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    Core Competence

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    meeeela
    The document discusses analyzing a firm's internal environment to understand its resources, capabilities, and core competencies. It describes discovering a firm's strengths and weaknesses through examining what it can do well and what gaps exist. A firm's resources include tangible assets like finances and intangible assets like reputation. Capabilities refer to how it uses resources, and core competencies are strategically valuable capabilities that create competitive advantage if they are valuable, rare, costly to imitate, and non-substitutable. Value chain analysis identifies where in a firm's activities resources and capabilities can add value.

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    Core Competence

    Uploaded by

    meeeela
    12 views27 pages
    The document discusses analyzing a firm's internal environment to understand its resources, capabilities, and core competencies. It describes discovering a firm's strengths and weaknesses through examining what it can do well and what gaps exist. A firm's resources include tangible assets like finances and intangible assets like reputation. Capabilities refer to how it uses resources, and core competencies are strategically valuable capabilities that create competitive advantage if they are valuable, rare, costly to imitate, and non-substitutable. Value chain analysis identifies where in a firm's activities resources and capabilities can add value.

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    The document discusses analyzing a firm's internal environment to understand its resources, capabilities, and core competencies. It describes discovering a firm's strengths and weaknesses through examining what it can do well and what gaps exist. A firm's resources include tangible assets like finances and intangible assets like reputation. Capabilities refer to how it uses resources, and core competencies are strategically valuable capabilities that create competitive advantage if they are valuable, rare, costly to imitate, and non-substitutable. Value chain analysis identifies where in a firm's activities resources and capabilities can add value.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    12 views27 pages

    Core Competence

    Uploaded by

    meeeela
    The document discusses analyzing a firm's internal environment to understand its resources, capabilities, and core competencies. It describes discovering a firm's strengths and weaknesses through examining what it can do well and what gaps exist. A firm's resources include tangible assets like finances and intangible assets like reputation. Capabilities refer to how it uses resources, and core competencies are strategically valuable capabilities that create competitive advantage if they are valuable, rare, costly to imitate, and non-substitutable. Value chain analysis identifies where in a firm's activities resources and capabilities can add value.

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    of 27

    The Internal Environment:

    Resources, Capabilities and Core Competencies

    Ch3-1

    External Environment
    What the Firm Might Do

    Sustainable Competitive Advantage


    Internal Environment
    What the Firm Can Do

    Ch3-2

    SWOT Analysis
    Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)

    Ch3-3

    Strengths
    A STRENGTH is something a company is good at doing or a characteristic that gives it an important capability.

    Ch3-4

    Weaknesses
    A WEAKNESS is something a company lacks or does poorly (in comparison to others) or a condition that places it at a disadvantage

    Ch3-5

    Strengths and Weakness form a basis for INTERNAL analysis


    By examining strengths, you can discover untapped potential or identify distinct competencies that helped you succeed in the past. By examining weaknesses, you can identify gaps in performance, vulnerabilities, and erroneous assumptions about existing strategies.
    Ch3-6

    Discovering Core Competencies


    Discovering Core Competencies

    Competitive Advantage
    Gained through Core Competencies

    Strategic Competitiveness
    Above-Average Returns

    Core Competencies
    Sources of Competitive Advantage

    Capabilities
    Teams of Resources

    Criteria of Sustainable Advantages * * * * Valuable Rare Costly to Imitate Nonsubstitutable

    Value Chain Analysis


    * Outsource

    Resources
    * Tangible * Intangible

    Ch3-7

    Key Question for Managers in Internal Analysis


    How do we assemble bundles of Resources, Capabilities and Core Competencies to create VALUE for customers?

    Ch3-8

    Discovering Core Competencies

    Resources
    * Tangible * Intangible
    Ch3-9

    Resources
    Tangible Resources
    * * * * Financial Physical Human Resources Organizational

    What a firm Has...


    What a firm has to work with: its assets, including its people and the value of its brand name Resources represent inputs into a firms production process... such as capital equipment, skills of employees, brand names, finances and talented managers

    Intangible Resources
    * Technological * Innovation * Reputation

    Ch3-10

    Discovering Core Competencies

    Capabilities
    Teams of Resources

    Resources
    * Tangible * Intangible
    Ch3-11

    Capabilities

    What a firm Does...

    Capabilities refer to: a companys skills at using and coordinating its resources in a most efficient way.

    Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firms tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and knowledge as carried out by the firm's employees.

    Ch3-12

    Distinction between Resources and Capabilities


    Firm-specific valuable resources Capability

    Distinctive Competences
    Firm specific capability
    Ch3-13

    Discovering Core Competencies


    Discovering Core Competencies

    Core Competencies
    Sources of Competitive Advantage

    Capabilities
    Teams of Resources

    Resources
    * Tangible * Intangible
    Ch3-14

    Core Competencies

    What a firm Does... that is Strategically Valuable

    are the essence of what makes an organization unique in its ability to provide value to customers.
    Leonard-Barton, Bowen, Clark, Holloway & Wheelwright

    ...are firm specific strenghts that allow a company to differentiate its products and/or to achieve lower costs than its rivals.
    Ch3-15

    Discovering Core Competencies


    Discovering Core Competencies

    Core Competencies
    Sources of Competitive Advantage

    Capabilities
    Teams of Resources

    Criteria of Sustainable Advantages


    * * * * Valuable Rare Costly to Imitate Nonsubstitutable

    Resources
    * Tangible * Intangible

    * Outsource

    Ch3-16

    Core Competencies
    For a strategic capability to be a Core Competency, it must be:

    What a firm Does... that is Strategically Valuable

    Valuable Rare Costly to Imitate Nonsubstitutable


    Ch3-17

    Discovering Core Competencies


    Discovering Core Competencies

    Core Competencies
    Sources of Competitive Advantage

    Capabilities
    Teams of Resources

    Criteria of Sustainable Advantages


    * * * * Valuable Rare Costly to Imitate Nonsubstitutable

    Value Chain Analysis

    Resources
    * Tangible * Intangible

    * Outsource

    Ch3-18

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Primary Activities

    Ch3-19

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Research and Development


    Primary Activities

    Ch3-20

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Research and Development

    Primary Activities

    Production

    Ch3-21

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Primary Activities

    Marketing and Sales

    Research and Development

    Production

    Ch3-22

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Marketing and Sales

    Research and Development

    Production

    Primary Activities

    Customer Service

    Ch3-23

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Company infrastructure

    Marketing and Sales

    Research and Development

    Production

    Primary Activities

    Customer Service

    Ch3-24

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Information systems Company infrastructure

    Marketing and Sales

    Research and Development

    Production

    Primary Activities

    Customer Service

    Ch3-25

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value

    Support Activities

    Logistics Information systems Company infrastructure

    Marketing and Sales

    Research and Development

    Production

    Primary Activities

    Customer Service

    Ch3-26

    Value Chain Analysis


    Identifying Resources and Capabilities That Can Add Value Human resources
    Support Activities

    Logistics Information systems Company infrastructure

    Marketing and Sales

    Research and Development

    Production

    Primary Activities

    Customer Service

    Ch3-27

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