Modern business to create value and develop marketing

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Fundamentals of Financial Management
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Chapter 14 / Exercise 5F
Fundamentals of Financial Management
Brigham
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modern business to create value and develop marketing strategies that are superior to thecompetitors. Understanding the industry is important in the sense that the company gets toimplement the appropriate strategies for developing sustainable competitive advantage(Kushwaha and Rao , 2015, p. 376). Efficient knowledge sharing is identified as essential in theinnovation processes as well as the ability to change and adapt to the various dynamics in themarket. Cohen and Olsen (2015, p. 1178) can also be observed to emphasize the fact thatknowledge management (KM) is an effective capability in business in which the organizationscan capitalize on to develop appropriate competitive strategies. On the other hand, the shared expertise assists in the utilization of the variousopportunities in the internal and external environment of the organization (Coff , 2002, p. 108).
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Fundamentals of Financial Management
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Chapter 14 / Exercise 5F
Fundamentals of Financial Management
Brigham
Expert Verified
Distinct expertise should be shared with the employees so that a high level of congruence isachieved in developing the critical capabilities in the market. Since the competitive advantagedepends on the capabilities of developing products and services that deliver exceptional value tothe customers, it can be said that Ittihad Company is in a better position to develop a sustainedcompetitive advantage. Another distinct aspect at Ittihad Company can be observed in the qualified personnel,management, and technology. Human resource has always been regarded as one of essentialresources in business (Phillips and McConnell , 2005, p. 258). Getting the most out of humancapital is necessary and a significant capability that makes companies develop exceptionalcompetencies that are used for competing. A qualified staff and management are thereforeregarded as a valuable resource available in any business. Such staffs assist in the production ofhigh-quality products and services at low costs. The level of expertise brought by the highlyqualified personnel at Ittihad is essential in developing sustainable competitive advantage as itsteam ensures that the produced glass materials are superior as compared to the competitors’offering.Another capability at Ittihad glass processing factory can be seen as the responsiveness tothe customer’s demands. The consumers’ demands are dynamic and therefore change with theprevailing trends. A business should, therefore, develop a unique competence to respond to thecustomers' needs. Advances in technology and changes in taste and preferences are responsiblefor the fluctuations in the customer’s demands (Hitt, Keats and DeMarie , 1998, p. 22). At thesame time, it should be realized that the environmental factors such as economic, political andsocio-cultural dynamics affect the consumption patterns. The competency to respond the changesin demands is critical for developing sustainable competitive strategies. Woodruff (1997, p. 12)also asserts that the responsiveness is essential in developing the customer value. Deliveringexceptional customer value is regarded as a competitive advantage as it places the firm at a betterplace through a strong brand that enhances the customer loyalty and increased market share.

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