It is always a continuous process to fine-tune business capability and discover the business strength that can be transformed into a core capability if it aligns with the strategic direction.
A company's strengths can include a strong brand, core competency, specialized knowledge, proprietary technology, and differentiated goods and services. It is generally in a company's best interest to capitalize on its strengths and focus on areas where it has a significant industry advantage.
Strategies for Competitive Advantage
Value Innovation: Value innovation involves decisions that align with theoretical frameworks such as the eliminate-reduce-raise-create (ERRC) grid.
-Eliminate factors that are no longer relevant or cost-effective.
-Reduce excess or costly factors that are not essential to adding customer value.
-Raise key factors that add unique or underestimated value to products or services.
-Create new features to generate fresh demand from existing and new customers.
Blue Ocean Strategy: Some businesses achieve dominance by avoiding direct competition and creating new, uncontested market space by recombining existing demand in novel ways.
Vertical Integration: Vertical integration of a company's supply chain allows for greater control over costs, processes, and quality, and can help establish global economies of scale.
Product Innovation: Consistent experimentation with new product offerings and flavors. The balanced innovation management portfolio should include all different flavors of innovation
The organization's long-term success is based on a set of core competencies. Thus, it is always a continuous process to fine-tune business capability and discover the business strength that can be transformed into a core capability if it aligns with the strategic direction.
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