Strategic Management Report: Core Competencies and Advantages

This report provides a detailed analysis of strategic management, focusing on the concepts of strategic capabilities, core competencies, and competitive advantage. It explores how organizations can leverage these elements to achieve a sustainable competitive edge in the market. The report defi...Read More

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

1STRATEGIC MANAGEMENT
Abstract
The main target of the corporate must require attempting the different strategies in order to
accomplish the different goals as to gain competitive advantage in an effective manner. The
significant kind of ranges in the orinciple of strategic management is core competencies along
with capabilities and the correlation of the same in the enterprise. Furthermore, the CEO needs to
illustrate and consume different concepts in process of strategic management as to sustain and
develop competitive spot of company. The essay helped in analyzing significant ranges that will
help in guiding corporate for effectiveness in the long run.

2STRATEGIC MANAGEMENT
Introduction
The assignment helps in analyzing the different concepts of the strategic capabilities,
competitive advantage and the core competencies that are used in different organizations. The
main motive of the different kind of businesses is to adopt different kind of unique kind of
capabilities in such a manner that they acquire competitive advantage, as this will help them in
persisting along with succeeding in the current market area. There are different terms such as
capability and competency that can be used in different organizations. The identification and
description of such concepts is a dynamic aspect in the theory of strategic management.
The main aim and purpose of the report is to identify the different concepts related to
strategic capabilities, competitive advantage and core competencies. The differences of such
concepts will be correlated and evaluated in an effective manner. The VRIO model will be
discussed in relation to a case study based on Grab Services that is one of the competitors of
Uber. The essay will help in implementing and analyzing the different strategies concepts along
with the analysis of the theories used by the managers and CEOs of the organizations in
sustaining a competitive position in an effective manner.
Concepts and defining differentiations and correlations
Strategic Management is defined as the sustaining and increasing the competitive
advantage for the different corporate firms. The different capabilities of the organization are
converted into the source of competitive advantage and the different core competencies of the
firm in an effective manner. The strategic capabilities are defined as the set of different skills that
are complex in nature along with different techniques and processes that helps in permitting to

3STRATEGIC MANAGEMENT
maintain such kind of events along with the performances of the employees (Bromiley et al.,
2015). The practical knowledge and organizational capabilities are the different fundamental
kind of factors that are estimated in the form of the globalization along with organizational
outcomes and innovation. These kind of unique appearances help in growth of organizations that
will help in contributing towards the future growth of the organizations and these help in acting
as the instruments for evaluating the competition between different kinds of firms in the market
(Mooney, 2001).
The different strategic core competencies help in creating successful implementation
along with providing guide in different kind of methods for gaining the superior approach. It
includes the authorizing the different corporate in redistributing the profits to achieve the
purposes that is categorized in nature. The proper and continuous development in different
entries and income streams help in achieving the different purposes and help in continuous
development to generate resources in an effectual manner.
There are different kinds of organizations such as Apple wherein the potentiality of
designing their different mobile devices help them in attracting huge number of individuals in the
market (Mooney, 2001). The quick delivery offered by Zara and Netflix help them in meeting
the requirements of the customers in an effective manner. Furthermore, it has been seen that the
concept of competitive advantage, the company needs to choose a prime location as to become
effective in nature. The strategic competitiveness has been derived from different concerns that
are strategic in nature that includes uniqueness of the brand, scope of the corporate along with
their performances, different kind of beneficial approaches towards the different consumers
(Frynas & Mellahi, 2015).

4STRATEGIC MANAGEMENT
The perceiving of differentiation and correlation is the fundamental part of the entire
study by acknowledging the different concepts in an effective manner (Frynas & Mellahi, 2015).
Regarding the different correlation of such concepts, the different strategic capabilities of the
organizations are generated from the different kind of methodology of the different core
competencies wherein the strategies and capabilities of the firm are converted to the source of
competitive advantage. There are different scholars who have narrated the different
competencies as to accomplish the competitive advantage. Furthermore, the competitive
advantage is the entire evaluation of the score competencies of the company along with the
different capabilities. The scholars have claimed that it was necessary in nature to assess the
different concepts, as this will define the sources of company to gain competitive advantage.
However, previously it has been stated that there were different academicians utilized the
competency and capability without changing the meaning in a major sense. Furthermore,
according to Chang, Kogut & Yang, (2016), it was seen that the researchers seized those in
different kind of situations, wherein the concepts used are individual in nature; however, they are
balanced. Furthermore, it was seen that strategic core competency helps in underlining the
processing and technical capability in certain circumstances along with analysis of the
consequences that are significant in nature. It helps in suggesting that the different organization
with a capacity does not refer to the core competency of the ability and when the company is in
charge of different outcomes common in nature, the capacity becomes the core competency in
different organizations.

5STRATEGIC MANAGEMENT
Concepts in process of strategic management
There are different kinds of firms that are settling the strategy observation as the specific
process that is including scope that is extensive in nature. This helps in identifying and
increasing the core capabilities that the company to create different unique stages to provide
value to the customers and stakeholders. Furthermore, it was seen that there were no such
strategic plan created, it has been noticed that in such firms the accomplishment of the goals
along with objectives is not conceivable in nature. The entire process of strategic management is
the process wherein the different executives realize and reflect the strategy that will arise as the
constant competitive advantage. Furthermore, the entire method of strategic management refers
to the describing the strategy of the firms (Stalk, Evans & Shulman, 1991). The entire process of
strategic management comprises of four stages that include designing of the strategy,
environmental examining, and achievement of the strategy and assessment of the strategy.
The environmental scanning is defined as the process of collecting, subsidizing and
researching the information to generate resolutions that is strategic in nature. It helps in
benefitting to assess the internal and external effects that influence the company. Furthermore, it
has been seen that implementation of environmental examination progression, the entire
management of the company needs to evaluate the same on the constant evidence along with
effort to increase it effectively. Therefore, the different strategic competencies and core
competencies are the different concepts that suits as the part of the examination that is internal in
nature and they must be related to the internal resources of the company as well (Stalk, Evans &
Shulman, 1991).
The internal examination of the company is the progression of determining the strengths
and the weaknesses that are required for creating strategic choices that is suitable in nature. It

6STRATEGIC MANAGEMENT
helps in delivering the foundation for advancing the different kind of options that is strategic in
nature to increase the entire competitive advantage in an effective manner. The entire duty of the
organizational leadership is modeling different kind of strategies along with pushing them
towards accomplishment.
Furthermore, it has been seen that in order to maintain proper and accurate competitive
advantage in the company, the Chief Executive Officers of the company needs to operate the
concept of the core capabilities and core competencies as the main source for gaining strategic
competitive advantage that includes the innovation, leadership and making relationships.
Furthermore, the CEOs of the companies may need to operate the different consequences of the
internal kind of examination, as this will help in providing reflection towards the existing
strategies and objectives of the company along with mission and vision to maintain competitive
advantage effectively.
Internal Analysis by VRIO model
Chang, Kogut & Yang, (2016) argued that the different uncommon, unique and variable
capabilities of the company may help in authorizing corporate as to gain the competitive
advantage. In order to gain the competitive advantage, the different corporate need to exploit
number of different approaches as to examine internal environment by analysis of VRIO model,
value chain along with BCG matrix (Cardeal & Antonio, 2012). Furthermore, the external
environment analysis is done by conducting Porter’s five forces and PEST analysis.
VRIO is the instrument that helped in examining internal capabilities and sources as this
will actualize that may provide competitive advantage source. Bartlett & Beamish, (2018)
commented that these are the resources that are unique, uncommon and non-interchangeable and

7STRATEGIC MANAGEMENT
this respective model exists for the four kind of questions that includes wherein asset is
uncommon, precious and valuable to copy and it is the duty of company to take value of such
sources. When the competency does not differ from each of these, this will help in carrying
competitive advantage for corporate (Mooney, 2001). For instance- VRIO model of Google is
the perfect analysis of operative board that did not have any such differences from the desires of
VRIO model.
Google help in utilizing the information of employees to achieve the different kind of
information and hire team members (Stalk, Evans & Shulman, 1991). This kind of capacity helps
in choosing appropriate solutions for recruiting individuals and consumes their abilities
effectively. Furthermore, the capability is uncommon wherein the corporate can exploit data that
is based on workers authority and this can be expensive in nature as the software program is
overpriced and this kind of skills make the information based choice in the future as well
(Chang, Kogut & Yang, 2016).
Case Study (GRAB Company)
Grab Taxi is Singapore based technology that helps in offering ride-hailing and logistic
services through their app in Southeast Asian that includes Malaysia, Vietnam, and Philippines
along with Singapore. Currently, the respective company is serving in more than 156 cities and
they came into operation in the year 2012 in the month of June ("Ride Hailing Platform: Car,
Taxi & Carpool | Grab", 2018). The corporate is headquartered in Singapore and the CEO of the
company is Anthony Tan as he is the co-founder of the company. The company faced few issues
previously wherein there were no such kind of GPS rating and feedback system available on the

8STRATEGIC MANAGEMENT
application. However, the company did not create program based on cloud system as this helped
in gaining competitive advantage (Bartlett & Beamish, 2018).
Furthermore, the company tried to understand the different requirements along with the
convenience required by the consumers. The core competency of the company is to recruit the
drivers for the company without directly hiring them and the company preferred staffing of such
candidates (Galliers & Leidner, 2014). There are different competitors of Grab that includes
Uber and Ola, however the services provided by Grab are unique and provide logistic services in
an effective manner. Therefore, it can be concluded that services provided by Grab has been
effectively implemented and these kind of core capabilities and competencies help in
accomplishing the sustainable competitive advantage in an effective manner (Hill et al., 2014).
Conclusion and Implications
The core competencies and capabilities of corporate are the attention in formulation of
the strategy that helps in guiding to maintain proper and accurate competitive advantage. The
capability of the company turns into competitive advantage and the competencies relate to
different kind of resources that will be advantageous for the company.
The entire essay helped in understanding the evaluation of capacities and capabilities of
the corporate to accomplish the strategic management and gain competitive advantage. The
proper examination of internal and external environment of the company is essential that helped
in determining the strengths and weaknesses that will help in defining and assessing the
strategies.

9STRATEGIC MANAGEMENT
There are different kinds of firms that effectively accomplish the different goals wherein
Grab Taxi is one of the companies. Grab uses the different kind of information and quickness of
the delivery system that will help in analyzing and gaining competitive advantage. The main
implication of the essay is to discover and describe the strategic capabilities along with the core
competencies.

10STRATEGIC MANAGEMENT
References
Bartlett, C. A., & Beamish, P. W. (2018). Transnational management. Cambridge University
Press.
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk management:
Review, critique, and research directions. Long range planning, 48(4), 265-276.
Cardeal, N., & Antonio, N. S. (2012). Valuable, rare, inimitable resources and organization
(VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to
competitive advantage. Cardeal, N., António, (2012), 10159-10170.
Chang, S., Kogut, B., & Yang, J. S. (2016). Global diversification discount and its discontents: A
bit of self‐selection makes a world of difference. Strategic Management Journal, 37(11),
2254-2274.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Galliers, R. D., & Leidner, D. E. (Eds.). (2014). Strategic information management: challenges
and strategies in managing information systems. Routledge.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Mooney, A. (2007). Core Competence, Distinctive Competence, and Competitive Advantage:
What Is the Difference. Journal of Education for Business, 83(2), 110.

11STRATEGIC MANAGEMENT
Ride Hailing Platform: Car, Taxi & Carpool | Grab. (2018). Grab PH. Retrieved 9 March 2018,
from https://www.grab.com/ph/
Stalk, G., Evans, P., & Shulman, L. E. (1991). Competing on capabilities: the new rules of
corporate strategy. Harvard business review, 70(2), 57-69.