Business

A process that leads one firm to earn a sustained profit as compared to the other firms can be safely termed as competitive advantage. This profit is characterized to be more than the average returns of that very industry, and also a measure of the firms competencies which gives more benefits to its clients as compared to its competitors. (Daft, 2001). To achieve firm competitiveness is one of the major objectives in business, and firms achieve this objective by adding value to the product.

Various techniques and tools are utilized in order to achieve this goal.  In this regard strategic positioning is one tool that helps firm to achieve their targets. In this strategy business positions their goods and services on the basis of study of some external environment.

Experts are of the view that in order to achieve competitive advantage firms can exploit their resources capably and competently. They can create value for its customers in a unique method without copying its competitors industry. Uniqueness in resources is one major prerequisite required in the achievement of this strategy. Resources and capabilities is something that every firm has, but rare and exclusive resources are something that leads a firm towards success. Otherwise the competitors would exploit them, so that they become common thus lessening their advantage and ultimately effecting organizations performance. (Grayson  Hodges, 2004).

We can see the examples of resources like brand equity, copyrighted and customer base of the firm. Incorporated, simulated, and rearranged resources can play a major role in developing basic competency for business. Nevertheless in the current scenario, where the consumer markets are undergoing quick changes along with the external environment to develop such level competency is hardly impossible.

Researchers have shown that resources if properly utilized can generate significance for any firm and increase its performance. Important thing that matters is that firm should be capable enough to exploit these resources positively and drive them in such a manner that they become valuable for the firm. Regular evaluation has shown that exposure to external environment, suitable leadership and organization of process if not properly addressed will ultimately lead to catastrophic outcomes. (Heller, 2007).

Similarly the emergent school of thought focuses on such a learning environment that appreciates developing of unique ideas among the employees, and acknowledges the fact to make the employees to work according to their ideas. This freedom of sharing ideas would lead the employers to enhance their skills and a process of evaluation of strategy would be established. What matters here is the role of manager, who should have grasp over the knowledge to access the changing patterns and requirements of business environment. In order to achieve maximum benefits, sometimes firms go for mergers and attainments. I-e they intentionally form coalitions with concerned franchises and firms and share resources and risk factors, thus benefiting both partners in best and a very positive manner.

Another important tool that leads to competitive advantage and sustainability is innovation. Innovation also helps in attaining above average profits to the industry. Any firms corporate strategy mainly focuses on this tool and achieves competitive advantage. This advantage can be sustained or not sustained. In case the competitors are successful to follow you then it might reduce your effect, else the competitive advantage will show its long lasting effects and results.

Competitive advantage can help a business achieve sustainability and success. According to Michael Porter, there are two types of competitive advantage 1) Cost advantage 2) Differentiation advantage.  Initially firm has to identify from both types that what types the value chain and components. In the first type that is cost advantage the business is able to give its outcome at a low cost as compared to its competitors. Whereas in the other type the organization goes beyond its alternative firms by facilitating its customers, and by making their product unique and exclusive by adding cost advantage to it . (Mercer, 1995).

Any firm cannot attain sustained competitiveness if competitors are not following you and not lessening your effect for a longer period of time. Competitive advantage can be achieved by reconfiguration of assets or by putting resource into another area by means of integrating process. All it requires is strategic planning and regular exploitation of available resources and opportunities. If a firm is capable enough to enhance this area, it can achieve competitive advantage easily. Problem lies with the acceptance of change on part of workers and staff. Any new process if initiated needs training of the staff and workers which at times they are not willing to take.

Rigidity and reluctance to adopt social change is one major hindrance in acquiring competitive advantage. We can observe the example of Oticon Company which was importer of hearing aids. This company adopted a strict and rigid strategy of not adopting the advancements and progress in the field of hearing aids business, resulting in the loss of their shares and market value. At such a critical situation, Kolind took over as the president of Oticon company. He was a competent leader having necessary leadership qualities. He evaluated the reasons behind this downfall, weaknesses in the organizational structure, and the ways decisions were made and strategies were formulated. (Daft, 2001). His major concerns were to focus on customer orientation, formation of teams, and formulation of new strategies. In doing so he took out the company out of crises. Later on Jacobson joined the executive vice president and led to the emergence of clashes on various decisions. However, Jacobson finally took the charge as CEO and followed the path to success via dynamic and emergent approach of doing the business. Thus Kolind and Jacobson were the focal persons who saved the company from drowning.

Hence we observe that a leader can play a vital role in the success or failure of any organization. A healthy organizational structure along with competent management can bring mind blowing reforms in the company. A company with best resources but poor planning and inefficient leadership will be totally worthless, unless there is a right person at the right time to rescue the business.

The crux of the paper clearly reflects the importance of effective and proper strategy formulation and its implementation. Sustainable competitive advantage can never be achieved only with the presence of one single ingredient that is resources. Several other components like leader having visionary abilities to analyze changes in the external environment, needs of customer and who could male use of components like work resources is extremely important. Apart from this he should also have skills to create value for the customers and concentrate on several strategies in order to develop and further maintain competitive advantage in his firm. (Grayson  Hodges, 2004).