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Managing Capability - Essay Example

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Debenhams is one of the leading worldwide, multi-channel brand which is well-known in about 92 countries of the world through stores and online as well. The supervisors of Debenhams put their customers at the heart of everything they do and are very zealous about the products…
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Managing Capability
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Download file to see previous pages The main purpose of their employees is to meet the needs of customers and their expectations as well.
In the literature of marketing, one of the most important issues is competitive advantage that had gained significant attention. Authors and scholars have focused on the identification of the most successful competitive strategies that any organization prefers to pursue so that they can produce and facilitate supernormal advantages and benefits. The structure conduct performance of any industrial organization has great influence on this area of research, which significantly described and explained that competitive advantage derives from fortunate market positions (Helfat & Lieberman, 2002).
The resource Based View (RBV) was another explanation of the source of competitive advantage, which was developed in the early 90s. This view identifies the sources of advantage inside the firm, which is viewed as a bundle of resources (Kay, 1999).
A major difference was indicated between competitive strategy framework and the resource based theory. Porter, a well-known author, viewed a firm as a bundle of unique resources and by resource based scholars as a bundle of activities. The competitive strategy framework, given by Porter makes the analysis of environment- performance relationship more prior. Strategic capabilities can simply be defined as: Complicated set and bundles of skills as well as accumulated knowledge that makes a firm able to coordinate activities and make use of their possessions to promote economic value and maintain economic advantage. In order to identify strategic capabilities and its types, it is classified so that these can be applied in the required field for the purpose of an organization (Kay, 1999).
These capabilities allow a firm to keep costs at lower level as well as enable a business to respond to the changing needs of the customers rapidly. The role of strategy formulation quality and its ...Download file to see next pagesRead More
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