Reference no: EM133515900

I agree with the idea that organizational leaders should design strategies to leverage their firm's resources and capabilities. The resources and capabilities of a company are the basis upon which a long-term competitive advantage can be established. These internal assets, which include tangible and intangible resources, distinctive skills, and organizational capabilities, help the firm give value to consumers and surpass competitors. Leaders can link their strategic direction with their fundamental strengths and competitive advantages by structuring strategy around the firm's existing resources and skills.

Leaders can find opportunities that correspond with their existing strengths and allocate resources more efficiently when they build a strategy with a focus on exploiting resources and skills. This method helps to avoid misalignment between strategy and resources, lowering the risk of pursuing initiatives that the business may not be able to properly execute. Leaders may establish a strategy that is realistic, achievable, and tailored to the organization's specific characteristics by leveraging current resources and competencies.

It is vital to emphasize, however, that strategy and resources are not static. While exploiting existing resources is critical, leaders must also be willing to alter and improve their organization's resources and capabilities in order to react to changing market conditions and emerging opportunities. This iterative process ensures that the organization maintains its agility and long-term competitive edge.

In conclusion, developing a strategy to leverage a firm's resources and competencies is critical for establishing long-term competitive advantage. It enables executives to connect their strategic direction with their core strengths, maximize resource allocation, and boost their chances of success. Nonetheless, staying adaptable and consistently developing and adjusting resources and capabilities in response to changing market conditions is critical.

But do you think it is same for ever industry ?

Few might take another approach and do really well . What are your views in this ?