Defining the organization's strategy direction (Stakeholder Analysis ,…
Defining the organization's strategy direction
Assessing the firm's current position
Porter's five forces
Degree of existing rivalry
Threat of potential entrants
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitutes
NEW IN: Role of complements
Who are the stakeholders?
What does each stakeholder want?
What resources do they contribute to the organization?
What claims ate they likely to make on the organization?
Identify the firm's strengths and weaknesses. Helpful to consider each element of the value chain.
Assess strengths have the potential to be sustainable competitive advantage
durable (Sustainable VA)
inimitable (Sustainable CA)
Resources are difficult (or impossible) to imitate when they are:
Identifying core competencies and Capabilities
Core competencies: A set og integrated and harmonized abilities that distinguish the firm in the marketplace
typically combine multiple kinds of abilities
several core competencies may underlie a subunit
several business units may draw from same competency
core competencies should:
be significant source of competitive differentiation
cover a range of businesses
be hard for competitors to imitate
Risk of core rigidities
firms can become over-committed to an activity and hence rigid (when excelling at it)
Incentives and culture may reward current competencies while thwarting development of new ones
Dynamic Capabilities: are competencies that enable the firm to quickly respond to change
long-term goal that is ambitious , builds upon and stretches firm's competencies , and draws from all levels of the organization
typically looks 10-20 years ahead
firm should identify resources and capabilities needed to close gap between strategic intent and current position
innovation and learning