Strategic Planning in the Small Business

Unit

3

Content

Process

Items

which survive this analysis

should be

Make sure everyone

understands this

placed in the restricted

domain of relevant

distinction.

business opportunities.

C. The role of

distinctive competency

A

distinctive competency

is any area,

Wiite this term

the black board.

on

factor,

or consideration that

provides a

business

a meaningful,

competitive edge

over its

business rivals.

Distinctive competencies

represent those

sets of factors that positively

distinguish a

firm 1rom

its competitors.

Distinctive competencies

may appear

in

either of two ways.

First, the competc-icy

may be present as

part of the firm's operations.

Second,

in some situations,

the compe­

tency may

need to be developed

or nur­

tured. In

this situation the

business

analyzes its competitive

environment,

scrutinizes

its internal resources,

and

carefully

and objectively

decides which

areas have the

best chance for develop­

ment.

It is difficult to list an

exhaustive set of

competencies.

However,

some typical Put

up TP 3.0a: Areas

of Distinctive

areas of distinctive

competence

can be Competence

Commonly Recognized

by

recognized.

They include

the following: Small

Businerses.

* Quality

" Service

" Location

" Filling

a Special Niche

Give examples of

each item.

" Price

246