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Value chain - Essay Example

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Explain how, or if, these competencies result in a competitive advantage that is valuable, rare, and inimitable.
Google is multi-billion dollar organization that deals in internet…
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Value chain
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Value chain

This paper discusses the core competencies of Google and how they provided the company with a competitive advantage in a market that was undefined, undifferentiated and had enormous number of potential competitors.
Core Competencies are those capabilities or products of the organization that form the central base of its operations, or on which the organization can add on or build further its products or services (Campbell and Luchs, ). It is that set of capabilities that are central to the organization and that form the inner platform on which it can build the business further. In the case of Google, its core competency is the ‘Internet Search’ ability. ‘Internet Search’ is not only the basic format for Google on which the multi-billion dollar organization initially started, but, it also forms a core part of its additional business operations like Google AdWords, Google AdSense, Google Applications and other innovative business models that Google has developed overtime. The Internet search capacity is based on accuracy, credibility and speed at which Google is able to deliver its search results – and its ability to do so better than its competitors makes it the favourite search engine among the customers and determines the business revenues that it can generate on add business like AdWords, AdSense etc.
Distinct Competencies is a related concept to core competency, and it again means a set of distinct capabilities that make the organization differentiated and better at doing things than its competitors. In the case of Google, its distinct competencies that underpin its Search Engine operations are its technology, its highly trained and creative workforce, and its innovative and creative approach to making Internet search quicker and accurate and its commitment to balancing ethics and personal freedom in its online operations.
A firm is said to have a competitive if it is able to ... Read More
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