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[FBS-3] Analyzing Firm Capabilities (1/2) (sustainability: Imitation…
[FBS-3] Analyzing Firm Capabilities (1/2)
capabilites analysis
a resource based perspetive that considers barriers to imitation
cost advantge
lower cost structure than the marginal producor
demand advantage
same cost structure ,more customers demand
3 ways
assessing the alignment of capabilites
internal
process, people and systems are alignment
external
The "value" in a VRIN analysis
value chain
capabilities
resources
capabilities advantage sustainable degree
Sustainability:Durability
two main issues
how to maintain our capabilities
human and physical assets tend to be older and depreciate
core capabilities or rigidities?
complacency
risk aversion
myopia
prevent our capabilities from degrading and become obsolete
valuable capabilities may be obsolete tomorrow
due to the rise of technology
Value chain
All the activities and processes are necessary to create a product and service
#
resources to capabilities
tangible x people/assets
Cash, Physical Plant, Patents, Talent
intangible x people/assets
Brands, Reputation, Technical Expertise, Loyalty
tangible x systems/process
Contracts/Alliances, IT Systems
intangible x systems/process
Positive Culture, Talent Acquisition
To bring a product or service to fruition
supplier-> manufacturer-> distributor-> buyer
It's important to unpack the value chain
sustainability: Imitation
developed over unique historical path
have own learning curve
Capabilities are socially complex
service good
control scarce supply
own a valuable piece of things that others can not occupy
Legal barriers present
license
copyright
Value derives from tight combinations
the more quantity, the more value enhance
Credibly commit a firm to a course of action
specificity
scalable
Building Capability
Alternative 1
Acquired from others
Merger & Acquisition
Alliances, corporate ventures
Resources markets
Only when factors markets are imperfect
Limitations
Superior information
Pre-existing complementary capability
Luck ! ! !
Alternative 2
Developed internally
New product & internal research
Knowledge management training
Superior leadership
Hi G2, good job.
Why do you need "(1/2)" in your title?