Capabilities and competencies as a source of competitive advantage in a mature market
Laurén, Tiina (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202304235957
https://urn.fi/URN:NBN:fi:amk-202304235957
Tiivistelmä
As the company strives for a new, mature market, it needs a competitive advantage to stand out and avoid price competition. The need for competitive advantage is even greater when the products are commodities and the company and product brands are not well-known. The competitive advantage must be sought from internal capabilities and competencies, from their ability to respond to the market demands innovatively. The strategic management process can map inner strengths and weaknesses as well as external opportunities and threats, which create the basis for strategic choices and defining competitive advantage.
The target of the study was to map the functionality of the strategic management process in the Case company, and the possibility of the company's capabilities and competencies serving as a source of competitive advantage. The capabilities and competencies were assessed against the resource-based view criteria for valuable (V), rare (R), inimitable (I), and non-substitutable (N) resources. The study also investigated the ability of the business-level mission to guide the development of the capabilities and competencies and the future state of the business. The qualitative research method and the Case study were chosen as the study approach. Empirical data was collected through interviews, focus groups, observation, and secondary data.
Based on the results, the strategic management process is functional, but there is a danger that the in-formation obtained will remain a static snapshot. Attaching concrete actions to the identified development targets that make the model more dynamic is essential. The mission was perceived as unambitious and static. The study identified four capabilities and competencies critical to the Case company. Those were the environmental leadership, expertise, innovativeness, and brand-building know-how. Only skills related to environmental leadership fulfilled all the VRIN characteristics. The study found development targets for all four capabilities and competencies and where their ability to create a competitive ad-vantage can be improved. It also became clear that the company's sources of competitive advantage are based on more than one capability or competence. It is a unique combination of values and actions, which is difficult to copy.
The research topic is an exciting approach for the industry in question to map its market situation and reflect the internal ability of the Case company to meet the needs of a mature market creatively and successfully. The research offers insights, development targets, and ideas for further research regarding individual capabilities and competencies, market areas, and competitors.
The target of the study was to map the functionality of the strategic management process in the Case company, and the possibility of the company's capabilities and competencies serving as a source of competitive advantage. The capabilities and competencies were assessed against the resource-based view criteria for valuable (V), rare (R), inimitable (I), and non-substitutable (N) resources. The study also investigated the ability of the business-level mission to guide the development of the capabilities and competencies and the future state of the business. The qualitative research method and the Case study were chosen as the study approach. Empirical data was collected through interviews, focus groups, observation, and secondary data.
Based on the results, the strategic management process is functional, but there is a danger that the in-formation obtained will remain a static snapshot. Attaching concrete actions to the identified development targets that make the model more dynamic is essential. The mission was perceived as unambitious and static. The study identified four capabilities and competencies critical to the Case company. Those were the environmental leadership, expertise, innovativeness, and brand-building know-how. Only skills related to environmental leadership fulfilled all the VRIN characteristics. The study found development targets for all four capabilities and competencies and where their ability to create a competitive ad-vantage can be improved. It also became clear that the company's sources of competitive advantage are based on more than one capability or competence. It is a unique combination of values and actions, which is difficult to copy.
The research topic is an exciting approach for the industry in question to map its market situation and reflect the internal ability of the Case company to meet the needs of a mature market creatively and successfully. The research offers insights, development targets, and ideas for further research regarding individual capabilities and competencies, market areas, and competitors.