SourcingSpider

Distinctive Capabilities 

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