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Under a Creative Commons license Open access AbstractThe wine sector in Europe has undergone a major change of trend in recent years, especially in Spain. On the one hand, the surface area has been reduced, but the production has been maintained by restructurings and improvements made in exploitation techniques. On the other hand, consumption has diminished causing a significant increase in competition. The Spanish wine sector is formed mainly by small and medium-sized firm, which is representative of the size of existing companies in Europe. This article aims to analyze the relationships between the competitive strategy, resources and capabilities of the firms, analyzing their technological and managerial capabilities, with business performance. 339 companies of the wine sector in Spain have been studied, differentiating between individual firms, cooperatives and mercantile companies. The results reveal that resources and capabilities along with strategies define competitive advantage, but their relationship and importance is different for each type of company. KeywordsCompetitive advantage Resource based view Strategy Wine industry Cited by (0)© 2018 UniCeSV, University of Florence. Production and hosting by Elsevier B.V. Capability-based strategies are based on the notion that internal resources and core competencies derived from distinctive capabilities provide the strategy platform that underlies a firm's long-term profitability. Evaluation of these capabilities begins with a company capability profile, which examines a company's strengths and weaknesses in four key areas:
Then a SWOT analysis is carried out to determine whether the company has the strengths necessary to deal with the specific forces in the external environment. This analysis enables managers to identify:
The picture identified by the SWOT analysis helps to suggest which type of strategy, or strategic thrust the firm should use to gain competitive advantage. Stalk, Evans and Schulman (1992) have identified four principles that serve as guidelines to achieving capability-based competition:
Capability-based strategies, sometimes referred to as the resource-based view of the firm, are determined by (a) those internal resources and capabilities that provide the platform for the firm's strategy and (b) those resources and capabilities that are the primary source of profit for the firm. A key management function is to identify what resource gaps need to be filled in order to maintain a competitive edge where these capabilities are required. Several levels can be established in defining the firm's overall strategy platform (see figure). At the bottom of the pyramid are the basic resources a firm has compiled over time. They can be categorised as technical factors, competitive factors, managerial factors, and financial factors. Core competencies can be defined as the unique combination of the resources and experiences of a particular firm. It takes time to build these core competencies and they are difficult to imitate. Critical to sustaining these core competencies are their:
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Find us onWhat are capabilities that lead to competitive advantage?Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service.
What are competitive capabilities?Competitive capabilities have been defined as a plant's actual performance relative to its competitors, with the most commonly investigated capabilities being quality, delivery, flexibility, and cost.
What is competitive advantage of a company?A competitive advantage is anything that gives a company an edge over its competitors, helping it attract more customers and grow its market share.
What is capability advantage?Competitive Advantage vs Distinctive Capability. Competitive Advantage. Distinctive Capability. Definition. A superior position or business capability that gives a firm an advantage over the competition.
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A is a capability the company is so good at that it provides the company a competitive advantage
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