Building sustainable competitive advantage
In the strategic realm, organizations illuminate paths for stakeholders — employees, customers, business alliances, community and shareholders — guiding them toward a common direction. However, while many organizations develop strategies, few base them on their distinctive competencies.
Build
Economic Moat
Shape
value customers recognized that they could not find from the competitor
Build
This strategic approach involves aligning resources, processes, and people towards enhancing those unique capabilities that differentiate the organization from its competitors. By focusing on strategic investments and initiatives aimed at developing and nurturing distinctive competencies, organizations can fortify their competitive position and achieve sustainable success in the long run. Research by many management thinkers including C.K. Prahalad, known for his work on competitive strategy and core competencies, emphasized the significance of leveraging distinctive competencies in his seminal 1990 Harvard Business Review article, "The Core Competence of the Corporation" underscores the importance of leveraging distinctive competencies in strategy formulation.. Organizational distinctive competencies, encompass both tangible and intangible facets. These competencies are crucial for establishing a competitive advantage in today's dynamic landscape. While tangible assets such as infrastructure and technology remain vital, the intangible elements like brand reputation, innovation culture, and human capital increasingly drive organizational success. These intangible assets are not only harder to replicate but also require significant investment and time to cultivate. Indeed while leveraging both tangible and intangible competencies is essential, organizations must also have a clear strategy for building or strengthening their distinctive competencies.
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