Components of a Strategy Statement
The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It gives the firm a clear sense of direction and a blueprint for the firm’s activities for the upcoming years. The main constituents of a strategic statement are as follows: Strategic Intent An organization’s strategic intent is the purpose […]
Newsletters, Press Releases, and Writing for the Press
Press Releases and their Importance The previous articles discussed the various aspects of media and the role of media in shaping public opinion. We had also discussed how press conferences and press meets are to be organized and listed some points for the successful media management strategies. Continuing in the same vein, this article discusses […]
What is a Sales Funnel and its Implications for Marketers
Introduction The sales funnel is a concept that is used to visually describe the sales process from initial leads to final closure. It uses the image of a “funnel” where the opportunities are dropped into the funnel and go through the sieve towards each stage. The opportunities that do not make it to the final […]
Unethical Marketing Practices by Hotel Booking Websites
During the dot com boom, online travel agencies had taken the entire world by storm! Travel websites which offered customers the convenience of being able to compare and book hotels from the comfort of their home became bug business. Companies like Travelocity and Expedia have business interests all across the world. However, about twenty years […]
Introduction to Social Media Analytics
Social media strategy is key when it comes to reaching your audience and spreading the word about your business. But no strategy is complete without a clear plan for measuring the results. So, how do you understand the impact of your social media strategy? The answer is through social media analytics. What is Social Media […]
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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