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

Is Liberalism under attack?

I believe the answer may be yes. It's yes because two powerful states in Asia: China and Russia have consolidated authoritarian regime, that the end points may not be visible soon.  These two forces are working tirelessly to globalize oligarchy and authoritarianism. Their gospels has been noised abroad. Their influences influences have been displayed in some nations (with pseudo democracy) in the global south,  In Africa, liberal democracy have been badly weaken by the character of people in leadership: abuse of offices, stealing of public funds without questions and necessary punishments, plus rigging of presidential elections, leading to changing fortunes ànd quagmires. Beside, the curent hyper-inflation in Nigeria is blamed on the recent resurgence of Adams Smith and liberal economics doctrines (and partly by loyalty to Washington consensus: policies and insititios designed by the US government to globalize capitalism and it's associated cultural systems). The market is now
Post a Comment
Read more

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 commu
Post a Comment
Read more

You can Create New Business Subcategory by altering an establish business category, competes in the pacific northwest, united states, turning the conventional idea of an original category upside down Like Umpqua Bank.

 Umpqua Bank competes in the pacific northwest, united states, turns the conventional idea of brand category upside down. Most consumers would never describe  a bank transaction a soul-satisfying, but Oregun-based  Umpqua Bank   become affiliated with cafe/retail categories in order to establish points-of-difference between itself nd other banks. Its stores offer music, coffee, wifi access, and of course, banking service. About a decade ago,  Umpqua  trailed U.S bank and Well-fargo in market share but later decided to go into new territory: Think bank across with your local Starbucks. No longer called bank or branches, “Umpqua Stores  were designed to stimulate cozy connection between customers, and feature computer cafe with wifi access and branded merchandise, including Umpqua’s own blend of coffee - must-have in the Northwestern United states, a coffee obsessed region. ”  Like starbucks,  Umpqua Bank  made musics part of its product mix. Working with portland’s Rumblefish,
Post a Comment
Read more