Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Short note on core competencies
Short note on core competencies
Core Competencies and Competitive Advantage
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Short note on core competencies
Today, no one seems to doubt that the consumer electronics market in U.S is dominated by BestBuy which controls approximately 49% market shares (Palmer, 2016). However, 20 years ago, there was the other giant company, the Circuit City, in this market occupying a large market share. By 2000, Circuit City was comparatively successful with more than 60,000 employees at 616 locations across the United States (Romero, 2013). But Circuit City gradually lost its competitive advantage and finally went bankruptcy in 2012. In this writing, I will discuss what makes the Circuit City successful in the past and why it failed in the competition finally.
The core competence plays a key role in a business performance, and it also drives a business’s competitive
…show more content…
The main reason why Circuit City failed is the management of this company neglect its core competence. Circuit City focused on the differentiation initially, and lots of experienced sale-persons provided extraordinary customer service. But management of Circuit City decide to dismiss these sale-persons to lower the cost and compete with BestBuy and Amazon who put their core competences on the cost leadership. in the resource-based view, these sale-persons were supposed to be the valuable resources of Circuit City, but Circuit City abandoned them. This decision lead Circuit City lost its competitive advantages rapidly, and ironically, some of these sales-persons was reemployed by BestBuy. Furthermore, inappropriate strategies made by the management also promote the decline of Circuit City. According to Romero, Circuit City has established the “Car Max” to expand its business to automobile market, and invested in a new DVD technology, DIVX, which launched in 1998 (2013). Unfortunately, these both of these two projects went into a large success and brought abounding
...ty’s implementation of Superstores. These companies, however, were better able to see the advantages and disadvantages of the superstore, and parlay that knowledge into quick growth rate and a higher return on equity than Circuit City. On November 3, 2008, Circuit City announced that it would close 155 stores and lay off 17 percent of its workforce by year-end as a result of its ongoing struggle for profitability. Days later, 700 corporate employees were laid off from Circuit City’s headquarters and the 1,000 remaining corporate employees were merged into a single building in an effort to further cut costs. On November 10, 2008 Circuit City filed for bankruptcy. Circuit City had lost more than $5 billion in stock market value over the past two years. The company’s goal was to emerge from bankruptcy protection in mid-2009.
• CarMax executives were keenly aware of the fate of their one-time parent company, Circuit City, demise to Best Buy after ignoring or underestimating the threat Best Buy had become to their business and vowed that CarMax would not meet the same fate.
During 2003-2007, cisco registered a top durable top line growth period. They take a strong ability to manufacture and design new products with how the new world processes information. They have strong strategic industry partners and they have a good customer relationship. Cisco is a company that focuses on their core competencies. When they monitor and manage more than 10,000 devices, it becomes time consuming. Even with these problems cisco systems does have many strength...
What core competencies do you think the company has and what is needed to exploit opportunity and counter threats.
During the 1990s, each company experienced specific difficulties to their market share. Both companies struggled to reestablish themselves in the global consumer electronics world. As the year 2000 came around, new CEOs at both companies came up with even more complicated initiatives and reorganizations. Outsiders wondered how each company’s internal changes would affect their endless competitive battle in the industry.
Baldwin Company seeks to use its core competencies to accomplish a viable competitive advantage. Management is aware that competitors cannot provide the same value to consumers that Baldwin can, therefore, Baldwin has developed core competencies by:
How and why did the personal computer industry come to have such a low profitability?
This decision was based on the fact that the company was trying to pursue a cost leadership strategy in order to compete in the saturated market. The highest paid employees were the more tenured and experienced ones. These experienced, successful, well paid, and loyal employees were trimmed from Circuit City and quickly became a wealth of talent available for their competitors (Mehrmann 2009). This turned out to be “stuck in the middle” scenario for Circuit City. They neglected to upgrade and protect their core competencies which the competitors took advantage of. The company’s decision to pursue noncore activities like creating CarMax, a retail chain for used cars and introduction of a proprietary DivX player, which was a huge flop and the attempted merger with Blockbuster lead to further erosion of the company’s competitive advantage (Rothaermel
Firstly, there is a need to focus on the company competitive dimensions before embarking on the decisions. In this aspect, the Competitive capabilities are the Cost, Quality, Time, and Flexibility dimensions that a process or value chain actually processes and is able to...
Over the past 55 years Circuit City has transformed from a small local television store to an international chain of superstores. Circuit City will continue to be a competitive company in the consumer electronics industry as long as they offer a strategic plan that leads to larger sales.
The formulating of a major business strategy. This is the basis of efforts to build a serious competitive advantage.
Core Competence: The core competence of Skycity is to leverage as entertainment business in Australia. Skycity brand equity is built on providing best customer service thereby building a high degree of customer loyalty with a cult following. Its other core competence is its human resource management values based approach for building very strong internal and external relationships with suppliers, which deploys its business strategy, the integration through smart acquisitions and alliances help in maintaining their long-term strategic objective as the most recognized and respected brands in Australia.
This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA, 2010).
Human resource competencies are for example important in facilitating efficiency in performance of organizations’ operations towards competitive advantage. Business knowledge, change management, and human resource distributions are examples of human resource competencies that contribute to organizations’ competitive advantage. Such initiatives are however, undermined by institutional factors such as business ‘short termism’, cost centered strategies, as well as professional factors such as lack of business skills, inefficiency in measuring and evaluating success, attitude, and organizational
Case Study of Dell Computer Corporation Introduction Michael Dell founded Dell Computer Corporation in 1984 with a simple vision and business concept – that personal computers can be built to order and sold directly to consumers. Michael believed his approach had two advantages: (i) by passing distributors and retail dealers eliminated the markups of resellers, and (ii) building to order greatly reduced the costs and risks associated with carrying large stocks of parts, components and finished goods. Its build-to-order and sell-direct approach proved appealing to growing numbers of customers in the mid 1990s as global PC sales rose to record levels. In 1998, it was already the 3rd manufacturer in the United States with a 12% share of PC market and a nearly 6% share worldwide. The company’s fastest growing market for the past several quarters was Europe.