As indicated by Barney (2011), distinctive competencies are
the actions taken or performed by a company that inevitably sets them apart
them from the competitors in the market.
Previously mentioned in a prior post, Medtronic has a uniquely
placed competency: patents, and lots of them.
Medtronic possesses an immense value in these patents, and
what’s more astonishing is how dynamic this portfolio of patents remains to this
day. The ability to acquire patents boils down the Medtronic’s precision
approach to forecasting and understanding even the most subtle of trends. The
large market capitalization translates to a large treasure chest of money
stashed away. These funds allow Medtronic to expand product lines or even develop
new ones by garnering key patents without reluctance. Medtronic has effectively
removed a barrier to entry in the market by throwing mountains of money into
research and development, and supply chain analysis.
Medtronic is fully aware that it will require both external
and internal resources to create an environment ripe for patent or competition
(new entrants/startup) acquisition. The organization is a leading competitor,
so why allow stasis when you can be head honcho in the market?
(United States Securities and Exchange Commission)
Sources:- Barney, J.B. (2011). Gaining and Sustaining Competitive Advantage, 4th ed. Prentice Hall: Pearson.
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