CMI Essay Example | Topics and Well Written Essays - 1750 words

CMI - Essay ExampleWhat brook be seen in practice is various firms achieving competitive advantage in different ways. There is evidence, for example, that in industries where scale is considered to be very important, small-scale innovations crap completely opened up the competition, This became clear in the stagnating steel industry, where mini-mills grew rapidly in answer to the demand for all kinds f specialist products. In the Netherlands, large-scale shipyards were engaged in a struggle for survival--with all eyes focused on the government for subsidies--while at the same time specialist firms were successful in the fields f yacht-building and dredging. The great differences in favorableness between firms within the same industry be difficult to explain by resorting to neoclassical theory. (Rumelt 169-185) For these differences lie down in the introduction f innovative concepts, new combinations f production factors and the smart use f technologies. The internal side f the f irm plays a crucial part in this. Firms like Primark and McDonalds, for example, have developed specific routines and skills which are difficult for competitors to imitate. The existence f this sort f firm-specific competencies does not tally in very well with the cookbook metaphor f neoclassical economics. The new insights indicate that a sustainable competitive advantage can only be attained by creating new organization-specific knowledge.On the cutting edge f strategic management and evolutionary economics, a debate is currently winning place about new theories f the firm in which the special qualities f knowledge are incorporated. In these theories, static thinking is replaced by a more realistic process perspective. Concepts like restrain rationality (or even trial and error), path dependency and heterogeneity are all embraced. The role f soft variables like knowledge, culture and network relations is