Discuss about the Competitive Success for Economics and Management Strategy.
Competitive advantage can be described as a set of assets, abilities or company assets in order to ensure that the company becomes more successful than its competitors over the long period of time. With the extensive competition prevailing in the business environment, the competitive advantages are required for a business to gain success amongst the different competitors. In order to invest in an organization, the investors often look out for valuable performance (Hill, Jones and Schilling 2014). Hence, in order to be successful in the long run, it is very crucial for the business to have access to at least one competitive advantage which will then assist the firm to become successful. Hence, the following section, five resources and competitive capabilities which a company needs to possess to become successful competitively. The latter half of the essay will be discussing the means to achieve sustainable competitive advantage for a firm.
The people aspect of the business can be described as the primary competitive advantage of any business. In case the people involved in the company are innovative creative and hardworking then they tend to work well towards organizational goal which shall then contribute towards creation of a competitive advantage. Although the different competitors who were present in the firm may be able to copy any product idea or a service idea being offered by the organization but it may not be possible for them to imitate the people present in the organization (Calabrese et al. 2013). Hence, capturing the firm’s competitive knowledge in its human resource is offered considered to be a useful technique.
According to Ivanov and Mayorova (2015), although having good people in the organization is crucial, it is even more beneficial for the people in the organization to have a better management. Leadership plays a great role in determine the direction in which the different people function and for this reason. The management can lead the way for the target market. For this reason, it is often believed that a good management and a strong workforce would be beneficial to the organization.
For example, the national bank of Kuwait has established a strong employee base for itself which tends to assist the firm in dealing with the customers and provide them uninterrupted services.
Assets can be described as a useful aspect of an organization and any company which wants to be successful in the long run is required to have an access to certain important assets. These assets comprise of the capability to increase the performance of the organization and improve its earning capability. For this reason, various organizations often tend to invest in strategic assets that come in useful to them in the long run of the company. These strategic assets often comprise of trademarks, copy rights, names of the domain, long term business contracts, strategic plants, patents and other assets (Ghosh 2013). Moreover, for the companies who are involved in the medical team, the companies with good development and research assets will be successful in the given domain.
For instance, in Kuwait, the Kuwait Food company has various strategic assets at their disposal. These strategic assets which are present in the organization help it to provide better offerings to the organization which then assist it to achieve success in the long run.
A company has a large variety of goods to offer to the different consumers and very often, often these products are often imitated by the different companies which then tends to steal the show for the former company. For this reason, it is very crucial for the firm to have a differentiated aspect in their product which shall then assist the firm in achieving the long term advantage. Product differentiation can be described as a concept whereby the company tends to differentiate its offering from that of the competitor (Liu 2013). There are various ways in which a company can differentiate its offerings:
One can differentiate the product by size.
One can differentiate the product by origin.
One can differentiate the product by branding.
One can differentiate the product by the packaging
One can differentiate the product by adding an extra ingredient.
Product differentiation has various advantages as well, which comprise of creation of a niche market for the brand, leads to increased revenues and tends to lift up the brand name as well.
For instance, the Kuwait Oil company provides exceptional services to the different customers and in this manner, it is able to differentiate its offerings with respect to the services being provided to the organization.
According to Srivastava, Franklin and Martinette (2013), Finances tend to form a crucial aspect of the organization. Finance is often known as the blood of the organization and a company which has a good financial positioning will be able to harness the deals which may otherwise not be possible for be present (Vanpoucke, Vereecke and Wetzels 2014). The firm to avail to the different resources which may be beneficial for the organization in the long run.
If a company has an access to a low debt and has various cash resources at its disposal then it will be successfully able to make opportunistic investments and not face any problem with respect to the access to working capital, solvency and liquidity (Stead and Stead 2014). The financial statements which are present in the organization must comprise of the capability to be attractive to the different investors with the balance sheet acting as the foundational base of the company.
For instance, the United Beverage Company in Kuwait, tends to ensure that it maintains the financial capability of the organization which shall then assist in ensuring that it is able to perform well.
Technology can be described as a key resource of any organization and plays a major role in the competitive advantage of the firm. According to Robson (2015), technology has not only entered the manufacturing aspect of the organization but has also entered into the people management, service providing, packaging and other domains.
In order to gain a competitive advantage, different firms in an organization need to ensure that they have access to advanced technology which will then assist them in producing goods and providing services which shall assist them to create a positive image for itself.
Although competitive advantage is very crucial for the business, not all businesses possess the competitive advantages (Shapiro and Kaplina 2014). Hence, for this purpose, it is crucial for the organization to ensure that it can successfully develop this competitive advantage. The different ways in which the sustainable competitive advantage may be developed has been given as follows.
In order to ensure that the company is successful in the long run, the different employees present in the firm need to be trained well. This shall help in ensuring that the organization`s workforce is optimum. It is a known fact that the people component of the company cannot be copied and hence the knowledge base which remains with them cannot be copied easily (Chen and Chang 2013). Hence, for this reason, it is very crucial for the organization to ensure that only capable employees are hired in the organization and that those who are already present in the organization are trained as per the industry standards in order to ensure that they can work well for the welfare of the organization.
The business model of a firm should be such that it is able to deliver the value proposition to the organization. According to Hill, Jones and Schilling (2014), if the business model of the firm is accurate, it goes a long way in assisting the organization to achieve their goals and thus, it is the duty of the firm to indulge in relative components in the organization such that it is able to deliver a good proposition in order to ensure that the firm finds success in the long run.
Any company will not be able to perform well, if it is important that it understands the strengths of the organization and analyze the different core competencies as present in the firm. This shall enable the organization to understand the areas where it is lagging and help it to identify the core competitive areas and competencies in which it may innovate and provide valuable goods to the chosen business target audience (Chen and Li 2013).
Another method of creating a competitive advantage is to select the correct target audience for the organization. Once the segments as selected by the company are optimum in nature, the firm can then exploit its resources to serve the chosen audience. This shall help the firm in becoming popular and thereby attaining competitive advantage.
Therefore, from the given analysis it can be assessed that, competitive advantages are crucial in the business domain and in order to be successful a firm would be required to ensure that it has at least two and three competitive resources that shall assist it in attaining a sustainable competitive advantage and success.
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Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Ivanov, G. and Mayorova, E., 2015. Intangible assets and competitive advantage in retail: case study from Russia. Asian Social Science, 11(12), p.38.
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Vanpoucke, E., Vereecke, A. and Wetzels, M., 2014. Developing supplier integration capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal of Operations Management, 32(7-8), pp.446-461.
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