Why Dissatisfaction in Customers?
When the suppliers are unable to entertain customers or their business strategies fail to build a good relationship with customers, they probably end up with customers’ dissatisfaction. Their can be many reasons for the customers to become dissatisfied. Some of these reasons are: Taking example of India, most of the population here are vegetarian. They […]
Media as an Instrument of Control vs. Media as an Agent of Change
Media as an Instrument of Control In many countries, the media is used by the government as an instrument of control and for propaganda purposes. For instance, the Chinese media is heavily controlled and censorship is direct and deep. In countries like the United States, though there is no explicit control, the media is expected […]
It’s Not Just the Data that is collected that Counts, but, the Quality of the Data as well
In God We Trust, Rest Have to Bring Data: The Importance of Data Collection All entities collect data for various reasons. Whether it is the government collecting data on economic growth, employment rate, budgetary purposes, or for welfare schemes, or it is the private firms collecting data on revenues and productivity, there is a need […]
Overfished Ocean Strategy: How to Drive Growth and Attain Profitability
To say that we are facing a resource crunch seems obvious to anyone who is remotely tuned into the present day global economy. However, instead of beating one’s hearts and lamenting the looming resource crunch does not solve any of our problems. Instead, the solution lies in innovating, moving beyond vertical integration and into non-linear […]
Competitor Analysis – Meaning, Objectives and Significance
Organizations must operate within a competitive industry environment. They do not exist in vacuum. Analyzing organization’s competitors helps an organization to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment. While formulating an organization’s strategy, managers must consider the strategies of organization’s competitors. Competitor analysis is a driver […]
The primary problem in the field of strategic management is to answer the question on how firms attain and maintain the competitive advantage. The phenomenon of globalization has resulted in competitive battles fought on a trans-national basis especially in high-technology industries such as information systems services, and software. These globalized forms of competition have established the necessity for an elaborated concept to comprehend how competitive advantage is accomplished.
Multi national organizations like Microsoft, Oracle and IBM are pursuing a resource based strategy of building up useful technology assets, habitually shielded by an assertive attitude by means of intellectual property. Nevertheless, on a regular basis this strategy is not adequate to maintain an important competitive advantage. Successful firms in the global market are quite often those which can exhibit appropriate awareness and positive reaction to the changing business environment.
Fastness and adaptability in innovating products, combined with potential of the management to effectively bring together and reorganize competences both internal and external are features seen in successful firms. Therefore not to the shock of the industry it has been observed that firms which have gathered a huge bulk of priceless technology assets are still lacking the functional capabilities to exploit them.
It is possible that a firm’s competitive advantage is diminished over a period of time. There can be various factors that result in such an erosion of competitive advantage. The two main causes are as below:
Here lies the significance of dynamic capabilities. Strategists consider dynamic capabilities to be the key to competitive advantage.
The ability to achieve new forms of competitive advantage is referred to as dynamic capabilities. The two terms dynamic and capabilities by itself require in depth understanding while studying competitive advantage.
The ability to renovate competences so as to accomplish corresponding with the transforming business environment is referred to as dynamic.
The main characteristics of being dynamic are:
The important function of strategic management in fittingly modifying, incorporating and reconstituting the internal as well as the external organizational skills, resources, and functional competences to correspond with the necessity of a transforming environment relates to the term capabilities.
Thus dynamic capabilities address rapidly changing environment. They suggest an organization's capacity to accomplish new and innovative forms of competitive advantage.
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