A Sustainable Competitive Strategic Advantage

Moving forward, social media has been a major convenience and reward to virtually everyone. On an individual basis, social media allows friends and family both near and far to communicate with one another. Also, businesses are flourishing through the use of social media. Advertising has never been easier. Horn (2013) states, “Our profession, unlike any time before, is demanding we become social media (…) experts” (1). Horn (2013) also states, “More than half of reporters (55 percent) use Twitter and Facebook to source stories” (1). Social media has greatly benefited business life and personal life.

Social media has become an essential channel for corporations to build a two-way relationship with their customers. However, having a social media account cannot solve everything. To make the best use of social media in keeping a positive relationship with their customers, corporations ought to seek and maintain influence among their followers in social media, and participate in communications with them.

The use of social media marketing has become a standard way in which organizations advertise their products or services. Social media marketing allows consumers to have immediate access to other consumers reviews or to post a review about a product or service. There is engagement between the company and the consumer (Evans, Dave 2010). Social Media emerged in the late 1980’s when websites such as Prodigy, Compuserve and America Online. Prodigy was first of it’s kind and was known as a ”consumer online service”. Half of the page is devoted to advertising. Facebook, Twitter, Myspace, Hi5, Bebo and Orkut are all social media platforms that are utilized as platforms today.

Is sustainable competitive advantage possible, and how can technology be used as its catalyst? This is the question that has vexed managers and business leaders for decades. According to Michael Porter, the answer lies in how technology is used. In this Case Study Report, Team 3 discusses how Mrs. Fields, Inc. leveraged technology for strategic positioning. Mrs. Fields, Inc. did not create the sweet snack industry, but it was the company’s innovative use of technology that helped the company sustain a competitive advantage over other companies vying for those same impulse snack dollars.

Social media is not new. Facebook has been around since 2004, YouTube since 2005, and Twitter in 2006. What is new is how social media sites like Facebook, YouTube and Twitter are affecting the way businesses market their products and services. Never before in our history have consumers been able to communicate so effortlessly with each other and with the businesses they frequent. Never before have businesses been able to interact and react to customer feedback so quickly and efficiently. However, just because businesses have the ability to use social media for their marketing and advertising efforts, does not necessarily mean they should. This paper intends to

Sustainable competitive advantage (SCA) is the remarkable position that a company or organization builds in order have an upper hand over its competitors that helps the business outperform from the rest consistently. “Sustainable Competitive Advantage is the unique position that an organization develops in relation to competitors that allows it to outperform them consistently” (Hofer and Schendel, 1978). SCA is basically the value creating process and position that cannot be copied by other companies that puts the company to an advantage leading to the production of above normal rents. There is a vast difference between Sustainable Competitive Advantage and Competitive advantage. SCA is long lasting and cannot be imitated. Therefore it can be called a sustainable competitive advantage if it can and must be maintained for a significant amount of time (www.wikipedia.org). Any company or firm needs to have a sustainable competitive advantage if they need to survive in the market for a long period of time. This helps the company to improve its competitive position in the market. The company may distinguish themselves as a sustainable competitive market on the basis of four specific criteria which will be discussed below in detail.

In terms of core competency, Nike 1) provides high quality durable items to its customers. As a leader in fitness clothing and accessories, Nike strives to be on the edge of the market by providing innovative ideas that improve customer satisfaction. Recognizing the importance of eco-friendly business 3) Nike promotes recycling to its customers and utilize recycling in its own manufacture of products. Lastly, this organization 4) completes customer satisfaction while maintaining quality manufactured items at a competitive price.

Criteria used to create Sustainable Competitive Advantage, in relation to Core Competencies, Resources, and Capabilities

We cannot deny how big of an impact social media has on our lives now, not only on people but businesses too. It has opened a whole new door to the business world and given them a big opportunity to interact and attract a larger amount of customers. It’s given us a new and faster way of communication by exchanging pictures, stories, news, blogs, online discussions, etc. In exchange businesses have benefited by a long shot just by the click of a button. With the help of the Internet a company no longer is dependent on a particular customer base to survive because now it can reach out to a worldwide audience within seconds. It’s imaginable the countless business attributes of all social media to this day and still is growing. Social media

The purpose of this report is to show that even though some state that Social Media has fallen short of their expectations, it is actually good for business, given that it enhances the visibility of their brand and helps businesses stay connected to potential customers.

According to Johnson, Scholes and Whittington (2008), core competencies refers to “the skills and abilities by which resources are deployed through an organisation’s activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtain”. Developed by Hamel and Prahalad in 1990, simply stated, (a) it provides customers with major benefits, (b) it is difficult to imitate and (c) it can be leveraged in many products and markets. Differentiated from regular competencies and capabilities, Hamel and Prahalad (1990) highlighted the underlying role of a core competence. They likened the diversified corporation to a tree, with the branches and canopy representing the wide range of end product in the various

Of the many innovations that the Internet has made possible, social media is proving to be the most disruptive at consumer, enterprise and government levels of societies globally. Customers and citizens have a platform now to voice the opinions and concerns very openly and if they choose, very loudly, on a global stage made possible by social media (Ang, et.al.). It is the most revolutionary series of technologies available today for creating and sustaining more effective relationships with customers as well, leading to the development of an entirely new class of Customer Relationship Management (CRM) systems called Social CRM (SCRM) (Greenberg, 412).

Social media is capable of connecting a brand with its consumers and discover how they are being perceived, it also has the power to change perceptions and identify the key people within the business network. The unique feature of social media is that it can provide corporations and businesses solutions developed through operating with consumers and stakeholders. Basically, social media serves as a visible connection to one’s corporation and its stakeholders, consumers, suppliers, etc, who each have a defined role within the system to filter and regulate information. As mentioned earlier, the influence of social media is spreading in a proliferative pace that has resulted to an essential transformation in society, technology and business customs.

The way that individuals and businesses communicate and interact has radically changed. With the development of technology and the internet, people can connect almost instantaneously and with very little effort. Social media has come to play a huge part in the way that the world communicates with each other. In fact, a recent report shows that in a single month people spend over 25 hours on social networks (“The Digital Consumer”). With consumers committing that much time to social media sites, social networking has become an important aspect of everyday life for individuals—and businesses. Like most marketing activities, social media marketing poses some risk. However, it is advantageous for businesses to exploit this opportunity, and develop an effective and ethical marketing strategy that includes using social media as a marketing tool.

Social media is defined as a group of Internet-based applications which build on the platform of Web 2.0 and the contents of these applications can be modified by all users in a participatory and collaborative method (Kaplan and Haenlein, 2010). Social media creates a platform for companies to talk to their customers as a hybrid element of promotion mix. With the emergence of social media, the tools and strategies for companies to connect with customers have also changed (Mangold and Faulds, 2009). To adapt with the emergence of social media in the marketing, companies should have unique insights about these significances (Quan-Haase and Young, 2010). The significances of social media embody three main aspects which are technology, decision-making and purchase behaviors of customers.