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What Distinguishes the Successful Firm

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Distinctive Capabilities

Summary of Kay's Distinctive Capabilities. Abstract


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:

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Compare also: Value Disciplines  |  Porter  |  Resource-Based View  |  Parenting Styles  |  Parenting Advantage  |  BCG Matrix  |  Greiner  |  Mintzberg  |  3C's  |  M&A

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