A company is always in the dire need to outperform itself and its existing competitors to be in forerunner at all times, with the view of prolonged existence in mind (Carlock and Ward, 2001). Hence, how the company designs its strategy would be its deciding factor as to how it would perform in the market. For this, the company would need to have:
• Resources, tangible and non-tangible, that is exploited for its various occupations.
• Competency or the capability to optimally deploy the resources for fruitful returns.
A company’s advantage would always be its unique resources and its core competences. These two areas would help determine how the company can out-perform and how well it can do so. There is actually a directly proportionate relationship between these two aspects, when the two complement each other. This is an invaluable combination and has a lot of implication on the company functioning as it helps the same to use its very core ‘strength’ for attracting consumers ultimately.
Value chain refers to the activities within and around an organisation which helps to produce the product (Chase, 2006). This necessitates the company to review its work culture and either modify or incorporate positive and rewarding practices. It is a diagnosis of the ‘strategic capabilities’ that the company has taken up as its modus operandi.