Competitive Advantage
Competitive advantage is the result of the activities a company knows how to do well. Unless a company knows how to combine and exploit its resources effectively, it will not end up being a workable venture.
Firms must know how to organise procurement, production, marketing, after sales service and innovation, as well combining these needs to secure the profitable delivery of competitive products. The firm also needs to know how to recruit and develop skilled employees and managers as well as being aware of how to motivate them.
The increasing importance of knowledge is shown by the fact that in many sectors investment in intangible assets is now greater than in fixed capital equipment.
The grouping together of responsible business and research groups has also been found to maximise innovation and competitiveness giving companies a competitive advantage over rivals.