It has been widely acknowledged that technology is an essential resource that can be converted into a capability and competitive advantage for firms and nations.
It highlights the need for clearer conceptualizations and development of measures of dynamic capabilities, environmental conditions that underpin the development of dynamic capabilities within the firm and research into the much debated relationship between dynamic capabilities and competitive advantage and organizational performance.
The first component of this framework is the analysis of customers, company and competition (the three Cs) to understand customer needs, company capabilities and competitive strength and weaknesses.
Which to pursue depends on existing capabilities and competitive direction — but companies should avoid trying to do both.
When American Express decided to invest heavily in a rewards program, however, it considered not only customer demand but also its own capabilities and competitive advantages.
"GSK's recognition of our skilled workforce, world-leading scientific capabilities and competitive tax environment is further proof that there really is no place better in Europe to grow a business," he said.
2. For seminal views on the relationship between capabilities and competitive advantage, see B. Wernerfelt, "A Resource-Based View of the Firm," Strategic Management Journal 5 (April June 1984): 171 180, and M.A. Peteraf, "The Cornerstones of Competitive Advantage: A Resource-Based View," Strategic Management Journal 14 (March 1993): 179 191.
Fig. 2 The relationship between resources, capabilities and competitive advantage.
Figure 2 illustrates the relationship between resources, capabilities and competitive advantage used to analyse the marketing strategies in this study.
This gives them valuable insights on KPIs, team capabilities and competitive position, for example, across the opportunity set.
