The term sustainable competitive advantage refers to the firm’s ability to establish platform for the higher productivity both in terms of employees and in organizational context that leads to higher profits as compare to their rivals and competitors. The source of competitive advantage could be anything ranging from firm’s ability to have world class production system and facility in place to having goof market offering that has both potential and desire by the customers.
A sustainable competitive advantage is the key to business success. It is the force that enables a business to have greater focus, more sales, better profit margins, and higher customer and staff retention than its competitors. It is the major driver of long-term business …show more content…
Their successful launch of two models took the company to the whole new heights. Their main source of competitive advantage was the production of quality cell phones and that they maintained their SCA for a considerable period of time.
In early 2000, however, Nokia remained at the back foot due to their foresightedness and failure in taping the growing environment’s demand on time. The ways in which Nokia could achieve sustainable competitive advantage is discussed below:
• Market understanding:
The time many other telecommunication companies were manufacturing high-end technologies, Nokia was busy in manufacturing phones that were not the scope of the future. They misunderstood the market demand on which, if identified, could build sustainable competitive advantage for the company.
• Lack of leadership:
Another factor that could have helped in achieving sustainable competitive advantage for Nokia is linked with the style of leadership at the company that did not provide required strategic visionary approach in the rapidly changing environment in their surroundings.
• Asia-pacific …show more content…
when other players were introducing touch-system the company was just relying upon their conventional scheme of introducing button-based cell phones that, with the lapse of time, lost attention by the potential customers.
• Beyond Asia-pacific approach:
Nokia, in the past, depended too much with the Asia-pacific region of the world. As per the case study information, Nokia lonely held over thirty percent markets share in each country i.e. India and Japan. The strategy depicts an underlying problem of being depending too much on one piece.
On the contrary, the western ring was catching little attention with market share in single figure. Provided the beyond Asia-pacific approaches, the company could perform better than their rivals and might maintained sustainable competitive advantage.
• Dedicated R&D:
Another way that could prove to be the source of sustainable competitive advantage is linked with the research and development of the firm. Nokia did not spend intelligently on the research and development that is evident from the offerings of the company with repeating style of advertising and conventional mobiles
A sustainable competitive advantage is the key to business success. It is the force that enables a business to have greater focus, more sales, better profit margins, and higher customer and staff retention than its competitors. It is the major driver of long-term business …show more content…
Their successful launch of two models took the company to the whole new heights. Their main source of competitive advantage was the production of quality cell phones and that they maintained their SCA for a considerable period of time.
In early 2000, however, Nokia remained at the back foot due to their foresightedness and failure in taping the growing environment’s demand on time. The ways in which Nokia could achieve sustainable competitive advantage is discussed below:
• Market understanding:
The time many other telecommunication companies were manufacturing high-end technologies, Nokia was busy in manufacturing phones that were not the scope of the future. They misunderstood the market demand on which, if identified, could build sustainable competitive advantage for the company.
• Lack of leadership:
Another factor that could have helped in achieving sustainable competitive advantage for Nokia is linked with the style of leadership at the company that did not provide required strategic visionary approach in the rapidly changing environment in their surroundings.
• Asia-pacific …show more content…
when other players were introducing touch-system the company was just relying upon their conventional scheme of introducing button-based cell phones that, with the lapse of time, lost attention by the potential customers.
• Beyond Asia-pacific approach:
Nokia, in the past, depended too much with the Asia-pacific region of the world. As per the case study information, Nokia lonely held over thirty percent markets share in each country i.e. India and Japan. The strategy depicts an underlying problem of being depending too much on one piece.
On the contrary, the western ring was catching little attention with market share in single figure. Provided the beyond Asia-pacific approaches, the company could perform better than their rivals and might maintained sustainable competitive advantage.
• Dedicated R&D:
Another way that could prove to be the source of sustainable competitive advantage is linked with the research and development of the firm. Nokia did not spend intelligently on the research and development that is evident from the offerings of the company with repeating style of advertising and conventional mobiles