Organisation Resource and Capabilities: Impact on Resources, Capabilities, Strategy and Competitive Advantage

Abstract

This paper looks at the possibilities that sustained competitive advantage can be achieved in organisations through regular evaluation and maintenance of organisational characteristics and values in resources and capabilities to pursue emerging market opportunities, counter threats, maintain market standing and profitability. Organisations must keep building on the existing capabilities and resources, in some circumstances, and such resources needs to be modified or even phased out and replaced in response to ongoing market changes and reviews in the organisation’s strategy.  While casting a watchful eye for opportunities to innovate, developing totally new capabilities for delivering better customer value and out-competing rivals is key. Understanding the criticality of upgrading strategic resources and their deployments is an integral management function. Organisation’s core capabilities are facilitated through acquisition and strategic deployment of resources. Collection of these resources and core capabilities largely indicate how superior an organisation is, in market where competitive power of resource and core capabilities are measured and tested over time. However, the author notes that competitive advantage may not be sustainable if competitors possess comparable resource and capability in the same industry. Organisation's resources and core capabilities are important major features. This article seeks to analyse organisation’s internal resources through diagnosing value chain activity to identify sources of strengths and weaknesses, benchmarking as well as business process management with the view to offering an approach as to how these fundamental features can improve organisation’s effective turnaround towards competitive advantage.