What makes a firm successful? What sets an organization apart from others? What capabilities does a company possess that make it distinctive? What attributes does a company have that cannot be replicated?
John Kay, author, “Foundations of Corporate Success,” notes that the best businesses derive their strength from a distinctive structure of relationships, between all facets of the enterprise. He goes on to explain that these relationships should be nurtured to promote continuity and stability along with preserving the flexibility to respond to change. According to Kay, there are three distinctive capabilities that can be possessed to create value and a competitive advantage through the relationships he describes in his book.
3 Distinctive Capabilities
Architecture – The structured relationships between employees, suppliers and customers
Reputation – The enterprise on all levels
Innovation – Innovative capabilities translated into competitive advantage