Posted in Human Resource Terms, Total Reads: 11417
Definition: Distinctive Capabilities John Kay
This is a theory given by John Kay. According to him, distinctive capabilities are a relevant factor of an organization’s resources. Companies with distinctive capabilities have attributes, which others don’t have and cannot replicate.
According to John Kay, there are three distinctive capabilities which a company can possess to achieve competitive advantage through relationships:
Architecture: It is a structure of relational contacts within or around the organization with customers, suppliers and with employees
Reputation: This includes customer’s own experience, quality signals, guarantee, word of mouth spreading, warranty, association with other brands and staking the reputation, once it is established
Innovation: Provided that the innovation is translate d to competitive advantage successfully