Factors That Promote Competitive Advantage - Essay Example

The various paradigms that significantly influence the performance outcome of businesses have become vital factors of competitive advantage in the contemporary global business environment.
Scholars assert that in contemporary times, resources like machines, factories, human capital, or intellectual property can be bought from the open market and therefore, they are not effective resources that could provide a competitive edge to a firm (Johnston, Scholes, and Whittington, 2005). But Lynch (2003) believes that resource-based strategy inherently includes all tangible and intangible assets that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness and therefore give it the necessary advantage. It is also true that organizational competencies in terms of organizational culture and leadership initiatives that exploit human capital for improved performance outcomes are highly relevant elements of competitive advantage (De Wit & Mayer, 2005). Hence, the research on the topic would greatly help identify factors and issues that facilitate businesses to gain leverage in the highly competitive business of contemporary times.

Study methods
The proposed research study would be qualitative and would involve a comprehensive literature review. Observation and interviews have been two major methods of understanding and evaluating the factors that impact the changing business dynamics. The sample data primarily comprised observations of the general public and local businessmen on the various perspectives of business competition and issues that influence their performance.
Results
The results showed the recessive trend had hugely impacted the business outcome and necessitated cost-cutting measures to meet the challenges of the time and survive tough economic conditions. It was also found that globalization and an increasingly multicultural environment also required more proactive measures to promote cross-cultural understanding for improved teamwork. Workplace conflicts adversely impact performance and need to be resolved early because if left long to fester, the situation can become explosive and critical for the organization.
Conclusion
One can, therefore, conclude that social change, economic trends, and technological factors are the major driving forces behind innovative business strategies of companies to gain significant leverage in market positioning. Indeed, managing change has become an intrinsic part of business strategy. It encourages innovative business strategies and creative practices to overcome the challenges of fast-changing technologies and the dynamics of the economy. The identification and evaluation of various factors that impact the efficiency and effectiveness of the delivery of organizational goals have become critical paradigms of business competition. These issues need to be addressed urgently if businesses want to maintain a competitive advantage in the current environment of global recessive trends. Hence, research on the topic would go a long way in evolving creative strategies to overcome the changing socio-economic dynamics of the societies that influence business decisions. Read More