Please enable JavaScript.
Coggle requires JavaScript to display documents.
[G5] Analyzing Firm Capabilities (alignment (external (The value…
[G5] Analyzing Firm Capabilities
Analyzing Capabilities
Assessing the alignment of capabilities both internally and externally
Determining the degree to which any capability advantage is sustainable over time
Identifying the value chain and specific resources and capabilities
Module Lessons
Capabilities arise through the interaction of
People
Processes
Systems
Capabilities must by well aligned
Internally
Externally
Durable
Hard to imitate
Superior capabilities are either acquired or built and required superior know-why or know-how
Sustainability
imitablity
legal barriers
license,patent
control scarce supply
real estate
unique historical path
semi conducter,airlines
socially complex
superior service
tight combination
telephone,internet
certain course of action
Scalable
Airbus&Boeing
specificity
Durability
human capital
Micheal jordon
core capabilities become rigid
Toyota,Honda
valuable capabilities get obsolete
watch
May be more valuable to others
Value chain, describes all the steps necessary to bring a product to market
Tangible Asset
People
Talent
Physical plant
Intellectual Property
Cash
Intangible Asset
Reputation
Technical expertise
Brands
Culture
The Strategist's Toolkits:Capability Analysis
Helps us understand the internal environment of the organization
Helps us identify the capabilities the firm has
Assess whether these capabilities provide competitive advantage or not
alignment
internal
external
The value proposition we are trying to create.
VRIN (
V
aluable,
R
are,
I
nimitable,
N
on-substitutable)
a company charts sound tactics to
match its commercial ambitions to resources it has
or can acquire.
Example , Nucor Steel
Value position : low cost per ton
Operating efficiency
High utilization
Capital efficiency
Building Capabilities
alternative two
develop these internally over time
first alternative
acquire them from others
limitations
factor markets to be imperfect
superior information
pre-existing complementary capability