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Audi's Strategic Capabilities - Case Study Example

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Summary
Discusses the foundations of strategic capability, specifically, it considers what is meant by tangible and intangible resources and what is meant by competences. What resources exist and how they are used.
Strategic capability is commonly understood as the ability of an organisation to perform at a level required and to survive in a situation, which is characterised by cut-throat competition…
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Audis Strategic Capabilities
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Download file to see previous pages Tangible resources are the physical resources such as land and building, man and money and intangible resources are non-physical assets such as knowledge, intellectual capital and reputation. Audi is known by its abundant resources in physical as well as non-physical form to differentiate it from its rivals. A large amount of skilled people with right aptitude is the most significant capital of Audi.
In a market of many giant car manufacturers with diverse products and product strategies, the first and foremost weapon of every automaker is to keep itself ahead in producing quality products at minimum cost. The strategic management basically relies on the philosophy that difference creates business. This difference from rivals firms can be achieved in many ways. Firms differ in competencies and resources. Cost reduction and efficient production has been the basis of strategic capability for many organizations. Audi has also been very strategic in reducing the cost of their production without sacrificing the quality of their products. This has made the company to turn itself as one of the most sought after automaker in the world.
Competitive advantage of an organization is the unique quality which its rivals firms do not possess. These competitive advantages can be attained in any area such as production, marketing or customer relationship management. Firms that possess these competencies in more fields as compared to that of its rivals are said to have competitive edge over others and they are likely to succeed more in relation to its competitors. As regards Audi is concerned, it has built overtime a highly effective and efficient multichannel customer care center across the world which helped the firm to be effective in individualized marketing campaigns, customer process costs. This has further reduced the lead-processing by more than 80 percent.
Discusses how the concept of organizational knowledge relates to strategic capability and how it might contribute to competitive advantage of organizations.
Organizational knowledge is the aggregate acquaintance accumulated through systems, routines, and activities of sharing across an organization. As such it is carefully accompanying to what has so far been discussed as the competences of an organization. Organizational knowledge has become so important because of several reasons. In the modern business environment organizations have become so complex and larger, as a result of people need to share their knowledge over wide sphere of activities and departments. Moreover, the information technology has improved dramatically so as to pave the ways for more accurate and real time knowledge processing and sharing.
Consider the ways in which strategic capability might be analyzed. First consider the concept of the value chain and value network as ways of understanding which activities add value and which do not. Conclude with a SWOT from the point of view of understanding strategic
capability in relation to competitors
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