It is, however more likely that an organisation achieves competitive advantage because it has distinctive, or core, competences. This may involve blending product design capabilities with the marketing capabilities needed to communicate these to the market, and balancing to ensure that limited resources and capabilities in one area do not hold back the effectiveness of resources and capabilities in another.
A distinctive competence is a competitively valuable activity that a company performs better than its rivals. Once this is done it creates competence; competence of employees, plant and machinery, consistent electricity supply, adequate water supply, qualitative raw materials, adequate internet connection, clean working environment, etc.
Threshold capabilities are those needed for an organisation to meet the necessary requirements to compete in a given market. Practitioners and academicians have centred their studies on firm specific characteristics that are unique, add value to the ultimate consumer and are transferable to many different industrial settings Coplin, Therefore organizations need to provide accesses to uninterrupted electricity and a private water system i.
Improving Organizational Learning Capability: This could be because the organisation has unique capabilities that competitors will find difficult to imitate.
Rarity could be temporary. Academy of Marketing Science Review, A company may have more than one core competence in its resource portfolio, but rare is the company that can legitimately claim more than two or three core competencies.
Retailers do not simply expect suppliers to have the required IT infrastructure, but to be able to use it effectively so as to guarantee the required level of service.
Despite the importance of attaining competitive advantage in organizations, there has been limited study on the relationship between organizational resources and the way firms are organized to achieve competitive advantage.
Furthermore, Nigerian organizations may have firm-specific and valuable resources, but unless it has the capability to use those resources effectively, it may not be able to create a distinctive competency.
From the interview conducted in PAN their competency can be clearly seen in their production of cars which is done with such expertise and efficiency.
This and more will give them a better competitive edge over their competitors. For example, a company's marketing capability can be based on the interaction among its marketing specialists, information technology, and financial resources a capability is functionally based and is resident in a particular function.
Culture and Organizational learning. Once, the strategic intent has been articulated, the firms should be able to identify the resources and capabilities required to close the gap between the strategic intent and the current position.
Social Capital in the creation of Human Capital. Intangible resources are non-physical assets such as information, reputation and knowledge.
Cited by DeNisi, A. Technological learning, technology strategy and competitive pressures. The problem with most Nigerian organizations is that they let sentiment, personal interests and biasness get in the way in selecting the right kind of worker that is qualified and suited to do the required job, and this of course affects the quality of work of an organization.
Thus, it is understood that across sectors most firms should recognize that attaining competitive advantages is the most challenging issue facing firms in the 21st century.
Building a learning Organization, Harvard Business Review, 71, 4: It can also be said to be Shaibu, ; pg a cross-functional integration and coordination of capabilities. One of such methods and strategies is resource-based approach through which an organization is capable of developing intellectual capital human capital, social capital and organizational capabilities that is rare and difficult to imitate.
We can also say that their production line is a core competency, because of its international standard of production. Teaching Notes Robert Grant 4th edition Strategy.
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Download. Teaching Notes. It expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment. The matching takes place through strategy and it is therefore vital that the company have the actual resources and capabilities to execute and support the strategy.
The Role of Resources and Capabilities in Strategy Formulation Harley-Davidson’s brand strength has not only permitted the company to obtain a look at the resources that underpin the capabilities at each stage of the value chain.
l Appreciate the role of a firm’s resources and capabilities as a basis for formulating strategy.
l Identify and appraise the resources and capabilities of a firm. l Evaluate the potential for a firm’s resources and capabilities to confer sustainable competitive advantage. Organizational capabilities, appropriately defined, can meet the conditions, articulated by the resource-based view of the firm, for being a source of sustainable competitive advantage.
Because resources and capabilities play a dominant role in achieving a sustainable competitive advantage, managers would be expected to design strategy to leverage firm‟s resources .Which distinctive resources capabilities underpin harley davidson s strategy