Building organizational competencies for competitive advantage

The search for a competitive advantage has become businesses' version of the quest for the Holy Grail...and understandably so. Identifying and building organizational competencies can help businesses gain competitive advantage within their industries.

Competitive advantage...the term has been

tossed around in meetings, boardrooms and mentioned in business plans for such a long time that it seems to have become just a cliche in many circles. However, businesses must view competitive advantage as more than just a phrase or concept. It is an essential asset to strive for, cultivate and utilize strategically.

It just does not happen

Competitive advantage occurs when a firm uses its resources and capabilities to develop organizational competencies that, in turn, create value for customers.

Some think that competitive advantages must be unique to a single firm. While that would be a wonderful achievement for any organization, holding such a singular position in the world of commerce is not mandatory or even the norm. The search for a one-of-a-kind variable to base competitive advantage on actually deters many companies from pursuing any competitive advantages at all. Finding a unique item can be such a daunting task that there just does not seem to be enough time and energy to devote to developing a competitive advantage. Management often already feels so overwhelmed and overworked that the concept of competitive advantage is not given much more than lip service.