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Competitive Advantage and Management Essay
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Competitive advantage may be described as the development of an exceptional position of an organization relative to its competitors in consequence of its decisions concerning "the product-market scope of its operations and its pattern of resource allocations" (Gomes, 1988). It is a general assumption that such a position will make it possible for the organization to receive an elevated outcome on investment regardless of competitive stress and demands (Gomes, 1988).
Activities are described as the indispensable components of competitive advantage. If an organization implements a distinctive strategic positioning by competing on the base of elasticity, cost, excellence, momentum, multiplicity and selection and so on, it can definitely have a competitive advantage over the other organizations. The meaning of strategic positioning here is that an organization either performs different activities as compared to its opponents or performs parallel activities in dissimilar manners (Lowson, 2002, p. 58).
Competitive advantage, thus, initiates from the unique competencies of an organization. By and large, a distinctive capability involves additional factors than just the aptitude and potential of the organization. In its place, the term characterizes "the unique values, resource deployment patterns, specific knowledge and technologies, critical functional skills, and methods of operation" that allows the organization to perform the various activities in differential capabilities. It can, therefore, be said that the distinct competencies are the building blocks of a competitive advantage especially when they are the main factors of accomplishment in an industry (Gomes, 1988).
As far as the managers are concerned, it is important for them to understand the environment and nature of their organization's competitive advantage. This understanding is important because it would provide them the framework for determining the services and products they could offer to their respective organizations. When a manager is aware of the changes in the industrial setup, he/she becomes able to modify and transform their service offerings with time because they also know the changing demands…
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References
Gomes, G.M. (1988). Excess Earnings, Competitive Advantage and Goodwill Value. Journal of Small Business Management, 26(3), 22+. Retrieved June 10, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=5000109734
Lowson, R.H. (2002). Strategic Operations Management: The New Competitive Advantage. London: Routledge. Retrieved June 10, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=102807910
Schachter, D. (2005, April). Competitive Advantage and Information Services. Information Outlook, 9, 12+. Retrieved June 10, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=5037252462
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