How firms gain competitive advantage in the changing business dynamics Essay

How firms gain competitive advantage in the changing business dynamics - Essay Example The intention of this study is the change management that has increasingly become key element of competitive advantage for the business organizations in the current environment of volatility and rapidly transforming socio-economic and political imperatives. The need to identify the drivers of change and incorporating the same within the business strategies by organizational leadership has become top priority for mot only to succeed but also to survive. The five authors discussed in the paper believe that changes are good for the firms and firms which have flexible approach are better able to absorb changes and surge ahead of others. In the highly competitive market, firms need to leverage their competencies for competitive advantage. The various modules and mechanisms of evaluating and analyzing the performance metrics become highly critical factors for success of the firm. The internal and external exigencies influence the performance of the firms and therefore need to be analyzed, evaluated and exploited for gaining leverage against their rivals in the industry. Indeed, the firms survive or fail in the competitive market mainly because they either unable to anticipate changes in the environment or failed to exploit the opportunities that were offered by the changes to survive and gain competitive edge. The visionary outlook of the leadership and the innovative approach of the firms are vital inputs that facilitate and create opportunities to maintain their niche market position. The paper would primarily be evaluating the works of five authors who have introduced radical concepts in the business strategies to cope with the environmental changes.... The paper would primarily be evaluating the works of five authors who have introduced radical concepts in the business strategies to cope with the environmental changes. Section 1 What is change and how companies cope with changes Change is inevitable and irreversible process that provokes reaction and forces people out of their comfort zone. Most importantly, impact of change becomes most visible when it is viewed adversely. Bateman and Zaithaml (1990) stress that organizations need to change because the environment within which they operate is constantly changing. The organizational leadership therefore becomes the vital ingredient that prepares and motivates people to become flexible. It not only helps them to adopt changes but also to look for opportunities in contextual changes which can be exploited for improving their productivity and outcome. As the following authors assert, changes become enabling factors when they are explored for opportunities. Indeed, the authors have dif ferent perspective on change and change management. Change management has become a critical issue for firms. They emphasize that it helps them to understand, anticipate, evaluate and analyze changes to identify the drivers of change and explore opportunities for exploiting them. They believe that changes are good for the firms and firms which have flexible approach are better able to absorb changes and surge ahead of others. Some of the mechanisms that are evolved to cope with changes are: fostering business alliances; using technology; thinking out of the box; being innovative through new development and R&D; creating learning environment; exploiting human