Competitive Strategy

Competitive strategy.

Introduction

In the global environment competition, companies need always to have a long term action plan, in order to help the entire company to achieve their inside goals by a competitive strategy.

Many studies show that the external characteristics in the environment of an industry force a company to develop better and new plans to become more competitive. Therefore, many companies adopt different strategies to go further in the competitiveness industry in which they are involved.

In this essay I am going to talk about the competitive strategy and different types and times for a company to apply these types of strategies guided by competitiveness.

Hybrid strategy emphasize in structure and firm performance, reflected in low costs and differentiation of process, products, and performances in the company.

The contingency theory and resourced-based view are strongly related with the competitive strategy by seeking how organizational structure affects firm performance.

In a third article we are looking how organizational learning affect the competitive strategy if a company and it performance.

Using a model of dynamic capabilities we can see a strong relation between the innovation-based in dynamic capabilities and competitive strategy, this article explain how a company focus in service performed a project-oriented.

Five articles and journals have been selected to explain the patterns and trends of different theories and models related with competitive strategy that a company may performed to create better plans and achieve better results in their performance.

Article review.

(Ortega, Azorín , & cortés , 2010) Explains the characteristics of an hybrid competitive strategy that emphasize in low costs and differentiation to achieve a better performance in the companies by the method of planning. “Hybrid competitive strategy as an emergent construct formed from formative strategic dimensions rather than a reflective construct” (Ortega, Azorín , & cortés , 2010) meaning that it may exist a strong correlation between the organizational behavior and hybrid competitive strategy that impact in the performance.

(Ortega, Azorín , & cortés , 2010) Presents five hypothesis related with the hybrid competitive strategy to know if exist any relation between complexity, formalization, centralization, organizational behavior and hybrid strategy to do a better performance, the first is “formalization has a positive influence on hybrid competitive strategy (Ortega, Azorín , & cortés , 2010) after performing a study to know how strong is the relation between formalization and hybrid strategy, (Ortega, Azorín , & cortés , 2010) notice that there is a strong relation between these structural models. (Ortega, Azorín , & cortés , 2010) also notice that it may exist a strong affinity between complexity and centralization in a company but he realized that complexity have a relationship in a positive way and centralization in a negative way. (Ortega, Azorín , & cortés , 2010) Shows with his studies that a high level of complexity, formalization and lower level of centralization can affect in a positive way the develop of a hybrid competitive strategy in a company to become stronger.

(Santos -Vijande , Sanchez , & Tespalacios , 2012) Introduces a structural equation modeling to evaluate a Spanish manufacturing by the implementation of dynamic capabilities related to competitive strategy.

(Santos -Vijande , Sanchez , & Tespalacios , 2012) Define organizational learning as: “a process that comprises four main stages: information acquisition, knowledge dissemination, shared interpretation and organizational memory.”

According to (Santos -Vijande , Sanchez , & Tespalacios , 2012) Organizational learning is considered an important tool of implementation because it is a role that can adapt fast to the changing environment. This will lead the company to work faster and implement better plans of action related with their competitive strategy.

To survive in the competitive environment (Santos -Vijande , Sanchez , & Tespalacios , 2012) explain that the company may focus in the internal and external environment to do a better plan of action.

Therefore we can notice that the strategic flexibility has a strong relation in a positive way with cost leadership strategies to have a better performance and yield in the market.

After notice the significant growing of economies lead by service companies, (Weerawardena , Kennedy , & Salunke , 2011) studied the relationship between the dynamic capabilities of a service project-orientated company and innovation-based competitive strategy, realizing the service sector has grown in an exponential manner the last years, therefore, (Weerawardena , Kennedy , & Salunke , 2011) create a new model focused on the main strategies and process that those companies used.

After interview more than thirteen CEOs of project-orientated firms, (Weerawardena , Kennedy , & Salunke , 2011) realized that most of the firms used different models focused in learning capabilities, episodic learning and service entrepreneurial intensity.

This dynamic capabilities explain how a company creates new resources to turn these into competitive advantages to create value to this new ideas. (Weerawardena , Kennedy , &

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