Competitive Advantage Research Paper Example | Topics and Well Written Essays - 1250 words

Competitive Advantage - Research Paper Example Companies can only achieve and sustain competitive advantage if only their services and means of delivering them demonstrate crucial attributes that correspond to the crucial purchasing criteria of a crucial group of clients. Similarly, sustained competitive advantage results from the long-term difference between goods and services of one company and the products of its rivals in the customers’ mind. In the modern business environment, companies compete in a dynamic and challenging environment that has been changed by various factors ranging from globalization, uncertainty, abrupt changes to increasing information technology uses (Whitley, 2007). Therefore, attaining and sustaining competitive advantage is the main concern in the mind of many leaders in the competitive and moderately growth markets that characterize various modern businesses and competitive advantage sources are of crucial interest for many organizations in the modern business. ... Core competencies are crucial for organizational competitive advantage and performance as they imply the abilities and skills for effective resource deployment through the processes and tasks of an organization. It is a cross-functional capabilities combination and coordination, for instance, a competency in development of products in one part of the firm may be a result of an integration of capabilities of systems of information management, marketing abilities and product and service production capabilities in that division. These capabilities are fundamental to an organization attaining competitive advantage (Dosi, Nelson, & Winter, 2000). When analyzing core competencies of an organization, managers should realize that competition among organization is a race for mastery of competence to secure market position and power. Core competencies are increasingly crucial organization’s ability because of its relevance to the prosperity of the organization in the marketplace. The co mpany can use its competencies to develop their unique products and services and market them to gain more profits than their competitors. Similarly, choosing people with required skill and expertise, upgrading or expanding employee’s capacities through training enhances the competitive advantage of the company. As the experience builds up the organization reaches the level of its ability to carry its activities effectively, at a manageable cost and the capacity to start converting it into the true competitive advantage. Organisational resources and capability is crucial competitive advantage source for the success and growth of the organization in the marketplace (Porter, 2004).  Ã‚