▁Compet ence ▁mode ▁I ▁der ives ▁from ▁the ▁cogn itive ▁flex ibility ▁of ▁an ▁organization ▁to ▁conce ive ▁of ▁alternative ▁ways ▁of ▁creating ▁value ▁in ▁mark ets . ▁The ▁source ▁of ▁this ▁mode ▁of ▁compet ence ▁is , ▁in ▁ess ence , ▁the ▁collect ive ▁corpor ate ▁imagination ▁of ▁an ▁organization ' s ▁man agers ▁in ▁perce iving ▁feas ible ▁market ▁opportun ities ▁for ▁the ▁organization ▁to ▁create ▁value . ▁Compet ence ▁mode ▁I ▁depends ▁on ▁an ▁organization ' s ▁man agers ’ ▁ability ▁to ▁perce ive ▁market ▁needs ▁and ▁identify ▁specific ▁market ▁prefer ences ▁the ▁organization ▁might ▁serve , ▁to ▁determine ▁the ▁characteristics ▁of ▁products ▁and ▁services ▁that ▁can ▁satisfy ▁those ▁needs ▁and ▁prefer ences , ▁to ▁design ▁supply ▁ch ains ▁and ▁select ▁appropriate ▁distribution ▁channels ▁for ▁real izing ▁new ▁products , ▁and ▁ultimately ▁to ▁define ▁product ▁offers ▁that ▁will ▁be ▁perce ived ▁by ▁mark ets ▁as ▁having ▁attract ive ▁net ▁delivered ▁customer ▁value . ▁ ▁Compet ence ▁mode ▁II : ▁cogn itive ▁flex ibility ▁to ▁imagine ▁alternative ▁management ▁processes . ▁Compet ence ▁mode ▁II ▁results ▁from ▁a ▁second ▁form ▁of ▁cogn itive ▁flex ibility ▁of ▁man agers ▁to ▁conce ive ▁of ▁alternative ▁management ▁processes ▁for ▁implementing ▁strateg ic ▁log ics ▁identified ▁by ▁compet ence ▁mode ▁I . ▁The ▁manager ial ▁ab ilities ▁underlying ▁compet ence ▁mode ▁II ▁include ▁the ▁ability ▁to ▁identify ▁the ▁kinds ▁of ▁resources ▁( assets , ▁knowledge ▁and ▁capabilities ) ▁required ▁to ▁carry ▁out ▁a ▁given ▁strateg ic ▁logic , ▁to ▁create ▁effective ▁organization ▁designs ▁( alloc ations