A DOD core competencies is the one that able to open doors to other opportunities and able to represent such a unique blend of tacit and explicit knowledge that it cannot be copied by competitors. Core competence can help product and services to create a new products and services that provide potential access to a wide variety of markets, makes a significant contribution to the customer value, enables a business to deliver a fundamental perceived customer benefits of the end product. To find a good core competencies, one must first examine company’s resources and capableness.
If the company have sufficient resources and necessary capableness that can generate good core competencies. If the company successfully implement a good core competencies, they can create a superior value creation. One of the important element that a company must possess in order to get a sustainable competitive advantage is, practice a distinctive capabilities. Distinctive capabilities is the characteristics of the company which cannot be replicated by competitors, or can only be replicated with great difficulty which are the basis of sustainable competitive advantage.
Distinctive capabilities can be of many kinds, Intellectual property rights, exclusive licenses, statutory monopolies, strong brands, leadership, tacit knowledge and skills, teamwork, organizational culture, business processes and partnerships. An Intellectual property right Is an advantage to Increase competitive advantage. An Intellectual property Is a protection and the extent to which the Innovator could fully capture the returns varies according to the type of protection used and the nature of product and service innovation.
Once an innovator creates a product for example, over or service, they could either produce and commercialism it themselves via firm formation or contract this innovation out to another firm with the necessary complementary assets to produce it either through licensing or a Joint venture. PR can ensure that company get the benefits from their works and their works are not stolen before they even get benefit from it. Exclusive license is where the licensor agrees not to grant other licenses that have the same rights within the scope or field covered by the exclusive license.
Exclusive licenses can help company to have a nominative advantage that other competitor will never have. Customer focus creates competitive advantage, customer focus acknowledges that the more a company understands and meets the real needs of Its customers, the more likely It Is to have happy customers who come back for more, and tell their friends. By focusing on the customer’s agenda, buying cycle and best interests. At the heart of customer focus is the art of listening constructively, customer focus means taking the customer seriously.
Studies prove that most of company do not have a systematic approach to their marketing and selling. Company can gain a huge advantage by creating system approach to marketing and selling. When a company create a system, they will put a lot of thought into the process. This will helps them prepare for all situations they might encounter when selling. With a system, marketing and selling process breaks down into small steps, its easier to see the problems and bottlenecks and its harder to get off track because the entire process exists to do one thing, to sell.
A system helps to track and reports key performances as a company test each step of the marketing and selling process, company will learn and get smarter. To understand customer, company must first do customer care or customer service. Customer services the provision of service to customers before, during and after a purchase. Customer service is a series of activities designed to enhance the level of customer satisfaction, that is, the feeling that a product or service has met the customer expectation.
If the company really take care the customer, they can increase customer value, and customer loyalty, Customer loyalty will ensure the customer will be loyal to only one brand and service, which means it can help to enhance sustainable competitive advantage. Other than customer service, customer driven innovation is also an activity to increase sustainable competitive advantage because it helps company to become more competitive in the marketplace. Customer driven innovation is about working with company’s customer as a partner in the innovation process by breaking down the wall between the company and their customer.
In order to keep sustainable competitive advantage, customer-driven innovation is not a one-time event. Its a philosophy,a mindset and a habit. A company must live this principle daily if they wish to keep creating an innovative customer alee, developing attractive product designs and ultimately win the value innovation competition game. One of the way to stay competitive in the market is to cope with uncertainty and massive changes in the environment. As a basis to start strategic action, a company must do some approach or strategy to face changes by doing dynamic strategy.
The dynamic model of the strategy process is a way of understanding how this changes occur and what strategic action need to be taken. It is and approach to do a dynamic strategic planning, involves in a complex pattern of actions and reactions. One way to scan this changes is by using resource-based model theory,that is a view from the concept of economic rent and the view of the company as a collection capabilities. It is an attempt to find out what is the firm’s unique resource and capabilities that can provide as a basis of a strategy.
The business strategy chosen should allow the firm to best exploit its core competencies relative to opportunities in the external environment. Instead of Just using Michael Porters five forces model, which is only focusing on the company’s external competitive environment, in contrast, the resource-based perspective highlights the need for a fit teen the external market context in which a company operates and its internal capabilities. A company can sustain its competitive advantage if they able to use their unique capabilities to avoid the threats from the external environment.
Dynamic environment in the market, competitive strategies need to be implemented. Competitive strategy refers to how a company competes in a particular business, it is concerned with how a company gain a competitive advantage through a distinctive way of competing. In today’s dynamic markets and technologies have caused it is harder for a company to sustain competitive advantage. So, many approach need to be used in order to sustain competitive advantage but didn’t know which approach is the most suitable such as TTS, benchmarking, reengineering and so on.
In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match. One way to sustain competitive advantage is by erecting barriers to entry. The advantage is that it can keep firm’s competitors at bay. It can make the market less contestable. They are designed to block potential entrants from entering a market profitably. Continuous Innovation is also an action that will help to sustain competitive advantage. Len this era, it is a very high competition between companies demands a renewed emphasis on innovation.
This new economy is led by those who innovate, the one who create, find or combine knowledge into new products, services and distribution methods, faster than their competitors. Innovation covers a lot of sectors such as business, strategy, organizational, technology, product, process and marketing. Systemic innovation, is a group of a system that apply a better solutions that meet new requirements, inarticulate needs, or existing market needs. Company who always update their product or services to be the best in the market, will able to sustain their competitive advantage.
To sustain competitive advantage through continuous innovation, companies must innovate many sectors until their company always ahead than other competitors. In order to become always ahead, companies must have a leading system innovation process. To lead innovation successfully, companies must start with themselves, the leader. Elf the leader always ask their people to be entrepreneurial, to innovate and grow but do not do so themselves, the company will be stagnant or in other word “a living dead”. In contrast, if the leader seems have a broad knowledge and know lots of many areas, followers will be motivated to learn all the boss knows.
The impact is that the company will be able to be a leading product or service in the market. If the boss can lead their followers to the direction where they don’t know and curious about, the leader will develop some sense of curiosity. Through this curiosity, the leader will be able to direct them to the environment of learning and create a culture of questioning. Establishing the culture of innovation requires a broad an sustained effort. Though changing a company’s culture is never ass, with the right leadership, cultures can reshaped and amazing results can accrue.
The important practices and habit to sustain competitive advantages, company must have a balanced organization. A balanced organization is where the company never had a bad management in all daily duties. An organizational culture that is in balance, provides the ideal conditions for a broad spectrum of diversity to flourish. The characteristics of a balanced organization is that the companies have a good leadership, a positive corporate culture, empowering employees, well-managed performance and corporate capabilities.
When a company is a balanced organization, they have the power to posses a sustainable competitive advantage. One way to find teaching and coaching. A learning organization always push and support their members to continuously transform themselves. People who always learn, will master a knowledge in order to survive and thrive in the new economy because market champions keep asking learning questions, keep learning how to do things better, and keep spreading that knowledge throughout their organization.
Learning provides the catalyst and the intellectual resource to create a sustainable competitive advantage. Knowledge organizations obtain competitive advantage from continuous learning, both individual and collective. The ability to learn faster than competitors may be the only sustainable competitive advantage. After they gained knowledge from learning, they need to teach among members in the organization in order to generate or find out the positive attributes. The unemployed information may generate competitive advantage.
A winning organization are teaching organizations,teaching organization is one in which everyone is a teacher, everyone is a learner, and reciprocal teaching and learning are built into the fabric of everyday activities. This is where everybody teaches, everybody learns and discussing which the best practices, processes can be use. The environment of teaching is built around virtuous teaching cycles where teaching isn’t one-way but its interactive, Interaction among them generates knowledge, it makes everyone smarter.
The knowledge that generated is an attributes needed in the knowledge economy. A knowledge economy is knowledge about positive attributes for competitive advantage. A company must implement coaching organization, where after the organization members learn, teach mongo each other than they must coaching and being coached. It creates an environment where the behaviors and practices involved in continuous learning, exchange of both explicit and tacit knowledge, reciprocal coaching and self- leadership development are actively encouraged and facilitated.
Coaching is to inspire commitment and high performance, to stimulate creativity and to model accountability. Clearly, establishing a culture built around coaching is one way that organizations can create a powerful competitive advantage. A company that sustained learning, teaching and coaching organization, is able to generate their sources and capabilities to add positive attributes towards their product and services. If it is continually practices, a competitive advantage is created.
When a company knows the strength of their product and services, they can hold, capture and posses it to become their competitive advantage. Once a company recognizes the competitive advantage of their product and services, they must sustain in order to compete in the market with their competitors. One way to do this is by, using Kamikaze strategy. Kamikaze strategy is a Japanese management practices where they focusing on continual improvement and maintenance. Kamikaze strategy has two major components, which is maintenance and improvement.
Maintenance is about establish policies, rules, directives and standard operating procedures and then work towards ensuring that everybody follows it. Improvement is about management works continuously towards revising the current standard, once they have been mastered, and establishing higher ones. Kamikaze strategy is assuring maintenance and improvement continuity. If a company always do a never-ending efforts for improvement and maintain current technological, managerial and operating
