Academics in strategy have always viewed with suspicion the claim that conglomerates or unrelated diversifiers create value for investors. Much of this suspicion can be traced to the conglomerate merger wave in the s, spearheaded by companies such as LTV, ITT, and Textron. The primary driver of the conglomerate in that era was financial:
This has a direct relationship with pricing. A distinctive competence is a distinct core competence. When your products take advantage of your distinctive competencies, then by definition your product are differentiated. Your products have your distinctive competencies.
When pricing products that have competition, you start with your competitors price and then add the value of your positive differentiation and subtract the value of your competitors advantages.
Your distinctive competence is one of your positive differentiators, as long as your market values it. If your distinctive competence is so strong that it essentially makes you a monopoly in your market i. You have created market conditions and products with no competition.
In these type markets, buyers are relatively price insensitive, meaning we can often charge higher prices and barely lose any business.
Distinctive competencies are inherent competitive advantages. Create products that take advantage of your distinctive competencies and you are creating products you can charge more for.
Pricing Mark Stiving Mark Stiving is an instructor at Pragmatic Marketing with more than 20 years of experience in business startup, development, management, turnaround and sales and design engineering.
He has led pricing initiatives as director of pricing at Maxim Integrated and as a member of technical staff at National Semiconductor. Mark also has served as president of both Home Director Inc. He can be reached at mstiving pragmaticmarketing.The proposed 'critical competence' framework integrates the various studies on core competence and puts forth an all-encompassing practicable methodology to be utilized by firms for sustained success.
In addition, if you were a potential customer or an existing one, he made you understand why you had to have Apple's products or services.
He was the ultimate salesperson. Distinctive Competence is a competency unique to a business organization, a competency superior in some aspect than the competencies of other organizations, which facilitates the production of a unique value proposition in the function of the business.
Apple’s distinctive competencies: Innovative culture, successful entry into new markets, human . Facebook's core competency was to help people connect and interacton social networks. Facebook has managed to help people to keepfriends and family close.
Managers and management scholars alike need operational models and concepts for dealing with core competencies within strategic management.
This book provides tools for the practitioner as well as fundamental theoretical concepts to enable scholars to further build upon Drejer's torosgazete.coms: 2. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field.
Also called core capabilities or distinctive .