Amana's Competitive Advantage

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1.1.2 Current Approach to competitive advantage at Amana Takaful
There are likely many contributing factors that influence a firm 's competitive position and it is likely a combination of many VRIN resources and capabilities that will determine the type of company product or service differentiation. As narrated by porter in his theory of porter’s generic competitive strategies (Appendix 1) there are 2 basic types of CA a firm can possess. Amana adopts a hybrid strategy; these ‘hybrid’ strategies are the ones which combine low cost and differentiation elements (Gopala Krishna & Subramanian, 2001; Proff, 2000). By this, they seek to achieve differentiation and low cost simultaneously. The combination of the strategies help Amana to adapt quickly to environmental changes and learn new skills and technologies. This would more effectively leverage core competencies across business units and product lines and would also help produce products with differentiated features or characteristics that customers’ value and provide these differentiated products at a low cost, compared to competitors ' products
With reference to the 2 approaches to achieve competitive advantage. It is difficult to distinguish if Amana adheres more to a positioning approach; positioning the business to fit the environment requirement or a resource based approach; competing by the procession of distinctive and unique resources.
Recommendation: It is highly recommended for Amana to establish a position in

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