Identifying Strategic Capabilities in the Formation of Transient Competitive Advantage in Beauty Salons

Aim and Introduction:
 In today's turbulent and complex environment, businesses face intense competition. To thrive in this landscape, companies must differentiate themselves and continuously strive to present innovative ideas. Businesses that adhere to conventional practices and fail to adapt to changes will be driven out of the market. Managers must understand that in today's fast-paced and ever-changing environment, they should capitalize on fleeting opportunities while considering their unique capabilities and strengths to differentiate themselves from competitors. According to researchers such as Rita McGrath (2013), emphasizing the sustainability of competitive advantage for businesses in an environment where customer needs and preferences are constantly changing can lead to failure in maintaining that advantage. She argues that change is a common phenomenon in the business environment. The traditional principles of strategy, which were developed during periods of stability, are becoming obsolete for contemporary companies. Consequently, there is an urgent need for a new approach that can provide more flexible practices, as industries are consistently affected by technology, globalization, and the digital revolution. Transitory competitive advantage is characterized by its limited duration, signifying that it is not intended to endure indefinitely. This distinction profoundly influences how a company should strategize for long-term success. Unlike a traditional sustained competitive advantage, which assumes that such advantages can be maintained indefinitely, a firm with a sustained advantage emphasizes reinvesting in the barriers that safeguard its business. The most successful companies establish robust defenses to ensure long-term protection. However, it is acknowledged that no competitive advantage is permanent, as it tends to be transient. As a result, firms shift their focus from merely protecting existing barriers to continuously transforming and adapting to the emergence and decline of competitive advantages. For this purpose, the current study has been conducted to identify strategic capabilities that contribute to the development of a transient competitive advantage.
Methodology: In the present study, qualitative methods and thematic analysis were prioritized by the researchers to gain a comprehensive understanding of the existing issues and to identify strategic capabilities within the field of study.
To collect research data, semi-structured interviews were conducted with 11 managers of beauty salons in Ilam City, who were purposefully selected. In the data collection process, efforts were made to ensure that participants not only had experience managing beauty salons but also possessed the necessary expertise at various levels within the beauty industry to yield more reliable results. The interviews continued until theoretical saturation was achieved. At the beginning of each interview, the purpose of the research was explained to the participants, followed by the presentation of the primary questions. Since the interviews were semi-structured, additional questions were posed to clarify any ambiguities arising from the responses. Lincoln and Guba's method for establishing trustworthiness was employed to evaluate the credibility and quality of the present study, which encompasses four dimensions: credibility, transferability, dependability, and confirmability. Furthermore, content validity ratios (CVR) and content validity indices (CVI) were utilized to assess the validity of the final model. The results indicated that the content validity ratio was 0.63, while the content validity index was 0.81.
Findings: After conducting the interviews, data analysis was performed using thematic analysis. Ultimately, following the coding process, the resulting concepts were categorized into 70 Basic Themes, 26 Organizing Themes, and 5 Global Themes. These main themes include: 1. Professional Leadership and Management: The significance of effective leadership and strategic management practices in guiding teams and enhancing performance. 2. Heterogeneous Development of Human Resources: The emphasis on diverse and tailored development programs for staff to improve skills and competencies relevant to the business. 3. Ethics and Development of Social Capital: The importance of ethical practices and the cultivation of social networks in fostering trust and building a positive reputation within the community. Quality Improvement and Provision of Creative Services: The importance of continuously enhancing service quality and providing innovative solutions to meet customer expectations. Flexibility and Market Orientation: The capacity to adapt to market changes and align services with evolving consumer demands.
Discussion and Conclusion: The insights gained from this study emphasize that identifying and developing strategic capabilities is essential for businesses aiming to navigate the complexities of today's market. Companies must focus on leveraging their unique competencies to fully capitalize on the transient opportunities that arise. Understanding these capabilities is a fundamental component of developing a comprehensive business strategy. Having a deep understanding of strategic capabilities enables businesses to develop an optimal combination of strengths. This, in turn, facilitates informed investments in enhancing existing capabilities while also fostering the development of new ones. Furthermore, it allows organizations to phase out resources allocated to capabilities that no longer align with their strategic objectives. Moreover, the research findings illustrate that for a beauty salon to thrive in a competitive market, it is essential to develop and strengthen strategic capabilities that enhance productivity and add value. Salon management must adopt a broader perspective that extends beyond the confines of their immediate industry. This mindset allows them to explore new opportunities and establish barriers to entry that prevent competitors from easily infiltrating their market. In today's complex and dynamic business environment, the pursuit of a temporary competitive advantage is not just an option; it is a necessity. By concentrating on strategic capabilities that emphasize professional leadership and management, the diverse development of human resources, ethical practices, the enhancement of social capital, quality improvement, the provision of innovative services, and adaptability to market demands, beauty salons can establish a strong presence in their industry. The identified capabilities offer a framework for beauty salons, allowing managers to recognize the elements that can improve their performance and help them achieve a competitive advantage. To effectively leverage the components identified in this research, it is crucial to thoroughly examine and analyze the environmental conditions and to adapt the application methods based on these conditions, as well as customer preferences and needs. Employing these capabilities enables beauty salon managers to consistently prioritize creativity and innovation, making it challenging for competitors to predict or replicate their performance. Consequently, this enhances the salons' appeal from the customers' perspective.