Through the process of knowledge management, companies should assess the right combination of resources and capabilities in the context of a strategy to implement, develop and acquire. Before framing a strategy, companies should analyze the industry and understand industry parameters (e.g. growth rate, competitive structure) in order to determine the attractiveness of competition.
KM initiatives can then be designed and implemented based on the essential knowledge assets that have to be developed to support the company’s competencies in performing critical business processes. Companies should primarily focus their efforts on harnessing existing knowledge and creating/acquiring new knowledge in the areas and activities, which would provide sustainable competitive advantage.