Competitive Advantage & Competency

By R. Paul Godwin

What is Competitive Advantage…?Analyzing Competitors.Strategies in Competitive Advantage.What is Competency…?Types in Competency.Competency Clusters.Benifits of Competency.Conclusion.

Contents……… .

It is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

What is Competitive advantage..?

Analyzing Competitors

Cost leadership Advantage

Differentiation Advantage.

Focus on Few Market.

Customer Intimacy.

Product Leadership.

Strategies On Competitive Advantage

The cost Advantage is that the Firm competities the other Firms in the industryby lowering the price of the Product.

Eg; Discounts.

Cost Advantage .

In this the company concentrates on creating a highly differentiated product line and marketing program so that it comes accross as the CLASS LEADER in the industry.Eg:Mercedes Benz.

Differntiation Advantage .

Here the company focuses its effort on serving a few market segments well raether than going after whole market.Eg; Hohner owns a stunning 85% of Harmonica(music) Market.

Focus on Few Market .

Its the company targets the customers precisely, and provides products and services exactly the needs of the customers.

Eg:Raymonds Suitings.

Customer intimacy .

The company provides superior value by offering a continous stream of leading-edge products or services.It aims to make its own and competiting products obsolete.Eg:Bajaj(pulsar 150-180-200-220).

Product Leadership .

Competencies are the human capabilities and work -related behaviours that provide a compatitive advantage to an organisation.

What is Competency...? .

Types in Competency

Information and understanding needed to fulfill the responsibilities

Acquired ability or experience needed to fulfill the responsibilities

Way of thinking or behaving needed to fulfill the responsibilities

Natural ability that prepares the person to fulfill the responsibilitiesAptitudes

Attitudes

Skills

Knowledge

COMPETENCY CLUSTERS .

Business Knowledge

Proactivity

Collaboration

Customer Focus

Leadership

Innovation

Conceptual Thinking

Understands the Industry.

Financial decision making.

Knowledge of company products.

Overview of business.

Business knowledge .

Anticipates and forecasts customer requirements.

Defines quality standards for customer service.

Develops partnership with the customer.

Enhances long term relationship with customer.

Creates new solutions to meet customer needs.

Customer Focus .

Seizing opportunities as they arise.

Handling crises swiftly and effectively.

Exceeding the bounds of one’s formal authority.

Proactivity .

Leadership .

Sets out clear standards and goals

Motivates others to achieve and maintain high standards

Works to reach consensus and agreement wherever possible.

Welcomes constructive criticism.

Identifies and shares success stories.

Adapts and applies different new approaches to situations

Modifies standard approaches for more effective outcomes

Develops original approaches to non-routine situations

Encourages innovation and creativity in others , supports new ideas

Innovation .

Builds effectively team within a function/ country.Encourages and supports colleagues to achieve goals.

Develops information-sharing networks.

Creates team effectiveness using people skills.

Collaboration .

Develops concepts/ patterns perceived in a set of facts.

Rapidly identifies key issues/ actions in a complex situation.

Seeing connections or patterns.

Using vigorous, original analogies or metaphors.

Conceptual Thinking .

Benifits of Competency frame work

Career Pathing

Potential Assessment

Reward Management

Recruitment & Selection

Succession Planning

Training & Development

Job Design & Grading

Performance Management

Competative Advantage is that makes a firm to withstand in the market for a longrun. Competitive advantage is achieved only when the company has the effective competency.

Conclusion