Nowadays, life runs extremely fast; each year occurs a number of various companies that want to achieve success on the market. In order not to be forgotten and vanish, they need to be able to meet competition. That is why the company is to clarify its competitive advantage. This concept includes particular attributes that can be used to excel in competitors. For this, it is important to settle on a particular place on the market (Fortuin 26). The capability to stick to it while enduring the changes that influence the functioning of the company and also to adapt to them (which is called dynamic capability) occurs to be vital if the company does not want to lose its place (Teece 7).
While developing and managing dynamic capabilities, the organization may face some issues. The general processes are not that easy to track, as this function is still in formative stages. The workers will need to examine and deepen into the specific activities connected with these capabilities, as a further development in the area will be almost impossible without this knowledge. The resources can stay the same, but their value is likely to turn into the source of the inflexibility of a company. The ability to meet the customer’s demands may decline due to the appearance of the new companies on the market and the increase in the number of similar products (Lawston and Samson 383).
The dynamic capabilities should be changed if they are not apposite anymore and do not promote the business. They are mostly relevant for the organizations that exist in unsteady environments such as high-tech industries (Ambrosini, Bowman, and Collier 18).
Competitive advantage in multinational organizations, such as Microsoft and Apple, touts strategy based on the resources building and assets the useful technology, typically protected by a firm stance through intellectual property. However, it is not sufficient to keep the most important competitive advantage on a systematic basis of this strategy. As a rule, successful businesses in the global marketplace are those, which can show their consciousness and positive feedback to the change of the business environment (Chilton 5). There are two main features that can be seen in successful organizations. The first one is the stability and capacity to adapt to product innovation. The second one is the possibility of the management to bring together the reorganization of the internal and external efficiencies.
It was noted that enterprises that gathered a bulk of the assets still lack the functional capacity to take advantage of invaluable technologies. It can reduce a competitive advantage for the company for a long period of time. Thus, there are many factors that can lead to such things: the possible repetition that results in the expansion of the organization internally and the imitation caused by the replication from the competitors. From this, it follows that the extent of the importance of the dynamic capabilities is the key to competitive advantage. The dynamic capability indicates the capacity of the organization to merge and construction of the convert internal and external efficiencies (Easterby-Smith and Lyles 276).
These can help the organization to achieve the innovative forms of competitive advantage by integration, construction, and transformation of the internal and external efficiencies, and to respond to the changes in the environment. Dynamic capabilities are very helpful when it is needed to explain the sources of competitive advantage in extremely fluctuating markets.
Works Cited
Ambrosini, Veronique, Cliff Bowman, and Nardine Collier. “Dynamic Capabilities: An Exploration of How Firms Renew Their Resource Base.” British Journal of Management 20.1 (2009): 9-24. Print.
Chilton, Michael. Knowledge Management and Competitive Advantage: Issues and Potential Solutions: Issues and Potential Solutions, Hershey: IGI Global, 2013. Print.
Easterby-Smith, Mark, and Marjorie Lyles. Handbook of Organizational Learning and Knowledge Management, West Sussex: John Wiley & Sons, 2011. Print.
Fortuin, Frances. Strategic Alignment of Innovation to Business: Balancing Exploration and Exploitation in Short and Long Life Cycle Industries, Wageningen: Wageningen Academic Publications, 2007. Print.
Lawston, Benn, and Denny Samson. “Developing Innovation Capability in Organizations: A Dynamic Capabilities Approach.” International Journal of Innovation Management 5.3 (2001): 377–400. Print.
Teece, David. Dynamic Capabilities and Strategic Management: Organizing for Innovation and Growth, New York: Oxford University Press, 2009. Print.