Nobody downloaded yet

Organizational Resources and Establishing Competitive Advantage - Essay Example

Comments (1) Cite this document
Summary
This paper "Organizational Resources and Establishing Competitive Advantage" focuses on the fact that the potential of organizations to develop a competitive advantage is depending on the level of achievement of the organizational goals, which is regarded as key in whether a company is successful. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER99% of users find it useful
Organizational Resources and Establishing Competitive Advantage
Read TextPreview

Extract of sample "Organizational Resources and Establishing Competitive Advantage"

Download file to see previous pages It has been made clear that not all organizations are able to effectively develop their resources. Also, the continuous increase of competition in the global market is a factor that can negatively influence the efforts of organizations to improve their position in the market using their resources and capabilities. It seems that in the long term, the transformation of organizational resources into a competitive advantage has to be carefully managed since the challenges in the internal and the external organizational environment are likely to be many; as the conditions in the organizational environment become more hostile, under the influence of the global market pressures, the support that an organization has to provide to its resources has to be increased, otherwise their chances to become a competitive advantage are significantly reduced. At this point, the following issue appears: how an organization can secure that its resources will become, even in the long term, competitive advantage? It seems that such a prospect cannot be considered as guaranteed, especially in industries where competition is high. This issue is further analyzed in the sections that follow using the literature published in this field. 2. Organizational resources and their use for the establishment of competitive advantage 2.1 How an organization can establish competitive advantage from its resources The identification of the exact characteristics of competitive advantage in modern organizations is a challenging task. Researchers and theorists have tried to identify the criteria under which organizational resources can become a competitive advantage, but the results of their studies seem to be contradictory. Most commonly, the emphasis is given on the balance between the firm’s strengths and weaknesses, as the specific relationship can also affect the firm’s opportunities and threats. The interaction of the above sectors in the context of organizational growth is reflected in the SWOT analysis framework. The above framework is based on the view that firms that are likely to emphasize on their internal strengths and control their weaknesses are more able to face environmental threats, a fact that can help them to develop competitive advantage towards their rivals (Barney 1995). However, the terms under which the specific effort would be successful should be further explored. Indeed, even if effectively organizing its internal environment and if it tries to avoid major market risks, a firm has still to face the threat of an unexpected downturn if there are no other strategic alternatives in place, as for example strategic alliances with other firms that control an important share of the relevant industry. On the other hand, Peteraf (2006) noted that there are certain conditions that can increase the potentials of an organization to develop a competitive advantage. These conditions could be described as follows: ‘superior resources (heterogeneity within an industry), ex-post limits to competition, imperfect resource mobility, and ex-ante limits to competition’ (Peteraf 2006, p.179). It is assumed that organizations that seek to develop a competitive advantage should focus on particular conditions.
This view can be criticized as of the lack of explanations regarding the potentials of these conditions to exist in all organizations, meaning especially those organizations operating in different industrial sectors.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Organizational Resources and Establishing Competitive Advantage Essay, n.d.)
Organizational Resources and Establishing Competitive Advantage Essay. Retrieved from https://studentshare.org/management/1393231-strategic-management
(Organizational Resources and Establishing Competitive Advantage Essay)
Organizational Resources and Establishing Competitive Advantage Essay. https://studentshare.org/management/1393231-strategic-management.
“Organizational Resources and Establishing Competitive Advantage Essay”, n.d. https://studentshare.org/management/1393231-strategic-management.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ru
russelyundt added comment 1 day ago
Student rated this paper as
I didn’t know how to start my text. "Organizational Resources and Establishing Competitive Advantage" helped me out a lot! Especially the list of closing part was valuable.

CHECK THESE SAMPLES OF Organizational Resources and Establishing Competitive Advantage

Competitive Advantage

...purchasing criteria of a crucial group of clients. Similarly, sustained competitive advantage results from long-term difference between goods and services of one company and the products of its rivals in the customers’ mind. I will analyze the significance of creating better core competencies, strengths of resources, and capabilities of the organisation can be a crucial way of attaining competitive advantage. It will also examine the ethics and social responsibility and its role in creating and sustaining competitive advantage in an organisation. Discussion In the modern business environment, companies compete in a...
5 Pages(1250 words)Research Paper

Firm Resources and Sustainable Competitive Advantage

...Firm Resources and Sustainable Competitive Advantage It is extremely important to state what strategic management is all about because this basic understanding provides the breeding ground for the further explanations in this paper. Strategic management could be defined as the central processing unit of a firm because it takes into account all the decisions taken at each and every level and also generates its own decisions; the strategic management framework also provides policies to implement these decisions and also a framework to evaluate these decisions so that they can be bettered off. Strategic management states the company’s goals and objectives, both for the short as well as the...
8 Pages(2000 words)Research Paper

Competitive Advantage

...to the company since it enjoys a long - term advantage free from imitations. No matter the magnitude of competition a good sustainable competitive advantage prevails. (Collis and Hussey, 2003) A sustainable competitive advantage is put up under three types of assets namely: - 1) The market positions - Under this we have the company's structural assets, financial, reputation assets, and lastly technological assets. All these assets can greatly determine the performance of a given company. 2) Management and organizational procedures. Harmony among members of any given firm is the major determinant of...
8 Pages(2000 words)Case Study

Competitive advantage

...a chance to control production (Kazmi 2008). In instances where the company wishes to increase output, it simply increases the input. This is not the case where suppliers have to be negotiated with leading to wastage of time. The organisation is also able to achieve exclusive access to a scarce resource which offers a barrier to entrants and offers a direct competitive advantage. Expansion of core competences When engaging in activities previously offered by suppliers and customers, a firm improves on its employees’ core competences. This in turn results in increased satisfaction in the workforce which is important towards achieving organisational goals. Customer service benefits A firm...
6 Pages(3000 words)Essay

Competitive advantage

...Nucor Case Study Instead of a separate performance appraisal system, Nucor judges performance based on quality, productivity and profitability. What are the advantages and disadvantages of Nucor’s choice? The primary advantage that Nucor gets out of its performance judgement system is outstanding labour relations. There are no union based problems as employees are satisfied and trust the company for their good. Moreover, Nucor’s system helps employees earn more money than their counterparts through innovative schemes. This ensures that the most productive people are brought to the front and appreciated accordingly. In most other workplaces, all people earn equal salaries whether they work equally or not....
2 Pages(500 words)Essay

Competitive Advantage

...Competitive Advantage Affiliation: Factor Tim’s Coffee Shoppe Competitor Queequeg’s Coffee) Competitor 2 (Tim Hortons) Score Comments Score Comments Score Comments Quality 3 Minor strength 3 Minor strength 4 Major strength Location 4 Major strength 3 Minor strength 3 Minor strength Employees 2 Minor weakness 2 Minor weakness 3 Minor strength Profitability 2 Minor weakness 2 Minor weakness 3 Minor strength Product 4 Major strength 2 Minor weakness 3 Minor strength Price 1 Major weakness 2 Minor weakness 2 Minor weakness Service 3 Minor strength 3 Minor strength 3 Minor strength Advertising 2 Minor weakness 3 Minor strength 4 Major strength Total 21 20 25 1 – Major weakness, 2 – Minor...
4 Pages(1000 words)Research Paper

Competitive Advantage

...Competitive advantage It is the desire of every company or organization to the on top of its game in all areas. This is better termed as competitive advantage and its entails a company having pool of dynamic skills, strengths and abilities that will propel it far above its competitors. In addition to being the very best in the industry, some companies find it more appropriate to differentiate their products and services from those of other companies (Pearce & Robinson, 2012). In an effort to create an edge in competitive advantage, it is advisable to factor in all areas such as cost, differentiation and speed (Pearce & Robinson, 2012)....
1 Pages(250 words)Assignment

Competitive Advantage

...Barnes & Noble is the industry leader in the book industry. The company generated $7.13 billion in sales in (Barnesandnobleinc, . The organization holds various competitive advantages over a small bookstore. As a public company whose stocks are traded in the New York Stock Exchange Barnes & Noble has greater access to capital than small bookstores. The firm has the ability to raise capital through the sale of stocks and bonds. The company also has a superior marketing and advertising budget which has enabled Barnes & Noble the ability to build brand value. Barnes & Noble has the greatest product variety in the industry in both books and e-books. Due to the size of the company the firm is in a better position to offer lower prices... & Noble...
1 Pages(250 words)Assignment

Competitive Advantage

...the opportunities to pursue with the available resources; individual’s goals in companies and the pressure put on the company to invest. Governments are thus supposed to encourage organizations to uplift their performance with strict standards for products; focus on creating specialized factor; kindle demand for advanced products and encourage local competition (Johnson, Whittington, Scholes & Pyle, 2011). Comparing Porter’s model with Hofstede’s dimensions From the two models, it has been observed that each of them has focus of improving the comparative advantage of organizations. Hofstede on one hand emphasizes on a bifurcated view of comparative advantage which...
4 Pages(1000 words)Research Paper

Competitive advantage

...COMPARATIVE ADVANTAGE THROUGH E-COMMERCE LOGISTICS al Affiliation) Key words: Comparative Advantage Study All statistical surveying reports demonstrate a consistent, critical increment of online deals at the cost of conventional disconnected from the net retail. Satisfaction of online requests, in any case, is testing. With a CATELOG concentration in logistics, open doors that can help increment online deals in a productive way will be mandatory. Three angles are fundamental to the task: Cross-fringe retail logistics (Abnamro 2011). While online channels have no fringes and take into consideration snappy global extension, shopper inclination for sorts of e-satisfaction is prone to contrast crosswise...
3 Pages(750 words)Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Organizational Resources and Establishing Competitive Advantage for FREE!

Contact Us