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DIAGNOSING AND BUILDINGCOMPETITIVE ADVANTAGE(CA)             AND      CORE COMPETENCE(CC)  1                     K.CHITRA
HOW DO FIRMS BUILT CA?   Firm utilize strategy for building CA.               -survival and growth of the company   CA a...
TOOLS FOR IDENTIFYING CATwo useful tool for identifying and building CA Benchmarking Value   Chain AnalysisBENCHMARKING ...
TYPES OF BENCHMARKING   INTERNAL BENCHMARKING   FUNCTIONAL BENCHMARKING   COMPETITVE BENCHMARKING   GENERIC BENCHMARKI...
TRAITS OF BENCHMARKING Larger   scope than inter-firm comparison.   Model   for emulation   Identifies and   quantifies...
Value     creation and market-orientation   Capability of smarter product launch   Efficient distribution channel   CR...
“HINDUSTAN UNILEVER AND FORD TAURUS              PROJECT”                                      7
VALUE CHAIN ANALYSIS Vastmatrix of value creating activities superior than the competitor. Better      grasp of strength...
9
VALUE CHAIN DIAGRAM                      10
DIFFERENT ROUTES TO BUILT CA    CA THROUGH LOWER COST                               11
CA THROUGH TECHNOLOGY AND R&D                                12
CA THROUGH BRAND POWER                         13
CA THROUGH ALLIANCES                       14
CREATING ENTRY BARRIERS       Maruti udyog                          15
CA THROUGH WELL TRAINED HUMAN RESOURCES                                          16
CA THROUGH PRODUCT DIFFERENTIATION                                     17
CA THROUGH INNOVATIONSGodrej Nano Chotukool   PROJECT SHAKTHI                                      18
CA THROUGH INTEGRATION                   Uptron                   Colour                Picture Tubes                     ...
CA-A CONSCIOUS AND CONTINUING ENDEAVOUR Competitive Advantage   gets eroded with time. Building   durable CA requires Un...
CORE COMPETENCE            “It is a fundamental, unique and inimitable                       strength of the firm.”   Pro...
EXAMPLES OF CORE COMPETENCE                              22
CRITICAL COMMENTS ON CC Restricts          the number of business the firm can be in      -3M CORE CONCEPT-Sticky Tape D...
DISTINCTION BETWEEN CA AND CC           Competitive Advantage                    Core Competence1.   Does not necessary im...
THANK YOU!!              25
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Core Competence and Competitive Advantage

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Holistic view of Competitive advantage and Core Competence

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Transcript of "Core Competence and Competitive Advantage"

  1. 1. DIAGNOSING AND BUILDINGCOMPETITIVE ADVANTAGE(CA) AND CORE COMPETENCE(CC) 1 K.CHITRA
  2. 2. HOW DO FIRMS BUILT CA? Firm utilize strategy for building CA. -survival and growth of the company CA at Corporate Level as well as Business Level. -one unified support system Strategy uses as well as creates CA. - cumulative strategic actions. 2
  3. 3. TOOLS FOR IDENTIFYING CATwo useful tool for identifying and building CA Benchmarking Value Chain AnalysisBENCHMARKING “The process of comparing the company’s products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance” 3
  4. 4. TYPES OF BENCHMARKING INTERNAL BENCHMARKING FUNCTIONAL BENCHMARKING COMPETITVE BENCHMARKING GENERIC BENCHMARKING 4
  5. 5. TRAITS OF BENCHMARKING Larger scope than inter-firm comparison.  Model for emulation  Identifies and quantifies the performance gap. 3 components for relative performance  Products and services  Business processes and procedures.  People 5
  6. 6. Value creation and market-orientation Capability of smarter product launch Efficient distribution channel CRM Effective management of marketing information Ability to price optimally. 6
  7. 7. “HINDUSTAN UNILEVER AND FORD TAURUS PROJECT” 7
  8. 8. VALUE CHAIN ANALYSIS Vastmatrix of value creating activities superior than the competitor. Better grasp of strength and weaknesses of the competitor. In-depth comparison of value chain enhances firm to identify and built competitive advantage.  Eg - EASTMAN KODAK 8
  9. 9. 9
  10. 10. VALUE CHAIN DIAGRAM 10
  11. 11. DIFFERENT ROUTES TO BUILT CA CA THROUGH LOWER COST 11
  12. 12. CA THROUGH TECHNOLOGY AND R&D 12
  13. 13. CA THROUGH BRAND POWER 13
  14. 14. CA THROUGH ALLIANCES 14
  15. 15. CREATING ENTRY BARRIERS Maruti udyog 15
  16. 16. CA THROUGH WELL TRAINED HUMAN RESOURCES 16
  17. 17. CA THROUGH PRODUCT DIFFERENTIATION 17
  18. 18. CA THROUGH INNOVATIONSGodrej Nano Chotukool PROJECT SHAKTHI 18
  19. 19. CA THROUGH INTEGRATION Uptron Colour Picture Tubes Unit 19
  20. 20. CA-A CONSCIOUS AND CONTINUING ENDEAVOUR Competitive Advantage gets eroded with time. Building durable CA requires Unique Competence . Eg -Dell’s CA in Distribution 20
  21. 21. CORE COMPETENCE “It is a fundamental, unique and inimitable strength of the firm.” Provides the firm, the access to a variety of products/markets. Contributes to customer benefits in the products. Cannot be easily imitated easily by competitors. Competence at the root technology gaining lasting advantage and fresh value enhancement. 21
  22. 22. EXAMPLES OF CORE COMPETENCE 22
  23. 23. CRITICAL COMMENTS ON CC Restricts the number of business the firm can be in -3M CORE CONCEPT-Sticky Tape Diversificationmakes a dent in the firm’s CC -Tatas and HUL- Lakme and Tomco (Cosmetics) 23
  24. 24. DISTINCTION BETWEEN CA AND CC Competitive Advantage Core Competence1. Does not necessary imply CC. Imply a number of CA.2. Not a Sure success formula on a Sure success formula on a long run. long run.3. Provides Temporary Competitive Provides Lasting Competitive Superiority. Superiority.4. Grows from a functional strength. Grows from the roots of Businesses and products.5. CA in a given business or product. CC excels in a variety of businesses /products.6. Can be easily imitated and Inimitable preserve of the firm and competitors catch up fast. difficult to catch up. 247. Not unique to the firm on the long Unique and fundamental to a firm. run.
  25. 25. THANK YOU!! 25

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