Select a Fortune 500 company of your choice (one that is not named in Lecture 4)

Question

Select a Fortune 500 company of your choice (one that is not named in Lecture 4). Analyze three key organizational capabilities that give the company a competitive advantage. What is it about these capabilities that give the company its competitive advantage? Focus on the three best organizational capabilities demonstrated by the company by providing specific and precise facts you uncovered in your research. Online publications such as BusinessWeek and The Economist, and assorted websites, will help you gather these facts.

Explanation / Answer

Apple

Two of the most striking things about Apple and Sony are how radically different their products were and how consistently innovative they have been. Innovation sometimes appears to be the result of a sudden flash of inspiration, like Morita’s idea of making a product of the Walkman, but it invariably builds on knowledge and abilities developed over a long period.

Few companies are able to build a lasting success on the basis of a single innovation – typically these are imitated or improved upon by others. Most technology pioneers never reap the rewards of their inventions – they are quickly by-passed by others with more capabilities and assets. In industries where product innovation is critical, the winners are those who can produce a steady flow of them. This requires rather more than a few brilliant flashes.

Apple and Sony at their best were organizations optimised for innovation. They did not just depend on the genius of a Wozniak or an Ibuka, vital though they were. Innovativeness and engineering excellence became organizational capabilities. They were engrained in the DNA of these companies.

three key organizational capabilities that give the company a competitive advantage.are :

Flexibility and Responsiveness

The responsiveness of an organization is its ability to change in response to customer demand. Knowledge and skilled employees are organizational capabilities that provide a company with the ability to respond to customer demands and remain flexible to changes in the business environment.

Knowledgeable Workforce

The skills and knowledge of a company's workforce allow the organization to direct those skills to achieve the business's goals. Training programs, education assistance and effective recruiting and hiring programs are organizational capabilities that ensure a knowledgeable workforce. To maintain the capability, companies should ensure the workforce has the resources available to improve continuously. Managing a talented workforce is an organizational capability that provides a competitive advantage in the marketplace.

Improved Customer Relationships

Good customer relationships ensure the continued growth and competitiveness in the market. The relationship between the organization and its customers is an organizational capability that affects sales, reputation and loyalty for future business. Maintaining existing relationships with customers as well as developing new ones ensures the company will grow and thrive in the future. A lean manufacturing environment is an organizational capability that focuses on the voice of the customer and meeting demand. This organizational capability improves the relationship with the customer for the business.

The Apple II redefined the market for personal computers. Nobody else at the time could produce anything remotely as good for those early adopter customers. Apple had assembled such an array of talent, so dedicated to developing insanely great products, that for a while no competitor could touch them. One of its distinctive capabilities, which never entirely deserted it, was the ability to innovate, to produce yet more beautifully designed, easy-to-use products. Even during the darkest days, it had enormous competitive advantage in markets like design, publishing and education, and amongst its dedicated following of idiosyncratic individuals, prepared to pay a premium for great products. Since its renaissance it has been universally acclaimed as the most innovative company in the world.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.