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Question:

Explain how it ties into the strategic management concept.

 

Answer:

The article, ‘The Shareholder Value Triple Play’ is an interesting read that discusses about the resources and the capabilities that the organizations should hold. Authors mentioned that organizations should develop their core competency or Unique Selling Proposition through its resources and assets. The article says that employees are the biggest assets for service-based organizations. The success of failure of firms operating in service industry depends a lot on the capabilities of employees and the customer satisfaction depends on the customer-employees interaction. The article is based on the consumer good market. Many large, well-established companies in the food and beverage and broader consumer goods industries are struggling to deliver compelling shareholder returns. This is because the organizations are not able to develop core competency. Authors highlighted that the core competency of the organizations should be the one that is difficult to imitate. For example, Apple has the core competency of innovation. The competitors cannot imitate the unique design and the performance of i-Phone.

If an organization has the core competency of innovation then the competitors should not easily imitate that innovation. Likewise, the organizations can have the capabilities to produce the goods and service at low cost. In that case, the cost leadership would be the core competency of the company. In such a case, it is important that the competitors should not be able to produce the goods and the service at same cost. Likewise some companies can have the capability to produce unique products. In that case, it is possible that the competitors should not be able to produce the same good.

 

References

Tom Hansson & Abhijeet Shekdar. (2016). The Shareholder Value Triple Play. Retrieved from: https://www.strategy-business.com/article/The-Shareholder-Value-Triple-Play

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