Question

Clarets Inc. has recently been losing competitive advantage over its closest rivals. Senior management has historically relied upon a superior reward system to gain competitive advantage, but that no longer appears to be sustaining. Which internal analytical tool could they use to help find out if this may be the case, and to also uncover what they could be leveraging instead?

Answer 1

Core competencies analysis can help the company in order to finding out the core competencies of the business and it will help in gaining and competitive advantage over its competitors and the business should be try to find out those segments and those activities which will be providing it with optimum benefit in relation to gaining of core competitiveness which will be help in maximizing its benefits upon the competitors.

Company can identify the core competitiveness which can help in managing with its operation in an efficient manner by following-

A. it should be looking that the activity of the competence is providing to a wide variety of markets

B. it should always try to look into the competence that it is adding the significant value to the organisation and it is generating a higher amount of sales and revenues along with profits

C. This competence of the organisation must be non substitutable and it cannot be substituted and imitated by other competitors so it will be unique in nature and it will help the business in gaining the competitive advantage.