IN DEVELOPING A COMPETITIVE STRATEGY, WHAT IS MORE IMPORTANT ---- CORE COMPETENCIES OR STRATEGIC PROCESS --- DISCUSS.
The importance of both, the core competencies and the strategic process, cannot be scaled down. The process makes it possible for the organization to find out and put in place such strategies which have high probability for success and they also have the ability to create a bond between the vision, mission, goals and so on. This adherence to the strategic process and strategies thus formulated can lead to better position of the organization if there is a strong commitment from within the entire company. This commitment is the strategic intent without which it is very difficult, if not impossible, to implement the strategies to their fullest potential.
No matter what high degrees of strategic intent exist; the strategy cannot be competitive if the much-needed skills for putting the strategy in place are missing.
Gone are the days that focused on inward reengineering for increment in organizational efficiency, the key for having a successful competitive strategy is to align the strategy with the organization's business goals and back it with its core competencies. This is a sure way to leverage the company to compete and grow. Core competencies are now viewed as the essential and most fundamental skills, abilities and procedures that an organization builds up over a wide span of time and which play a significant role in the organization's success.
The competencies exist at the very heart of the organization in areas which are deemed to add value to the company's products. They can also be regarded as the most integral element of the company's distinctive and unique resources or more popularly called Strategic Assets, the reason being the fact that they enable the organization to acquire a competitive advantage...