Organizational resources and establishing competitive advantage Essay

organisational resources and establishing competitive advantage - Essay ExampleOn the other hand, it has been made exempt that not all organizations argon able to effectively develop their resources. Also, the continuous join on of competitor in the global merchandise is a factor that drive out negatively influence the childbeds of organizations to improve their position in the market using their resources and capabilities. It seems that in the long term, the transformation of organizational resources into a competitive advantage has to be c befully managed since the challenges in the internal and the external organizational environment are seeming to be galore(postnominal) as the conditions in the organizational environment become more hostile, under the influence of the global market pressures, the support that an organization has to provide to its resources has to be increased, otherwise their chances to become a competitive advantage are significantly reduced. At this poi nt, the following issue appears how an organization can secure that its resources will become, even in the long term, competitive advantage? It seems that such prospect cannot be considered as guaranteed, especially in industries where competition is high. This issue is further analyzed in the sections that follow using the literature published in this field. 2. Organizational resources and their use for the establishment of competitive advantage 2.1 How an organization can establish competitive advantage from its resources The appointment of the exact characteristics of competitive advantage in modern organizations is a challenging task. Researchers and theorists have tried to draw the criteria under which organizational resources can become competitive advantage, but the results of their studies seem to be contradictory. Most commonly, vehemence is given on the balance between the firms strengths and weaknesses, as the specific relationship can also affect the firms opportuniti es and threats. The interaction of the above sectors in the context of organizational fruit is reflected in the SWOT analysis framework. The above framework is based on the view that firms that are likely to emphasize on their internal strengths and control their weaknesses are more able to face environmental threats, a fact that can help them to develop competitive advantage towards their rivals (Barney 1995). However, the terms under which the specific effort would be successful should be further explored. Indeed, even if effectively organizing its internal environment and if it tries to avoid major(ip) market risks, a firm has still to face the threat of an unexpected downturn if there are no other strategic alternatives in place, as for example strategic alliances with other firms that control an definitive share of the relevant industry. On the other hand, Peteraf (2006) noted that there are certain conditions that can increase the potentials of an organization to develop a c ompetitive advantage. These conditions could be described as follows superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition (Peteraf 2006, p.179). It is assumed that organizations that seek to develop a competitive advantage should focus on the particular conditions. This view can be criticized as of the lack of explanations regarding the potentials of these conditions to exist in all