Academic journal article IUP Journal of Business Strategy

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Academic journal article IUP Journal of Business Strategy

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Article excerpt

The concept of competitive advantage has been the cornerstone of strategy literature for many years. Michael Porter prescribed that firms can achieve competitive advantage either through cost leadership or differentiation. However, this notion was criticized. Experts feel that firms that are successful are anyway achieving success because of their unique approach to business. In many textbooks, the concept of competitive advantage means 'achieving success'. The authors, Makhmoor Bashir and Rajesh Verma, in the first paper, "Why Business Model Innovation Is the New Competitive Advantage", take the discussion forward by proposing that competitive advantage alone will not suffice, and to succeed, firms must follow 'Business Model Innovation' to achieve competitive advantage. The authors are of the view that duplicating a business model innovation is difficult when compared to copying a product/service. The traditional version of competitive advantage, experts feel, was relevant only for mass markets where one uniform product/service made sense. Today this notion of uniformity is outdated. Executives have started spending more time on business model innovation as they believe it to be a more critical source of competitive advantage, besides being responsive to environmental shifts.

Banks are considered important engines for economic growth in any country. The banking industry is going through challenging times - rising competition among private and public sector banks, rising customer expectations of services rendered and regulatory pressure to reduce nonperforming assets are some of the more important challenges. In such a backdrop, banks have very few options. They are expected to move beyond the traditional intermediary role and deliver customer-friendly services backed by technology. The authors, Dilpreet Singh, Harpreet Singh and Namrata Sandhu, in the second paper, "Service Development Strategies Employed by Public and Private Sector Banks in India: A Comparative Study" look at how, from a banker's perspective, service development strategies are understood, designed and delivered. The authors compared 21 public and 12 private sector Indian banks in their study. The results of the empirical study, in which 18 different services were shortlisted and analyzed, reveal subtle differences among the two - public and private sector banks. For private sector banks, quality of staff was an important consideration which was not the case with public sector banks. …

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