英语论文网

ompetencies of organizations. Resources such as people, machinery, raw material, knowledge, brand image and patents etc. are the basic elements of the firm that it organizes and controls to produce goods and services. Firm’s ability to identify specific set of resources can be used to create competitive advantage (qt. Lawson 2002). Sustainability is also inherent in the ease with which firms utilize or substitute resources or use them in combination to achieve competencies and capabilities(Prahalad and Hamel 1990 qt. Lawson 2002).

In this context “competencies refer to the fundamental knowledge owned by the firm such as knowledge, people skills, experience, innovation, unique information etc.” These elements help organization to become distinct from competitors, whether in functional areas or in the market.

The basic premise posit by resource-based theorists is to focus on firm’s individual resources, competencies and capabilities when devising strategies to compete within the industry. Sustainable competitive advantage, in turn, is achievable when the organization exploits these elements. The only limitation in this approach is that the organization is too focussed on its internal resources, and its organization, that it tends to neglect the market opportunities and trends.

Sustainable Competitive Advantage

The latest school of thoughts, according to Drejer (2002), does not follow any one specific school of thoughts. Instead, the new approach to strategic management is based on the competitive advantage through positional advantage as well as through managing their assets and resources efficiently. The bottom-line is that core competencies for these firms are to plan production of goods at the least cost with superior quality programs, yet create value for the customers.

Creating an overall competitive advantage for the modern firm is through not only external factors such as positional advantage, product uniqueness and value to customers, or internal factors such as efficient utilization of resources and asset management, but a combination of the two.

However, according to Drejer (2002), there is a third element, which plays a critical role in competitive advantage. Theorists such as Abbegglen & Stalk (1985 qt. Drejer 2002) argue that firms are also responsible for the economic environment and the society in which they operate. This leads to the concept of stakeholders. Competitive advantage is also dependent on the shareholder and the stakeholder’s value. Sustainable competitive advantage is inherent in resolving the problem of sustaining the economic framework by creating value to the customers and society in the short and long run (Rappaport 1992 qt.Drejer 2002).

Managers of successful organizations realize that to develop sustainable competitive advantage they need to incorporate values for the customers as well as those responsible for running the company. Elements like corporate social responsibility, employee well-being, philanthropy and environmental protection affect productivity.

According to Hall (1992) sustainable competitive advantage is defined as when companies 'co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。