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(ASM)G3-Analyzing firm capability (Introduce (Action (Definition Alignment…
(ASM)G3-Analyzing firm capability
Introduce
Mission
Distinctive capabilities that might provide a competitive advantage for your organization
Action
Definition Alignment internal & external
Sustainability capability advantage
Map the Value Chain
Building capabilities
Goal
Maintain organizational competitive advantage
Examples
South West Airline
Cost advantage
Demand advantage
alignment internal & external
Example -
Nucor Steel
Able to be a successful low-cost player
Building capabilities
Alternative 1
Limitations
Only viable (factor markets are imperfect)
Superior information or pre-existing complementary capabilities
Acquired from others
Alliances, Associations, Corporate Venture Captial
Resource market (labour, technology, patents)
Mergers and acquisitions
Goal
-To have better information or a better set of pre-existing complimentary capabilities.
-To develop them internally over time
Acquire for less than the value it creates
Alternative 2
Developed internally over time
New product development and internal R & D
Knowledge Management, training
Superior leadership
Limitations
Superior information (Know-Why)
Pre-existing complementary capabilities (Know-How)
Value chain
Support Activities
Procurement
Human Resource management
Technological Development
Infrastructure
Margin
Margin = value (total revenue) - total costs
Primary Activities
inbound logistics
operations
outbound logistics
marketing and sales
service
Capabilities
Resources
Tangible assets
People / Assets
Cash, Physical plant, Intellectual property...
Systems / Processes
Contracts, Alliances...
Intangible assets
Systems / Processes
Positive Culture, Talent acquisition
People / Assets
Brands, Reputation, Technical Expertise, Loyalty...
Sustainability capability advantage
Imitaton
(can others do what we do?)
Goal:create a barrier of imitation
Ways
Legal barrier
license required to be able to operate an industry
patent
intellectual property
Ex:Disney
scarce supply
EX:location of your restaurant
unique historical path
learning curve
EX:Southwest Airlines
socially complex
susass with a number of different factors
EX:Disney
tight combinations
network externalities
(he value of a good or service increases as others consume that good or service)
Ex:facebook
credible commitment
(do something nomatter what)
EX:Airbus& jumbo airline
Durability
Goal:maintain or upgrade the capabilities over time
Ways
human capital
Physical asset
core capabilities may become core rigidity over time