What is Consumer Behaviour – Meaning, Concepts, PPT
Before understanding consumer behaviour let us first go through few more terminologies: Who is a Consumer? Any individual who purchases goods and services from the market for his/her end-use is called a consumer. In simpler words a consumer is one who consumes goods and services available in the market. Example – Tom might purchase a […]
Competitor Analysis – Meaning, Objectives and Significance
Organizations must operate within a competitive industry environment. They do not exist in vacuum. Analyzing organization’s competitors helps an organization to discover its weaknesses, to identify opportunities for and threats to the organization from the industrial environment. While formulating an organization’s strategy, managers must consider the strategies of organization’s competitors. Competitor analysis is a driver […]
The Media and its Contributions to Social Movements
The previous articles in this module discussed how the media plays a prominent role in acting like a watchdog in democracies. This article looks at how media can be a force for good in oppressive regimes and how a vigilant and alert media can help the citizenry overthrow unpopular and repressive rulers. The best example […]
Driving Value Proposition through Operations Excellence
Leadership at the market place doesn’t come by easily. Organizations have got to work towards it by innovating their product and value proposition all the time. Establishing customer relationship with a long term perspective becomes imperative. Today the customers are highly knowledgeable and demanding. The rules of the game have changed along with the change […]
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 […]
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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