Dynamic Capabilities at Nlng Nigeria LNG Is

Dynamic Capabilities at NLNG Nigeria LNG is an extraction and shipping company focused on capitalizing on the natural gas resources located in the country of Nigeria, which are considerable. Founded in 1989 and truly beginning operations in 1995 after a diversity of investors provided the necessary capital, the company is still growing, becoming ever more successful and efficient at tapping the large amount of reserves and resource potential that the natural gas deposits of the country represent (NLNG 2011).

The company has largely devoted itself to diversifying its product offerings through enhanced extraction and refining techniques, as well as improving the delivery methods for its products through its control of the outgoing supply chain and its use of both gaseous and liquid-form natural gas, which also increases the number of transportation options and the efficiency of shipping (NLNG 2011). These innovations have been a major factor in the success and profitability of Nigeria LNG (NLNG 2011). According to Teece et al.

(1997), private wealth generation for many corporations is dependent on internal technological and organizational refinement, with an emphasis on he seeking out of and adapting to new opportunities. This is in contrast to companies that attempt to create greater profitability through strategic means meant to directly engage with competitors instead of focusing on internal change and growth (Teece et al. 1997). The changes and innovations that have occurred at Nigeria LNG are definitely indicative of the focus recommended by Teece et al.

(1997), as the company's strategy has clearly been focused on internal improvements and technological advancement rather than reacting to/provoking its competition. The internal awareness and analysis of a company has long been an important part of a full consideration of the company's value and potential, as is demonstrated by the fact that it makes up half of the popular "SWOT" analysis framework and tool (Barney 1995).

This half -- the strength and weaknesses of a company -- has been seriously neglected in terms of research and analysis tools that have been developed to accurately and comprehensively render an analysis of these features, when compared to the abundance of tools available for opportunity and threat analysis (Barney 1995).

Questions of the value, rarity, and limitability of a company's products or services is a key way to determine their inner qualities in a way that is also reflective of external environments, and from this perspective as well Nigeria LNG is doing quite well, as its largely untapped reserves are reaching the market at a time when many other reserves are believed to have reached or surpassed their peak production capacities, creating concerns for future supplies (Barney 1995; NLNG 2011).

Other researchers have found that in what are termed "high velocity" industries, focusing on things like product differentiation, meeting challenges in a proactive manner, and reconfiguring operations (Wirtz et al. 2007). Again, it is through a focus on these internal elements rather than explicitly and directly engaging in external competition that companies achieve success, according to this framework (Wirtz et al. 2007).

Leadership at Nigeria LNG has been dedicated to developing innovative and company-specific solutions to the challenges that arise, and has diversified as rapidly as possible to capitalize proactively and efficiently, matching this framework quite closely (NLNG 2011).

Another interesting trend in competition and the achieving of a competitive advantage that has been identified in the current era is the seeming eradication of sustainable advantages in many industries, and the need for firms to capitalize on more temporary advantages in a flexible and adaptable manner in order to remain truly effective and profitable (D'aveni et al. 2010). This is not something that appears to be directly related to Nigeria LNG's situation, as the worldwide demand for natural gas products exceeds current global supply -- partially due to supply control.