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Unleashing Organizational Capabilities for Competitive Success

Explore the concept of organizational capabilities and their impact on competitive success, including path dependence and risks of lock-in.

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Unleashing Organizational Capabilities for Competitive Success

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  1. Capabilities of organization: sets of resources and processes for competitive advantageObjective of the presentation: a) explain how concept of capabilities allows to undestand competitive successb) review path dependent nature of capabilities and dangers of lock-inassoc. prof. Mantas VilkasKaunas University of Technology Lithuania, mantas.vilkas@ktu.lt

  2. The concept of capabilities A capability is a strength of a bundle of interrelated processes for performing specific tasks Capability – is bundle of processes, shaped by (specific) asset position, and the paths available to it

  3. Are your capabilities real?1. The test of consumer relevance: Is the capability relevant to customers ??

  4. Are your capabilities real?2. The test of inimitability: Is the capability hard to copy?

  5. Are your capabilities real?

  6. From competitive advantage to core rigidity • The same objectives may be achieved by various approaches • Imaging -> lcd, plasma, crt, projectors • pull systems -> management information systems versus pull lean methods • Decisions restrict future opportunities • Stumbras closed its distillery Organizational paths based on capabilities

  7. Path dependent nature of Ekranas behaviour

  8. Formation phase • Capabilities: • ColourkinescopesforTV’s • Glasstechn. forsrceensandstacks • Electronicopticalsystems • Self-reinforcingdynamics • Success (appr. 25% WEuropemarketforsmallandmediumcolourkinescopes; 70 % of exports; appr. 3-5 mln of kinescopes/year) because of complementary/learningmechanisms lead to increase investment into present capabilities

  9. Lock-in phase • Ekranas efforts employed in lock-in stage • Flat’erization of kinescopes • Cost reduction by economies of scale • Protection of European market by antidumping tariffs • “I don’t say that we has not made mistakes. I doubt that we would achieve something more, if we would behave differently. Of course, we had to think of new technologies more early, but we had no choice. Therefore our strategy was as long as possible to be simple product manufacturing and hope that Lithuanian priorities will change” E.Žvybas, 2007 02 20 Verslo žinios”

  10. Questions on Capabilities of organization: sets of resources and processes for competitive advantageContacts:assoc. prof. Mantas VilkasKaunas University of Technology, Lithuania, mantas.vilkas@ktu.lt

  11. CRT vs LCD tvs

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