The Increased Competiveness And Agression Of Businesses Essay Example

of strategy, where capabilities indicate an organization's effective utilization of its resources. In this discussion, the author will concentrate on strategic capability and examine the similarities and differences between resources and competencies.

Strategic capableness refers to the fusion of an organization's resources and competences that are necessary for its survival and involvement in the industry.

The Relationship Between Strategic Capabilities and Competitive Advantage

In terms of resources, tangible resources are the visible and physical assets of an organization, such as buildings and personnel. Intangible resources, on the other hand, are invisible assets of an organization, such as knowledge. Physical resources encompass the visible resources of the organization, including machinery and production components, among others.

Fiscal resources involve cash and creditors and are used for daily operations. Human resources, on the other hand, include training, recruitment, skills, and knowledge in an organizational network. Meanwhile, intellectual resources consist of intangible assets like patents, trademarks, business systems, and customer databases. Resources are essential for cost-effective production or creating superior products/services. However, in a dynamic environment, tangible and intangible resources alone aren't enough to ensure survival and competitiveness.

The ability of an organization to effectively utilize its resources and competences in its activities and procedures is dependent on various factors. These factors include threshold resources such as IT waiter platforms, offices and installations, appropriate forces, and sufficient clients and providers. Additionally, threshold competencies such as account direction, general managerial skills, sophisticated ICT skills, and competent customers and providers also contribute to organizational effectiveness.

On the other hand, unique resources and competencies play a distinct role in enhancing an organization's competitive advantage. These unique resources include the largest online electronic

exchange platform, the eBay brand, first mover advantage, an active and vocal community of users, and the ability to learn from experience. Unique competencies include a unique form of history management that balances key control with decentralized community engagement, leadership skills in terms of board regeneration and maintaining consistency, electronic platform management skills, partnering on the internet in terms of deciding when and how to compete, and web 2.0 management skills.

It is important to note that threshold resources are essential for meeting the basic needs of clients in order for an organization to exist.Unique resources are resources that enhance and stabilize competitive advantage, making them extremely difficult for rivals to imitate and obtain in the market. Threshold competences refer to the activities and procedures necessary to meet customers' basic demands and establish a presence in a specific market. Unique competences are activities that reinforce and stabilize competitive advantage, making them highly difficult for rivals to acquire, copy, or obtain in a given market. Threshold Capabilities are the capabilities required to exist or remain in the market.

Firms that possess threshold capabilities lack innovation, have a limited focus on current customer needs, and are resistant to change. On the other hand, firms with competitive capabilities embrace change and proactively adopt new technologies ahead of their competitors. In today's business world, software for sales and workforce collaboration are considered innovative developments. These firms also strive to meet current customer demands while continuously improving their organizations.

Definition of Competitive Advantage

Competitive advantage refers to an organization's ability to outperform its competitors in terms of superior profitability, growth in market share, return on investment, and more (Campbell, Stonehouse and Houston, 2000, p.

324).

Stonehouse et al. (2000) highlight the importance of maintaining sustained competitive advantage (SCA) in business strategy. According to Johnson and Scholes (1999), competitive advantage can be achieved and preserved over time through the implementation of low-price, differentiation, or switching cost strategies.

Core competency refers to the accomplishments and abilities that enable an organization to gain a competitive advantage that cannot be easily replicated or obtained by others (Johnson, Scholes, & Whittington, 2008, ch. 3 p.97). Currently, many organizations view cost management as a crucial factor in achieving strategic capabilities advantage. To maintain low costs, managers need to focus on key drivers such as economies of scale, supply costs, product design, experience, growth, reducing unit costs, and leveraging first-mover advantage. Additionally, sustaining competitive advantage over time requires effective cost management and other important criteria for managers.

The text above emphasizes the importance of unique capabilities for an organization to achieve and maintain a competitive advantage. These unique capabilities should be valuable to customers, rare in the market, and difficult to imitate. It also highlights two factors that contribute to the sustainability of these core competences: their ability to outperform competitors and their complexity, which includes internal linkages and external interconnections. Additionally, the text mentions that core competences may be embedded in an organizational culture and history, and their causal ambiguity makes it challenging for rivals to imitate them.

The text discusses the two types of ambiguity: characteristic and linkage. It also highlights the complexity of adding value to clients, which makes it difficult to replicate. To maintain a competitive advantage, organizations must strategically position themselves by deploying activities, resources, and competences. Diagnosing strategic capability involves understanding various factors such

as value chain, value network, activity maps, and benchmarking. The SWOT analysis summarizes the analysis of the business environment and strategic capabilities. The text also provides a brief history of eBay Inc., an e-commerce company that operates eBay.com.eBay, a globally recognized company with physical facilities in over 30 countries, allows both individuals and businesses to buy and sell various products and services worldwide. According to Filley & Aldan (1980), this multi-billion dollar company has successfully established its presence across the globe.

The eBay website, founded in San Jose, is a marketplace where millions of collectibles, interior ornaments, contraptions, electronics, furniture, furnishings, equipment, vehicles, and other assorted points are listed, bought, or sold daily. eBay has expanded beyond its original auction format to include "Buy It Now" shopping, on-line event ticket trading, on-line money transfers, and other services. Additionally, in 2006 eBay launched its Business & Industrial category to break into the industrial excess business (Whitten, 1987 P 6).

Analytic model analysis of eBay Inc

eBay strategically maintains and promotes its success by fostering a highly motivated human capital. This is achieved by providing a favorable working environment that satisfies physiological needs, ensures safety in the workplace, and offers career growth opportunities for self-realization and self-esteem.

According to Cameron & Whitten (1983, p. 67) and Yukl (2010, p. 43), eBay has significantly enhanced its performance by prioritizing organizational goals and objectives. The company not only strives to satisfy internal customers but also endeavors to cater to the needs of external customers by providing a variety of products and services that can be conveniently accessed with a single click.

According to (Hedger, Nostrum & Starbuck, 1976 P 67), eBay offers a wide

array of products to meet the diverse needs and preferences of its customers. Statistical research conducted in the United States shows that eBay users are highly satisfied, which has contributed to the company's large market share. Additionally, eBay has successfully implemented communication strategies and channels to minimize risks related to online trading activities.

For instance, eBay offers a reliable and knowledgeable customer service that provides necessary information on various aspects of Internet trading. Additionally, eBay provides a secure online payment system that can be utilized by its customers. This has greatly reduced risks associated with check payments and carrying cash (Meyer, 1977 P 81).

SWOT analysis of eBay Inc

SWOT analysis is a evaluation process that considers both internal and external environmental factors that may impact the operations of a business. This includes assessing external factors such as opportunities and threats faced by the organization, as well as internal elements focusing on weaknesses and strengths. EBay Inc is an organization that has successfully integrated technological elements into its operations.

The country of operation for this organization may be dominated by a variety of strengths, weaknesses, opportunities, and threats (Hedger, Nostrum; A; Starbuck, 1976 P 89). Assessing the strengths possessed by eBay, it has attracted a large number of clients or stakeholders who greatly contribute to its overall performance. These stakeholders include current clients, supportive clients such as investors, and reliable employees. Additionally, eBay has established a strong financial foundation which has been instrumental in achieving its overall goals.

eBay has effectively managed customer needs and ensured prompt delivery of services and products, which has helped build a strong relationship with customers. This is especially important as most transactions on eBay

are conducted online, and people may be hesitant to trust virtual platforms with their financial matters. However, eBay has successfully gained the confidence of many customers through its operations (Zammuto & Cameron, 1985, p. 6).

eBay has achieved success due to various factors, such as its early entrance into the online auction industry. This has resulted in a trusted reputation among customers who value the convenience of buying goods without traveling. Consequently, numerous clients remain loyal and regularly revisit the site. eBay's business model is robust and continually evolving, with Meg Whitman playing a vital role in reshaping the company by establishing efficient operational connections. Additionally, eBay possesses a strong technological foundation.

Leveraging ICT, eBay utilizes Pay pal as a secure and convenient method of payment. However, the company faces various challenges. One such challenge is its poor organizational structure, which hinders its ability to effectively connect with customers. Providing excellent customer care often requires personal interaction, including the ability to read facial expressions. Furthermore, although eBay's website can be accessed globally via the internet, there are certain geographical areas where eBay services are unavailable.

There are several reasons contributing to the limitation of eBay services to certain parts. In addition to these limitations, eBay also faces various emerging threats. For example, the easy entry into internet trading systems has resulted in a large number of competitors, which is threatening eBay's operations (Gallos, 2008, p. 68).

Despite the challenges and threats faced by eBay Inc., there are several opportunities that the organization can effectively leverage to maximize its profits. For example, it can utilize the technological advancements in the digital world to expand its customer base. Additionally, eBay has

the opportunity to collaborate with various suppliers and stakeholders to improve its overall performance. This opportunity stems from eBay's strong financial position and its long history of operating in the internet-based services sector (Kast ; Rosenzweig, 1972, p. 78).

eBay's competitory advantage lies in its strong fiscal background and its ability to successfully implement new income generating strategies. Additionally, the company has diversified its products to further increase its profitability. With operations in over 30 countries, eBay is a multi-billion dollar company that facilitates the buying and selling of millions of items daily (Pierce, 2003 P 6).

The strategic capabilities of eBay can be summarized as follows: the creation and continuous updating of a highly effective business model that enables transactions between millions of users.

Additionally, eBay lacks inventory and does not have to handle production, packaging, and shipping of the items being sold. As a result, they do not require a large workforce to achieve their organizational objectives. Technical aspects are the primary cost driver for eBay.

They carry out tasks like taking care of waiters and websites. This is the eCommerce business model being maximized to its fullest potential. Revenue is generated from both business-to-consumer and business-to-business transactions. The income from auctions and transactions will continue to increase as the number of users grows.

Ebay has a strong business model that was redefined by Meg Whiteman to establish strong connections between operational activities. The company reported record net revenues in the first quarter of 2007, with a growth rate of 27% year over year. Operating income increased by 45% and represented 26.5% of net revenues. Non-GAAP operating income was $593 million, with a

33.6% operating margin and a 29% year-over-year increase.

The use of information and communication technology (ICT) is both strategic and operational for eBay. Setting up the initial server would have been a strategic move, but managing traffic is now considered operational. Integrating new versions of the Internet and its functionality is also seen as strategic. Adapting to high-speed broadband advancements in individual countries is currently strategic but may become less important over time.

Knowledge management in organizations goes beyond just data and information. It involves the sharing of experiences between individuals and groups within an organization. This sharing occurs through day-to-day activities and routines.If strategic capability is defined as competency (i.e.

Activities, as well as resources, play a crucial role in the relationship between strategic capability and organizational knowledge. The connection is particularly strong when robust (non-imitable) competences are seen as interconnected and integrated competences.

Moreover, the company involves their clients by requesting 10 Sellers and purchasers from all over the state to come to their main office every few months to discuss the company in depth.

it has a strong financial foundation that supports its overall goal achievement.

Sustainability and dynamic capabilities

The achievement of eBay's goals and objectives is directly influenced by the type of leadership and environment present within the organization.

Different directors and human resource organisers have various approaches to leadership, but ultimately their goal is to follow the mission without complacency and achieve the organizational goals. Being a leader in any business involves processes related to directing and guiding employees towards specific goals. This effort to ensure that the business is moving towards its vision includes effective employee motivation, adoption of suitable leadership structure and strategies, and timely communication with internal and external stakeholders (Clark, 2010). EBay has actively embraced technological measures to maintain a competitive advantage in its operations.

Illustration includes the incorporation of new modern packages and the usage of Internet security tools. Furthermore, developing future-oriented goals is also important in order to cater to the needs of clients (Gallos, 2008, p. 34). To effectively enhance the competency level of employees in eBay Inc., frequent trainings and seminars for IT employees are necessary. Additionally, online training and guidance manuals can greatly improve the performance level of eBay operations.
Organizational Structure
The organizing process leads to the creation of an organizational structure. This structure can be defined as the framework that determines how tasks are divided, resources are allocated, and departments are coordinated (Samson & Daft, 2009, p. ).

The administration's construction should

be designed to support the administration in achieving its mission efficiently and effectively. The mission of an administration can be defined by its mission statement, which answers fundamental questions about the organization's purpose. Mission statements are crucial for strategic planning efforts (Bart, 2001, p. 328).

According to Samson, A. and Daft (2009, p. 328), a visual representation of an administration's construction is through an administration chart. The structure is made up of three components: complexity, formalization, and centralization.

The concept of complexity pertains to the level of expertise possessed by employees in an organization, as well as how work is divided, the number of hierarchical levels, and geographic dispersion. Formalization, on the other hand, deals with the extent of rules and procedures, while centralization refers to the degree of decision-making authority (Holtzhausen, 2002, p. 325). The characteristics of organizational structure include specialization of work (the extent to which tasks are divided into individual jobs, also known as division of labor), chain of command (an unbroken line of authority that connects all individuals in the organization and specifies reporting relationships), authority (the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizational goals), and responsibility (the obligation to perform the task or activity assigned to an employee). It also encompasses span of managerial control (the number of employees who report to a supervisor), and both centralization (the concentration of decision-making authority at a single point, usually at top levels of the organization) and decentralization (the dispersed location of decision-making authority, typically at lower organizational levels). These dimensions establish the vertical hierarchy and determine how authority and responsibility are distributed.

Departmentalization defines

how employees in an organization are grouped (Samson & Daft, 2009). The three most prevalent generic organizational structures are the functional structure, divisional structure, and matrix structure. Additionally, there are hybrid structures consisting of network structure and team structure. The functional structure is directly derived from the bureaucratic structure and is centered around a group’s function or specialized activities within an organization, such as sales and marketing, finance, and operations.

The effectiveness of the construction is based on the division of labor. Smaller to moderate-sized organizations with limited merchandise ranges tend to favor the functional construction (Martinsons ; Martinsons, 1994, p. 24). Advantages of the functional construction include efficient usage of resources, economies of scale, in-depth skill specialization and development, career advancement within functional sections, top manager direction and control, excellent coordination within functions, high-quality technical problem solving, and being best suited for one or few types of products. On the other hand, disadvantages of the functional construction include poor communication across functional sections, slow response to external changes and lagging innovation, decision-making concentrated at the top of the hierarchy leading to delays, difficulty in determining responsibility for problems, limited employee perspective on organizational goals, limited general management training for employees, and less innovation (Samson ; Daft, 2009) (Duncan, 1979). This construction is typically adopted by companies as they grow larger and begin to diversify their product line.

The company divides its operations into separate units or small companies based on different merchandises or markets. This division allows for fast response and flexibility in an unstable environment, fosters concern for customers' needs, allows for excellent coordination across functional sections, facilitates easy identification of responsibility for product issues,

emphasizes overall product and division goals, and develops general management skills. However, there are disadvantages to this divisional structure, including duplication of resources across divisions, less technical depth and specialization within divisions, poor coordination across divisions, less top management control, competition for corporate resources, elimination of economies of scale in functional sections, and difficulty in integrating and standardizing across product lines. The matrix structure was a popular structure in the 1970s.The purpose of this was to combine the benefits of both functional and divisional structures.

The matrix construction involves a double concatenation of bid, with functional sections focusing on economic systems of specialisation and undertaking teams focusing on specific merchandises or markets. Each employee in the matrix construction is responsible for one functional section and one undertaking director, creating the double concatenation of bid. The advantages of matrix construction include more efficient resource usage, flexibility, development of management skills, interdisciplinary cooperation, enlarged tasks for employees, and suitability for moderate-sized organizations with multiple products. However, there are also disadvantages such as frustration and confusion from the double concatenation of bid, high conflict between the two sides of the matrix, numerous meetings and discussions, the need for human relations training, and power dominance by one side of the matrix. On the other hand, a team-based structure consists of horizontal teams that work together and directly interact with clients to achieve the organization's goals.

344 ) . Advantages of team construction:

• Reduced barriers among departments, increased communication
• Less response time, quicker decisions
• Better morale, enthusiasm from employee engagement
• Reduced administrative operating expense
• Less absenteeism

Disadvantages of team construction

• Double loyalties and conflicts
• Time and resource spent on meetings
• Unplanned decentralization ( Samson ; Daft, 2009 ) ( Harris, 1992 )

Network construction: Advantages:

• Global competitiveness
• Workforce flexibility/challenge
• Reduced administrative operating expense

Disadvantages:

• No hands-on control
• Can lose organizational control
• Employee loyalty weakened

Analyzing eBay current and the best organizational structure for the eBay Inc

eBay's organizational structure is a source of competitive advantage as it is the basis for the company's ability to process information efficiently and effectively. The organization's process in utilizing the best organizational model conduc