Distinctive Capabilities
Elements Distinctive Capabilities:
Architecture
- Corporate networks and relationships, internal and external architecture, win-win, supply chain management
Reputation
- Brand, and power of people in the organisation
Innovation: Hard and risky to sustain
- technological success but commercial failure – difficult process to manage and budget – number 2 developer often more successful (marketing R&D)
Strategic assets: Sustainability problems
- Natural monopoly due to regulations, sunk cost and only one supplier market demand
Principle:
Distinctive Capabilities – result of actions of many throughout the organisation
Issues:
Must be sustainable and appropriate to business
Experience curve: increased efficiency, specialization, innovation, greater productivity, improved resource mix
Thompson & Richardson, 1996, generic strategic competencies: Content – reflect ways adding value, Process – changing and improving content, awareness and learning – change management process in satisfying needs.
Applications:
To determine the organisations competitive advantage
Source Distinctive Capabilities:
Kay (2003)
