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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