Skip to main content

Core capabilities and distinctive competencies

Normally, most companies owned and control most of the resources that enter their businesses. These include human resources, materials, machines, information and energy.

But these have change significantly. Many companies now out-source less critical resources if they can get higher quality or lower cost.

India has developed reputation as country that can provide ample outsourcing support.

Nowadays th key is to own and nurture the resources and competencies that make up the essence of the company business.

Nike, for example does not manufacture most of its shoes, because a certain Asian manufacturer is more competent in this task. What Nike does instead is to nuture  its core capabilities: superiority in shoe design and merchandising.

A core capability has two features:

1. It makes significant contribution to customer value.

2. Competitors sometimes find it to imitate 

Competitive advantage is enjoyed most from when a company possesses distinctive capabilities

Core capabilities may be area of technical and production expertise, distinctive capabilities describes excellence in broader business processes.

Back in 1997, a silicon valley based NETFLIX demonstrate its capabilities by pioneering online DVD rental while most people were still struggling with their VCRs. The founder Reed Hastings that DVD was the home medium of the future.

He raised some funds, started,  attracted many customers and took the business public 2002.

NETFLIX distinctive capabilities was then, premised on overnight delivery, deep catalog of 65,000 movie titles, linked to proprietary search softwares, that allowed customers to search for obscure films and discover new one.

The Ransford Business School an online based institution offers great case stories about organizations and businessmen and women that have demonstrated what it takes to manage businesses successfully. It also offers 6 modules program in 3-Month only, a Mini MBA program designed to sharpen executives skills to perform extremely in their organizations.







Comments

Post a Comment

Popular posts from this blog

Sweet Spot

How do you create a digital strategy that involves customers in an energized social community?  How do you create an engaged, active “go-to” website?   Prophet's David Aaaker says, You must change the orientation of marketing from selling the offering, the brand, and firm to becoming an active partner with a shared interest program around a customer’s “sweet spot.” A sweet spot reflects customers’ “thinking and doing” time, beliefs and values, activities and passions, possessions or places they treasure. Ideally, it would be a part of, if not central to, their self-identity and lifestyle and reflect a higher-order value proposition, much beyond the benefits provided by the offering. To illustrate, Pampers went beyond diapers by creating the Pampers Village community that provides a “go to” place for all issues relating to babies and child care. Its five sections – pregnancy, newborn, baby, toddler, and preschooler – all have a menu of topics. Its online ...
Post a Comment
Read more

What is Biri marung?

Biri marung" is a term in Chewa/Nyanja, a language spoken in Zambia, Malawi, and parts of Mozambique. It directly translates to "hyena in the sky" or "flying hyena.  It is often used in folklore and traditional beliefs in African cultures to refer to supernatural beings or mysterious occurrences, particularly those associated with witchcraft or spirits. In music, "Biri Marung" is a popular Amapiano track released in November 2024 by South African artists Mr Pilato, Ego Slimflow, and Tebogo G Mashego, featuring Sje Konka, Focalistic, DJ Maphorisa, Scotts Maphuma, and CowBoii.  The song has gained significant attention, with its official audio available on YouTube.  Additionally, it has been featured on various music platforms, including Apple Music.  The track has also inspired dance challenges and covers on social media platforms like TikTok, contributing to its viral status.  "Biri Marung" has been recognized for its impact in the music industry...
Post a Comment
Read more

New ways to business capital

A Business capital, often referred to as capital in a business context, is the financial resources or assets that a company or a sole proprietorship uses to operate, invest, and grow. Traditionally, it can come from various sources, including: 1. Equity Capital: This is the money invested by the business owners or shareholders. It represents ownership in the company and can be in the form of common stock or retained earnings. 2. Debt Capital: Debt capital is borrowed money that the business must repay with interest. This can include loans from banks, bonds issued by the company, or other forms of debt financing. 3. Working Capital: Working capital is the money a business uses for its day-to-day operations, such as paying bills, salaries, and purchasing inventory. 4. Fixed Capital: Fixed capital refers to the funds invested in long-term assets like buildings, machinery, and equipment. 5. Venture Capital or Angel Investment: Startups and high-growth companies may secure capital from vent...
Post a Comment
Read more