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101 Competition

In: Business and Management

Submitted By kashieb1
Words 291
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“Competition is now a war of movement on which success depends on anticipation of market trends and quick response to changing customer needs....Therefore, the essence of strategy is not the structure of companies products and markets but the dynamics of it's behavior.” (Stalk, Evans and Schulman 1992, Harvard Business Review.)
Explain this statement, using a company of your choice, in terms of what the above authors termed 'capability based competition', Use the 'capability based competition' concept to identify how the company of your choice can either maintain and grow their successfulness or become successful in the long term.

The market place is an ever changing place. Companies have to be quick on their feet and innovative to maintain and keep up with the shifting market trends. They must be able to cater for customer needs, foresee and predict upcoming changes in customer wants and do all this in the long run rather than the short term. This is why it is important to put emphasis on the companies manners and conduct rather than the make-up of companies products and services. In essence that is what Stalk, Evans and Schulman are trying to convey when they say “Competition is now a war of movement on which success depends on anticipation of market trends and quick response to changing customer trends....Therefore, the essence of strategy is not the structure of companies products and markets but the dynamics of its behavior.” The distinctive competence of a firm refers to a set of activities or capabilities that a company is able to perform better than its competitors and which gives it an advantage over them. In other words, distinctive capabilities are something a company should posses that their rivals...

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