Business Strategy Essay Example | Topics and Well Written Essays - 3000 words - 1

Business Strategy - Essay Example This is more important in the present day business scenario in which business organizations are breaching geographical boundaries in an attempt to capture a share of market. This calls for the need to ensure greater competency and efficiency in their business operations. Hence is important not only to generate a brand image but also to create competitive advantage in the present competitive market. The business strategy is driven by certain significant factors. One major influential factor is the competence of the enterprise to drive the business strategy. The ultimate goal of the organisations is to identify one exclusive core competence which can help them to differentiate from the competition. However, this is not easy to do as the evaluation of own capabilities may not be so effortless; it demands honest assessment with an appropriate understanding of the customer requirements. Favourable business strategies are those that are evolved by using the capabilities of the firm to addr ess the consumer requirements in a way leading to sustainable competitive advantage. The competitive advantage is required to be addressed logically by a careful analysis of the business processes of the organization. Any business strategy should define the foundation of competition, the stage for changes to happen and the way the competitive strategies would be built upon this changing business environment. The aspect of sustainable competitive advantage has been a matter of debate among the strategists and management thinkers alike. When one thinks back in the 1980s, the top executives were judged on their ability to reorganize, and reform their corporations. Then in the 1990s, they would be assessed on their ability to identify, encourage and take advantage of the core competencies promoting the organisational growth (Prahalad & Hamel, 1990, p.1-2). However, with the changing business environment, the management must re-evaluate the core competencies of the organisation to fetch success in the long run with a sustainable growth rate. In short run, an organisation’s competitiveness relates to the present performance of the company’s products and services. However, in long run, the competitiveness would be derived from the ability to develop with cost effectiveness and rapid pace using the core competencies initiating introduction of wide range of products. A company can have various sources of competitiveness including human resource, operational processes, management ability and technology. In most of the cases, the key sources of competitive advantages are found in the ability of the organisation’s management to consolidate the wide spread technologies and organisational production skills into the firm competencies which would allow the individual business organizations to adapt successfully with the turbulence in the business markets. This makes it essential for management strategists to rethink their claim regarding the inability to establish the core competencies. It may be tough for the large corporations to build up one core competency, but that may not impossible given that the core competencies can be established in the individual business units. The business units are required to be strongly established with nourishment, sustenance and stability in the core competence. Core competency is a highly specific term and is widely different among different organization depending on their business process. The core