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Developing Strategic Capabilities


Some companies tend to consistently outperform others. Why is this so? While there can be many specific answers to this question, much of what drives company success is the development and execution of an appropriate strategy. What is an appropriate strategy? An appropriate strategy is one that turns a company’s core competencies into a sustainable competitive advantage. Core competencies are those things a firm can do that distinguish it from its rivals. Corporate Strategy & Finance Associates can help you develop a strategy that leverages the strengths of your business to deliver value for your customers and gain an advantage over your competitors. Developing your strategic capabilities is the key to your long-term success.


What makes a good strategy?


There are no "right" or "wrong" strategies, only appropriate strategies. A good strategy for one company might be a horrible choice for another. An appropriate strategy is based on the resources, capabilities, and core competencies that separate your company from the competitive pack.


The Building Blocks of Strategy


Resources are the things a company has. They are the tangible and intangible assets that provide the basis for operation. Capabilities are the things your company can do with the things you have. Core competencies are resources and capabilities that serve as the basis for sustained competitive advantage. These are the things you can do better than anyone else.


Cost Leadership vs. Differentiation


Choosing an appropriate strategy for your business means deciding and declaring how you will deliver value to your customers. Will you deliver value by providing products and services of acceptable quality at the lowest possible cost? Or will you deliver value by providing products and services that your customers view as significantly different? Before you say that you can do both, beware that standing in the middle of the road is often just a good place to get run over.