Customer Acquisition – Meaning and its Process
Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers. The importance of customer acquisition varies according to the specific business situation of an organization. This process is specifically concerned with issues like acquiring customers at less cost, acquiring as many customers as possible, acquiring customers who […]
Service Product Management: An Oxymoron or a Reality?
Till now, we have considered how product management is done in companies that have different product lines and brands. Now, in this article, we would consider whether the term service product management or the process of managing the entire lifecycle of services is an oxymoron or is indeed a concept that is realistic and feasible. […]
Relationship Marketing Using the Internet
Introduction With the advent of the internet and big data analysis, organizations have been able to use relationship marketing and database mining as a powerful marketing tool. This combination of the internet, technology and relationship marketing is referred to as customer relationship management. Customer relationship marketing uses direct marketing, relationship marketing and database mining to […]
Customer Modeling – Meaning and its Different Aspects
Customer modeling is the process of predicting and forecasting behavioral aspects of customers’ future perspectives. The process includes identification of marketing and campaigning targets and optimizing predictive analysis. Following are the broadly discussed aspects of customer modeling: Response modeling – Modeling enhances the organization’s knowledge on each individual customer and identify if the customers under […]
Introducing and Naming New Products and Brand Extension
For a given company, there can be variety of product and services under different brands. Brand-product matrix is used to better understand current offering of the company. This matrix helps companies understand product line (product category) and brand portfolio (brands for different products). Similarly, brand hierarchy concept helps companies understand association among offered brands. Brand […]
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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