Competitive advantage - strategic human resource management

8
Competitive Advantage Strategic Human Resource Management

Transcript of Competitive advantage - strategic human resource management

Page 1: Competitive advantage -  strategic human resource management

Competitive AdvantageStrategic Human Resource Management

Page 2: Competitive advantage -  strategic human resource management

Prepared By

Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.

Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – [email protected]

Page 3: Competitive advantage -  strategic human resource management

The concept of Strategy

• The concept of strategy is

based on three subsidiary

concepts:

– Competitive advantage.

– Distinctive capabilities and

– Strategic fit.

Page 4: Competitive advantage -  strategic human resource management

Competitive advantage• The concept of competitive

advantage was formulated by Michael Porter (1985). Competitive advantage, Porter asserts, arises out of a firm creating value for its customers. To achieve it, firms select markets in which they can excel and present a moving target to their competitors by continually improving their position.

Page 5: Competitive advantage -  strategic human resource management

Competitive advantage• Porter emphasized the

importance of: differentiation, which consists of offering a product or service ‘that is perceived industry-wise as being unique’; and focus – seeing a particular buyer group or product market ‘more effectively or efficiently than competitors who compete more broadly’.

Page 6: Competitive advantage -  strategic human resource management

Competitive advantage• He then developed his well-

known framework of three generic strategies that organizations can use to gain competitive advantage. These are:– Innovation – being the unique

producer;– Quality – delivering high-

quality goods and services to customers;

– Cost leadership – the planned result of policies aimed at ‘managing away expense’.

Page 7: Competitive advantage -  strategic human resource management

Competitive advantage• A distinction has been made

by Barney (1991) between the competitive advantage that a firm presently enjoys but others will be able to copy, and sustained competitive advantage, which competitors cannot imitate. This leads to the important concept of distinctive capabilities.

Page 8: Competitive advantage -  strategic human resource management