then for phase III focus on vertical integration of production to create greater economic value‚ therefore gaining and sustaining competitive advantage and producing the largest NPV. By contracting manufacturing‚ Nucleon will be able to focus on core competencies with no capital investments. Also‚ by vertical integration Nucleon gains sources of competitive advantage. Contracting manufacturing focuses on core competencies. Nucleon will have facilities and personnel in place to implement phases
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consumer’s experienced benefits. C.K. Prahalad and Gary Hamel coined the term core competencies‚ or the collective learning and coordination skills behind the firm’s product lines. They made the case that core competencies are the source of competitive advantage and enable the firm to introduce an array of new products and services. According to Prahalad and Hamel‚ core competencies lead to the development of core products. Core products are not directly sold to end users; rather‚ they are used to
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there cannot be progress without competition. We have reached a level where it seems to be taken for granted- individuals have to be competitive‚ companies have to be competitive and even countries have to be competitive. Every organized activity even outside the domain of business and commerce is also highly competitive. Interestingly even religions are getting competitive to prove the superiority of one over the other. Nonprofit enterprises such as colleges‚ churches and charities‚ for example‚ generally
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Comparative advantage In economics‚ comparative advantage refers to the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another. Even if one country is more efficient in the production of all goods (absolute advantage in all goods) than the other‚ both countries will still gain by trading with each other‚ as long as they have different relative efficiencies.[1][2][3] For example‚ if‚ using machinery‚ a worker in one country can produce both
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However‚ optimization of supply chain activities alone cannot always yield a source of competitive advantage. This is for the simple reason that value chain not only seeks to do away with the activities that do not add value‚ but establishes the importance of other support activities‚ including infrastructure‚ technology‚ and so on‚ that play a vital role in providing the foundation for competitive advantage. Value chain’s primary activities are similar to the primary functions of the supply chain
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..... Producing sustainable competitive advantage through the effective management of people* Jeffrey Pfeffer Executive Overview Achieving competitive success through people involves fundamentally altering how we think about the workforce and the employment relationship. It means achieving success by working with people‚ not by replacing them or limiting the scope of their activities. It entails seeing the workforce as a source of strategic advantage‚ not just as a cost to be minimized
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994) TRUSTWORTHINESS AS A SOURCE OF COMPETITIVE ADVANTAGE JAY 6. BARNEY Fisher College of Business‚ The Ohio State University‚ Columbus‚ Ohio‚ U.S.A. MARK H. HANSEN College of Business Administration‚ Texas A & M University‚ College Station‚ Texas‚ U.S.A. Three types of trust in economic exchanges are identified: weak form trust‚ semi-strong form trust‚ and strong form trust. It is shown that weak form trust can only be a source of competitive advantage when competitors invest in unnecessary
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Wal-Mart competitive advantage 6. To what extent is WM’s competitive advantage sustainable? * At the time discount stores were located within large towns‚ WM’s strategy was to put good-sized stores into little one-horse towns that everyone else was ignoring. * WM alternative was to build their own distribution centers so that they could buy in volume at attractive prices and store the merchandise. * WM earn the trust of their customers every day by providing a broad assortment of
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Competitive Advantage in Technology-intensive industries The principal link between technology and competitive advantage is innovation: this is responsible for new industries coning into being and for some firms dominate their industries. The innovation process: while invention is the creation of new products or processes through the development of new knowledge or a combination of existing ones‚ innovation refers to the commercialization of a single or of many inventions. Not all inventions
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THE COMPETITIVE ADVANTAGE OF CORPORATE PHILANTHROPY Every company’s main objective is to earn profit. Companies should increase their capacity to support certain projects and activities other than their ordinary business operations. Some companies perform activities that promote social and environmental development. These activities are referred as philanthropic activities. Philanthropy is the act of promoting what is human or a state of being productive of benefit to humans. Some believe that
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