Establishing organizational capability - Marketing Strategy

Companies will not be capable of supplying every attractive segment that is identified. Having analysed a segment’s market attractiveness it is then necessary to compare the needs of that group of consumers with the organization’s capabilities. An organization’s strengths can be judged by analysing its assets and competencies. Organizational capabilities will be made up of specific assets and competencies. The key areas to identify are where the organization is superior to the competition. A full discussion on identifying corporate assets and competencies is undertaken.

In summary, assets are organizational attributes,tangible or intangible, that can be utilized to gain advantages in the market(see Figure below). Obviously assets should not be viewed in isolation – it is also important to establish any competencies that give the organization advantages.The value chain is a useful framework to use to identify these areas of unique competence (see Figure above).

Examples of assets that create a competitive advantage

Examples of assets that create a competitive advantage

Key competencies may lie in primary activities. These include activities such as in-bound logistics (e.g. inventory control),operations (e.g. manufacturing), out-bound logistics (e.g. global delivery),marketing (e.g. brand development) and service (e.g. installation). Other key competencies may lie in support activities such as procurement, technology development,human resource management and the organization’s infrastructure. When trying to identify these competencies, rather than using the generic value chain it maybe more effective to develop a value chain that reflects the specific operations that face a particular business sector. The primary activities for an organization offering management consultancy are outlined in Figure below.

An organization’s key competencies, once identified,will normally fall into the areas of marketing, selling or operations .

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