, 1989, 12-15). Strategic capability model is the most effective way to evaluate an organization because when a company utilizes its available resources fully, it becomes competent enough to provide the unmatchable values to its existing and potential customer (Lowson, 2002, 76-88). Through this practice an organization overcomes its competitors is achieving a competitive advantage over them. An organization can have different competitive advantages depending upon the nature of the business or the target market segment, among the variety of competitive advantages offered the most effective competitive advantage is low-cost leadership. In this scenario organization offers its products/services at much lower price as compared to its rivals. But due to the non-static conditions it is less likely to have stable strategic capabilities as they are subject to change.

1.2 Strategic position analysis

Another tool to measure the effectiveness of an organization is organization position analysis. Through this tool it can be analyzed that how well an organization positions itself. Because the positioning or the image shown by organization creates the perceived value in the mind of the consumer prior to the purchase or consumption of the product and sometimes this perceived image is becomes so strong that an organization becomes able to attract the customers and vice versa (Harvey, 1992, 12-20). An organization can position itself in the mind of consumer through various constraints such as price, after sales service, excellent quality, reliability, etc, these are the factors through which perceived ...