Staying one step ahead of competition requires a sufficient short and long term strategy. To formulate these strategies it is of great importance to analyse the inner competence of a firm. For the last decades several researchers have been developing different approaches to determine idiosyncratic factors generating sustainable competitive advantage (SCA) by a value creating strategy.
In the analytical discussion we have developed our own model by considering the existing approaches and adding some new important factors as driver and forces of SCA. Thus, the model is applied to Peugeot to show its feasibility. The model shows the synergy through the collective learning between the internal factors: resources, capabilities, competences, core competence; and the external factors: customer relationship, competitors and stresses the importance of interaction between these factors to shape the SCA of a firm placed in a highly competitive market.
Table of Contents
1. INTRODUCTION
1.1 PROBLEM DISCUSSION
1.2 PROBLEM FORMULATION
1.3 PURPOSE
1.4 CHOICE OF COMPANY
2. THEORY PART
2.1 RESOURCE-BASED VIEW (RBV)
2.2 COMPETENCE-BASED VIEW
2.3 DYNAMIC CAPABILITIES APPROACH
3. EMPIRICAL PART
4. ANALYTICAL DISCUSSION
4.1 DEFINITION OF TERMS
4.2 PRESENTATION OF MODEL
4.3 EVALUATION OF MODEL
5. CONCLUSION
6. REFERENCES
APPENDIX
APPENDIX 1: PSA-GROUP
Objectives and Research Focus
The primary objective of this work is to explore how different strategic management approaches can be synthesized to identify the sources and drivers of sustainable competitive advantage (SCA) for firms operating in highly competitive and dynamic environments.
- Analysis of key theoretical frameworks including the Resource-Based View, Competence-Based View, and Dynamic Capabilities approach.
- Development of an integrated model that links internal company factors with external environmental influences.
- Examination of the role of collective learning as a mechanism for strategy formulation and refinement.
- Empirical application of the proposed model to the Peugeot cars division within the PSA Group.
Excerpt from the Book
4.3 Evaluation of model
In order to evaluate our model we will apply it to a case company. By doing this, we want to focus on proving the feasibility of the whole system by giving an understanding example for the flow path through the system. We want to discuss the successful “Design” aspect of the Peugeot cars in the French and Chinese market.
Beginning with the internal factors of the model, we want to show the path of breaking down from resources to core competences. According to our definition we can identify one of Peugeots valuable resources as the human resource in particular the engineers and the designers. This valuable resource facilitates rent-earning potential to the great extents, since this group reveals the ability to become a set of knowledge and provides SCA by deploying effective teamwork between immaterial and material resources; that means creating a capability in terms of our definition. An important capability as the “Design” fulfils determinants of the sustainability of competitive advantage. The “Design” of Peugeot cars can be interpreted as durable, imperfectly transferable as well as replicable and difficult to imitate for competitors. Nevertheless, the “Design” can even be viewed as a competence because it results from synergies among capabilities and from interactions and co-ordinations of immaterial resources. Besides it offers high value to the organisation. An advanced design is furthermore a prerequisite to compete in the automobile market, a competence Peugeot possesses. Due to Peugeots outstanding and unique design, it adds essential benefits to customers who appreciate design in general. That is why we finally view the “Design” of Peugeot cars as a Core Competence.
Summary of Chapters
1. INTRODUCTION: Describes the theoretical background of the competence domain and sets the research purpose regarding the identification of sources of sustainable competitive advantage.
2. THEORY PART: Reviews three foundational frameworks—the Resource-Based View, the Competence-Based View, and the Dynamic Capabilities approach—to establish a basis for the analysis.
3. EMPIRICAL PART: Introduces the PSA Group and the Peugeot division, providing necessary context on their market position and recent strategic initiatives.
4. ANALYTICAL DISCUSSION: Defines key terms and presents a proprietary model that integrates internal and external factors, followed by an evaluation based on the Peugeot case.
5. CONCLUSION: Synthesizes the study findings and suggests that an integrated approach is essential for identifying drivers of SCA in dynamic markets.
6. REFERENCES: Lists the academic literature and sources used to support the theoretical and empirical arguments.
APPENDIX: Provides detailed background information on the PSA Group strategy and its operational activities.
Keywords
Sustainable Competitive Advantage, SCA, Resource-Based View, Competence-Based View, Dynamic Capabilities, Peugeot, PSA Group, Collective Learning, Core Competence, Strategic Management, Organizational Knowledge, Innovation.
Frequently Asked Questions
What is the fundamental focus of this research?
The research focuses on analyzing the inner competences of a firm to understand how they generate sustainable competitive advantage in a highly competitive market.
What are the central themes discussed in the paper?
The paper covers the Resource-Based View (RBV), the Competence-Based View, Dynamic Capabilities, and the importance of integrating these perspectives into a unified strategic model.
What is the primary goal of the study?
The goal is to develop a comprehensive model that effectively identifies the sources and drivers of sustainable competitive advantage by considering both internal company resources and external market factors.
Which scientific method is utilized for this analysis?
The authors employ a theory-based approach that is subsequently evaluated through a case study methodology, specifically applying the model to the Peugeot division of the PSA Group.
What content is covered in the main section of the paper?
The main section details theoretical frameworks, presents a newly developed model of SCA, and performs an evaluation of this model using the example of Peugeot's "Design" competence.
Which keywords characterize this work?
Key terms include Sustainable Competitive Advantage (SCA), Resource-Based View, Competence-Based View, Dynamic Capabilities, and Collective Learning.
How does the model incorporate external factors?
The model treats external factors, such as customer relationships and competitor behavior, as crucial inputs that feed into a "collective learning" loop, which in turn influences internal resources and future strategy.
Why was the Peugeot case study chosen for model evaluation?
Peugeot was selected because it operates in a highly competitive global automobile industry, where maintaining SCA through innovation and design is critical to long-term survival.
- Quote paper
- Brüggemann/ Nyström/ Kiefer/ Gence (Author), 2004, Competence Analysis: An approach to a firm´s competence domain, Munich, GRIN Verlag, https://www.grin.com/document/29401
