Question

What is competitive advantage? Provide examples of resources and competencies that high-tech firms may possess. Why are resources and competencies especially important for high-tech companies?

Answer 1

Competitive advantage refers to the strategic benefits a company possesses in the market place that gives superiority to the company over the competitors. It is very important for the company to develop competitive advantage to build long term sustainability of the business. For example, a company operating at low price of the product becomes successful to attract the price sensitive customers. So, it acts as a competitive advantage.
With respect to the high tech firms, the innovative technologies, patented design and talented human resource working for the firms as well as the R&D team of the firm are the resources and capabilities that enable the high tech firms to compete in the market place. For example, the high tech company Apple possesses the designs for the handsets, new technologies as well as innovation drive research team that work relentlessly to make the company ahead in the business.
For high tech companies, important resources and capabilities are as follows:
1.   Human resources of the organization
2.   Technological setup that builds environment for work
3.   Patented designs, technologies and inventions
4.   Research infrastructure
Above resources are important because it creates competitive advantage to the company and the company builds superior positioning among the audience. It further helps the company to create profitability and capitalize upon the opportunities arising in the market.