#HR Word #Distinctive #Capabilities

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

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