Strategic Capabilities

2891 Words Feb 19th, 2012 12 Pages
Strategic Capabilities

Strategy is all about planning the next moves, making decisions - how and where to move forward from the current position. In the past, strategy was associated mainly with the military sector, the top chiefs of command were making tactical choices in order to defeat their rivals and achieve victory. In the business sector the purpose of strategy is in principle the same, planning and building a road or path that will lead us to where ever it is we want to be in the future and to overcome all obstacles that might lay on the way. However, there is a difference between those two sectors, soldiers need only to follow orders without seeing or understanding the big picture, while in the
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The way they can reach superiority over others could only aspire to reach can be describe in the Value, Rarity, Inimitability and Non-substitutability of their product or service (known as VRIN).
Strategic Capabilities Methodology.
In order to improve and understand organization strategic capabilities, the organization can learn from others (Benchmarking). That’s mean, looking and analyzing competitors who manage to achieve success (or failure), compared with the current status of the organization, will produce information that can help the organization to learn to evolve and develop. This information, for example, can indicate industry trends – does a certain product or service contain potential or not, what does other do well that we don’t. In addition, this information can point out different disadvantages in our choices, actions and activities.
A deeper specific internal analysis regarding the organization activities can emphasize the organization 's competitive advantage with a focus on the organization 's value – which Michael Porter defined as the value chain. There are primary activities
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