Competitive Advantage Case Study Example | Topics and Well Written Essays - 2000 words

Competitive Advantage - Case Study Example This paper will compare and contrast the competitive advantages of renowned engine manufacturer Rolls-Royce Plc (Rolls-Royce) and retail store giant Tesco Plc (Tesco). Traditionally, the competitive advantage business organizations can be fully identified by conducting a value chain analysis. However, recognizing the numerous changes in the businesses' market environment, this paper will also complement value chain analysis with a method introduced by Shawn Cartwright, the value web analysis. It should be noted that this tool brings into consideration the analysis of competitive advantage of dotcoms or firms whose operations are conducted online or whose brick and mortar strategies are complemented by online presence (Cartwright and Oliver 2000). This report will be organized as follows. The first section will take a look at the operations of Rolls-Royce Plc. A brief organizational profile will be presented together with the company's identified core competencies. The paper will then evaluate Rolls-Royce's competitive advantage in light of the value chain and the value web analysis. The second section will also evaluate Tesco Plc in the same manner. This paper will conclude with a comparison and contrast of the previously identified competitive advantages. Rolls-Royce is currently the world's second largest airline engine manufacturer beh... Aside from aero-engine, the company is also involved in other industries like defence, marine, and energy markets. The business organization traces its origin in 1971 and was founded by Henry Royce and CS Rolls. With its humble beginning, it has now ascended in the global business marketplace with its cutting edge technology and diverse product offerings. The company is not just a provider of high-quality products but also offers unmatched after sales service to its clients. Its market base spans over 120 countries around the globe, becoming a significant supplier of engine to important customers worldwide. Also, in order to complement its product, Rolls-Royce has established online presence through Aeromanager in offering aftermarket services. 2.1 Core Competencies The success of Rolls-Royce in the global aero-engine industry is attributed to its core competencies. A core competence, according to Prahalad and Hamel (1990) is something that a firm can do well and meet three specific conditions: "it provides customer benefit; it is hard for competitors to imitate; and it can be leveraged widely to many products and market." A company's core competencies are the capabilities which the company needs in order to build a competitive advantage. In the case of Rolls-Royce, its core competency is apparently in the production of engine. It should be noted that the expertise of the business organization in the creation of aero-engine is applied to a wide range of industries where it operates such as defence, marine, and energy. With the company's expertise in the production of a single product engine, Rolls-Royce, with its technological is able to transform this engine into one which can be used in other industries. It should be noted that all the end