Audi's Strategic Capabilities - Essay Example

The competitive advantage of an organization is the unique quality that its rivals firms do not possess. These competitive advantages can be attained in any area such as production, marketing, or customer relationship management. Firms that possess these competencies in more fields as compared to that of its rivals are said to have a competitive edge over others and they are likely to succeed more in relation to its competitors. As regards Audi is concerned, it has built over time a highly effective and efficient multichannel customer care center across the world which helped the firm to be effective in individualized marketing campaigns, customer process costs.

This has further reduced the lead-processing by more than 80 percent. Discusses how the concept of organizational knowledge relates to strategic capability and how it might contribute to the competitive advantage of organizations. Organizational knowledge is the aggregate acquaintance accumulated through systems, routines, and activities of sharing across an organization. As such it is carefully accompanying to what has so far been discussed as the competences of an organization. Organizational knowledge has become so important because of several reasons.

In the modern business environment organizations have become so complex and larger, as a result of people need to share their knowledge over a wide sphere of activities and departments. Moreover, the information technology has improved dramatically so as to pave the way for more accurate and real-time knowledge processing and sharing. Consider the ways in which strategic capability might be analyzed. First, consider the concept of the value chain and value network as ways of understanding which activities add value and which do not.

Conclude with a SWOT from the point of view of understanding strategic capability in relation to competitors.