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How can business
strategies add value? What distinguishes the successful firm is the
fundamental question in business strategy, and one the most senior
managers consistently ask themselves.
Companies with
distinctive capabilities have attributes which others cannot replicate,
and which others cannot replicate even after they realize the benefit they
offer to the company which originally possesses them.
In "Foundations of
Corporate Success", John Kay argues that outstanding businesses derive
their strength from a distinctive structure of relationships with
employees, customers, and suppliers. He explains why continuity and
stability in these relationships is essential for a flexible and
co-operative response to change.
John Kay says there
are three distinctive capabilities a company can have to create
added value and achieve competitive advantage through relationships:
-
architecture (a structure of
relational contacts within or around the organization with employees and
with customers and suppliers)
-
reputation (built up through
customer's own experience, quality signals, demonstrations and free
trails, warranty, guarantee, word of mouth spreading, association with
other brands, staking the reputation once it is established)
-
innovation
(provided the
innovation is translated to competitive advantage successfully)
Compare also:
Value Disciplines |
Porter |
Resource-Based View
|
Parenting Styles |
Parenting Advantage
|
BCG Matrix
|
Greiner
|
Mintzberg
|
3C's |
M&A
More management models
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