Core competence, cmpetitive advantage and market analysis : Forging the links
Year: 1997
Type: report
Abstract: Business people are receiving conflicting advice about the routes to competitive advantage. One set of theories says the key to advantage lies in market positioning: looking outside the firm. resource based view exhorts business people to focus on their firms' existing core competences and assets and how these might be expanded: looking inside the company. In this paper we focus on linking the two. We begin by tracing Porter's cost and differentiation drivers back to the underlying assets on which they draw. Core competences are then viewed as catalysts which reduce the time and cost required for a business to expand its asset base in ways which allow it to deliver a more competitive product. role of core competences is inherently dynamic: they help companies build new assets which can enhance their competitive advantage, enable them to meet the needs of changing markets and diversify into new ones. It is then critical to know which types of assets, and hence which core competences, will be most advantageous to a firm in a particular market environment. We show empirically that part of the answer is to be found by analysing differences in the value of customer relationships, channel and process experience assets across different markets. By exarnining these differences, strategists can gain a better understanding of where corporate diversifiers can use their core competences to gain an advantage in competing for new business opportunities against independent start-ups; and where new ventures can succeed despite lack of access to corporate competences. The essential is invisible to the eye A. de Saint-Exupery, Little Prince
Source: Lirias
Authors: Paul Verdin, Peter J. Williamson
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W158335998