Look inside for competitive advantage
Barney (1995)
SWOT
Only half the story
Need also to consider internal attributes
Analysis of some firms who have competitive advantage using this method do not explain success
VRIO
Value
Rareness
Imitabiltiy
Organisation
Do a firms resources and capabilities add value by enabling to exploit opportunities and neutralise threats
How does a changing competitive environment affect these? How have things changed over time
Environmental shifts - How can traditional strengths be used to neutralise new threats or exploit new opportunities opportunities
Managers should link analysis of internal resources and capabilities with environmental opportunities and threats
How many competing firms have the same/similar resources or capabilities
If not rare then they can not be a competitive advantage
Need to exploit resources that are different from competitors
Just because they are not rare doesn't mean they are not valuable!
Can occur through duplication or substitution
How easy is it to copy what is being done
Companies history can make it difficult to imitate
Considers how to sustain a competitive advantage
Small decisions made every day can lead to a position of sustained competitive advantage - do everything right!
Socially complex resources are difficult to imitate; culture, trust. enabling, reputation
Mindset of the organisation
Infrastructure to support itself
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