Organizational Levels Influencing Competitive Advantage Analysis

This essay explores the achievement of competitive advantage through strategic management, focusing on identifying differential product strategies, building core competencies, acquiring unique technologies, and accumulating intellectual property. It analyzes key organizational levels influencing a firm's competitive advantages, using the resource-based view of the firm as a foundation. The essay discusses the SWOT analysis and Porter's Five Forces model, highlighting their strengths and weaknesses in identifying and sustaining a competitive edge. It also addresses the impact of globalization, digitalization, and other modern factors on organizational design and strategy, emphasizing the need for adaptability and collaboration to achieve long-term success in dynamic markets. The modern organizational design is a major consideration, which influences a firm's long-term strategy, is globalization. The pace of globalization is increasing; firm require finding new opportunities that extend the company's resources or capabilities.

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Business
Name
Institution Affiliation

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Achievement of competitive advantage requires a firm to focus consistently on the identification
of differential product strategies, building or reshaping core competencies, acquiring unique
technologies, and accumulation of intellectual property, all of which can all be harnessed to
make the company successful in a highly competitive marketplace. Identifying what constitutes a
core competence has been a subject of debate in the literature for over 20 years. This problem
has become even more involved with globalization and the growth of the internet, which has
given open access to more competitive, environmental, and technological information. One key
model that was developed in the 1980's is modeled core competencies as unique resources and
capabilities. It was known as the resource-based view of the firm. Therefore, using this model as
a foundation, this research will analyze which key organizational levels influence the
competitive advantage(s) of a firm.
One of the first methodology standards proposed by Albert Humphrey (SWOT Analysis, n.d.)
found the fundamental components of the upper hand. The utilized exceptionally basic ideas and
attempted to recognize in the initial request between the effect of inner and outer components on
an association's capacity to contend. To identify the potential item and business sector
procedures, the SWOT strategy constrained organizations to take a gander at the accompanying
parts of their industry and their firm. They include strengths, attributes of an association that
accomplish a competitive position, weaknesses, characteristics of an organization that is harmful
to a company's focused position; Opportunities, External natural conditions that achieve a
focused area threats, external ecological conditions that could harm an association's competitive
position.

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The objective of a "SWOT" examination is to recognize the key elements that are essential to the
accomplishment of the organization's goals. One of the shortcomings of SWOT analysis is that it
can be utilized to produce a conceptualized rundown of chances instead of an insightful summary
of what is imperative in helping a firm accomplish its objectives. A more contemporary
investigation model by Porter (1979) brought a more prominent profundity of comprehension of
an association's relative focused position inside a given industry, giving analysts a flexible
structure for surveying the impact of the external environment on an organization's capacity to
maintain an upper hand. An itemized description of how these different components cooperate
was examined by Porter (1979) yet condensed here:
One of the valued strategy in the SWOTanalysis is the Supplier Power. It identifies with how
simple it is for suppliers to drive up costs which are driven by the quantity of vendors, the
uniqueness of their item or administration, It also covers on the quality and control they have
over their clients and the expense of changing starting with one supplier than to the next. It
proves an organization power to affect the price to its benefit in the trade.
The complementing strategy is the Buyer Power. It identifies with how simple it is for purchasers
to drive a company's costs down. It is fuelled by the number of customers in the business sector,
the significance of every individual customer, the expense to buyers of changing from one item
and administration to those of another firm.
The other strategy of the SWOT is Competitive Rivalry: This identifies the number and capacity
of industry contenders. On the off chance that a firm has numerous contenders, and they offer
similarly appealing items and administrations, then in all probability, the firm will have little

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power and impact. On the off chance that suppliers and purchasers don't get a decent
arrangement, they will go somewhere else. On the other hand, if nobody else can do what your
firm does, then you have competitive quality than any organization in the trade.
The other strategy is the threat of Substitution. It is identified with the capacity of contenders to
discover new and distinctive methods for imitating an item or administration advertising. If item
or administration substitution is feasible, then this debilitates the competitive force of a firm.
The last technique is the Threat of New Entry. It is related to the capacity of new contenders to
enter the business sector. On the off chance that it costs little in time or cash to get into the
business community and contend successfully, if there are a couple of economies of scale set up,
or if little insurance for the significant advancements, then new contenders can enter a business
sector, debilitating an incumbent's position. Reliable and tough obstructions to section help in
supporting an upper hand.
Watchman's five power model was considered by numerous, to have deficiencies in that it
incorporates both internal and outside variables. The variable permitted a firm to distinguish and
support its wellsprings of upper hand and was excessively static, making it impossible to keep
pace with the more compelling mechanical advancement showed in numerous commercial
venture. Different strengths have gotten to be critical in the comprehension of industry elements.
For example, globalization, digitalization, joint endeavors, associations and de-direction

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(Recklies, n.d.) and have all been referred to as having noteworthy influence in an organization's
capacity to contend. However, due to technological advances and market dynamics many
strategies have been identified. The modern organizational design is a major consideration,
which influences a firm's long-term strategy, is globalization. The pace of globalization is
increasing; firm require finding new opportunities that extend the company's resources or
capabilities. Conversely, most of the companies build their organization basing on the above
traditional method. The strategy works best for the businesses that have a more predictable,
automatic business processes and the roles and responsibility that are clear and well defined. The
model is best used in the organization that has cross-functional teams. For the team to be most
effective, the composed skilled individual possesses a high rank of mutual respect within the
team environment. However, these model breaks down when collaboration is necessary to
achieve common goals. For the strategy to be most effective, the organization should make it a
responsibility of everybody to analyze the market.

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References
Schermerhorn, John R. Exploring Management: In Modules. Princeton: Recording for the Blind
& Dyslexic, 2007. Print..
Strategic Planning. New York: Films Media Group, 2005. Print.