Abstract

This study was carried out to investigate competitive capabilities of firms operating in the logistics industry. The
objective of the research was to study the effects of strategic elements associated with competitive capabilities
on corporate image, profitability, and growth. Key strategic elements for building competitive capabilities were
proposed to consist of service quality, marketing capabilities, and management capabilities. The results suggest
that the firms’ first priority level in building competitive capabilities must rest on rendering reliable and speedy
services, providing varying services, and offering attractive prices. The second priority level is to provide rapid
customer response, make service facilities available and attractive, make sure that service location is convenient
for access, and utilize up-to-date IT to improve service operations.

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