Analytical CRM – Meaning and its Key Features
Analytical CRM supports organizational back-office operations and analysis. It deals with all the operations and processes that do not directly deal with customers. Hence, there is a key difference between operational CRM and Analytical CRM. Unlike from operational CRM, where automation of marketing, sales-force and services are done by direct interaction with customers and determining […]
How to End the Culture of Business As Usual After Instances of Corporate Scandals
The Worrying Decline of Corporate Governance Standards Worldwide Of late, there has been a worrying decline in corporate governance standards leading to the exits of many high profile CEOs (Chief Executive Officers) as well as Directors of Boards from such firms, as well as a breakdown in the compact between the corporates and their stakeholders. […]
eCommerce Industry in India
Indian eCommerce Party Continues Anyone who opens the newspaper or browses the internet these days cannot but escape the full page ads and the scrolling content offering mega discounts and other freebies on online shopping sites. Indeed, the worldwide rush to eCommerce is now catching up in India as well as can be seen from […]
The Business Case for Sustainability: Why it Pays off to be Clean and Green
Why it Pays off to be Clean and Green and to Follow Sustainable Business Practices In recent years, there has been a growing body of research and evidence which indicates that it is profitable for corporates and firms to be clean and green or in other words, there is a business case for running an […]
Building Customer Satisfaction, Value and Retention
In this world of extreme competition, companies with a total focus on customer are going to be the winner. Companies must understand importance of customer satisfaction and then build process around it. A satisfied customer will be a loyal customer. There are large offering of products and services available in the market then why the […]
The core competence approach of strategy views the business in a particular way. For this approach business are open systems intermingling with their environments to obtain resources and deliver outputs. As per this approach of strategy, the capacity of the business to build up core competences that are not acquired by its competitors and that generate recognizable profits for consumers form the basis of its superior performance.
The business can create competitive advantage in both new and current markets as below:
The collective learning or knowledge of the organization forms the basis of its core competences.
In recent time the study of core competences has concentrated more on knowledge as its main aspect. In an organizational perspective, principles, facts, skills, and rules which update the organizational decision-making, behaviour and actions are regarded as knowledge. The organization’s activities, competences, products and services are founded on this knowledge. Also the capability of the organization to build up new knowledge, and thereby core competences, faster and more efficiently when compared to its competitors form the key for its competitive advantage.
In the knowledge and resource-based approach to strategy, the point of concentration as the chief supply of competitive advantage is the business itself instead of the industry.
The business which is capable of performing extraordinarily in a global market is able to do so as it has certain qualities which make them both distinguishable from and better than their competitors. Core competences of the business are these distinctive qualities.
Core competences are certainly distinguishable for competences. While competences are Abilities acquired by all competitors in an industry form the competences where as core competences are acquired only by those who accomplish superior performance.
Core competences have to be based on superior knowledge. For a good strategy for business it is important to know the elements of the core competences, details of the knowledge on which they are formed, creation and management of knowledge and lastly about, the knowledgeable deployment of the core competences. Under standing these aspects are essential to give proper strategic direction to the business.
The exclusive source of core competence is knowledge. For this reason knowledge becomes the critical reason for an organization to achieve sustainable competitive advantage. As an upshot of the rapid speed with which the business environment is changing in the present scenario, competitive advantage is not easy to accomplish. Even more difficult is to sustain it.
To accomplish and sustain competitive advantage it is essential to generate new knowledge at a pace which is not possible for its competitors to catch up with. Individual and organizational learning form the basis for knowledge creation.
In short the present business world demands that organizations have to build up behaviours and structures which will facilitate them the generation and handling of knowledge more successfully than their competitors.
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