Competitive Advantage Requires Organizational Awareness Of Internal And External Factors

Competitive Advantage Requires Organizational Awareness Of Internal And External Factors

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. Competitive advantage requires organizational awareness of internal and external factors in a relational context. Categorically, external factors are political, economic, sociocultural, technological, ecological, and legal in nature. Rothaermel defined the organization’s external environment as all factors with the potential to alter the competitive advantage, creating opportunities and threats; considering the global nature of trade and economies, this potential is amplified. After the Brexit Referendum passed, the value of the pound declined, subsequently impacting consumer confidence (bbc.com, 2016). This event encompassed political, economic, sociocultural, and legal factors that caused an upheaval for businesses in the United Kingdom and abroad.
Osterwalder and Pigneur (2010) described external factors of demand as the circumstances, with respect to design drivers and constraints, that reveal the business model (BM) position and provide a juncture for discerning adjustment; these factors empower the organization to deliberate on the impact of new trends, evaluate how the BM may evolve, and prompt innovation. The role of external factors serves to apprise the BM designer of trends and events significant to the organizational competitive advantage, affording the BM designer the opportunity to evaluate the current BM and determine if changes are necessary. Although it is too soon to determine if there are indelible adverse consequences of Brexit, the immediate impact of the devalued pound generated international attention. This event was a catalyst for businesses to examine their BM and address elements that are consequently inadequate to strengthen or improve the competitive advantage.
Osterwalder and Pigneur (2010) explaine...


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...esign changes.
Designing the appropriate model depends on the organizational structure and the value proposition. The different types of businesses (customer relationship, product innovation, and infrastructure) have differing economic, competitive, and cultural mandates (Osterwalder & Pigneur, 2010). Testing for launch and future uncertainty relies on unknown variables. Market acceptance is subject to the capriciousness of the market. Model evolution depends on reliable and sufficient feedback.
Osterwalder and Pigneur (2010) explain various ways to analyze the BM to overcome these challenges. Conduct a SWOT analysis of each BM component. Examine the environment through the scope of market analysis, competitive analysis, foresight, and macroeconomics. Finally, understand the objective of the design in response to the market: satisfy, introduce, improve, and create.

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