英语论文网

nsistently produce product/delivery systems with attributes which correspond to the key buying criteria for the majority of customers in their targeted market…” However, this definition is limited in the sense that it takes into neither account of core competencies nor the resources to be used to produce products or services.

For this reason, Asker (1989) argues that core competencies are the basis of competition. Core competencies enable organizations to gain sustainable competitive advantage in the long term, unless organizations have differentiation competencies, such as technology unique to the market.

Sustainable competitive advantage, therefore, is inherent in the integration of both external and internal productivity by creating value for the customers. Firms that want to be sustainable in the long run need to lower their internal costs and improve competitiveness through value creation and optimization strategies.

Core Competencies

Core competencies, as discussed earlier, are a source of competitive advantage. In fact, they provide the framework for sustainable competitive advantage. Determining core competencies requires the organization to differentiate the various competencies through competence grid (see Appendix 5). The different types of competencies should be categorized as core or support competencies. When differentiating competencies, firms need to distinguish them according to the following:

a. Firm specific versus public domain - this refers to the firm specific tangible and intangible resources that affect the firm’s sustainability.

b. Human versus technological - this refers to the pool of human skills and the technological advantage the company has over competitors.

c. Product, process and administrative competencies - this refers tithe production methods adopted whether it is product based, or process based.

Core competencies can therefore, be distinguished by locating in the competence grid the competencies that are firm specific. Core competencies have low impact on external performance yet resources such as financial, research, management and technology etc. do help the organization to optimize opportunities. At the same time, it is critical for firms to optimize products, processes and administrative activities by exploiting both human and technological competence. Moreover, core competencies are important for providing the desired sustainable competitive advantage that firms desire to compete in the short and long run (Drejer 2002; Prahalad 1993).

External Analysis Models:

Having explained the theoretical framework and importance of strategic management in terms of sustainable competitive advantage, it is now imperative to discuss the various models presented by the theorists.

Porter's Five Forces

This is perhaps one of the most important models used by academicians and managers alike when dealing with strategic management. The Five Forces Model has been introduced by Porter in his book Competitive Advan本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。