The changing preferences and tastes that consumers have are satisfiedfrom the voluminous collection of products that they can choose from.The intense competition in the various industries has instigatedenterprises to make their products more appealing throughdifferentiation. They focus on making more sales while saving thecustomer’s money and applying value added utilities. According toAllio and Fahey (2012), there is a need for organizations tounderstand the core competencies and capacities to respond to theneeds of the consumers counter market threats and exploit theopportunities. For example, in the mobile phone industry, the needsof the consumers change continuously as they expected gadgets thatcan perform multiple functions besides calling and sending messages.Understanding this trend can enable companies to invest in developinguser-friendly phones. In addition, organizations must developcompetencies to ensure that they remain relevant in the market. Theycan do this by examining and re-aligning their internal structuresand capabilities.
Focusing on a culture of continuous learning can strengthenorganizations ability to address various needs in the market.According to Khachatryan, Joireman and Casavant (2013), it isimperative for the management to invoke learning when faced withexternal uncertainties in the market. For example, it can bechallenging to come up with the right differentiation of productsthat meets the needs of consumers in an effort to remain at theforefront of competition without involving various stakeholders. Suchinformation can be drawn from consumer feedbacks and expectations aswell as engaging workers and channel partners.
Identifying the role of knowledge management in an enterprise can bea major input in improving competencies of acquiring, developing,transferring, exploiting and filtering the information that can beapplied in the market to gain profits (Allio & Fahey, 2012). Thiscan be done by leveraging internal capabilities, alliances,acquisitions, outsourcing or a combination of the four competencies.According to Stettner and Lavie (2014), organizations use differentapproaches to developing and standardize their internal capacities.However, the authors are categorical that the organizations mustcultivate an environment that facilitates the acquisition andtransfer of knowledge to build competencies that can sustain a viableand competitive trend in the dynamic business world.
Allio, R. J., & Fahey, L. (2012). Joan Magretta: what executivescan learn from revisiting Michael Porter. Strategy &Leadership, 40(2), 5-10.
Khachatryan, H., Joireman, J., & Casavant, K. (2013). Relatingvalues and consideration of future and immediate consequences toconsumer preference for biofuels: A three-dimensional social dilemmaanalysis. Journal of Environmental Psychology, 34,97-108.
Stettner, U., & Lavie, D. (2014). Ambidexterity under scrutiny:Exploration and exploitation via internal organization, alliances,and acquisitions. Strategic Management Journal, 35(13),1903-1929.