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Internal Analysis and Competitive Advantage (3-1.1 Competitive Advantage…

- - - - industry effects
        
        there are durable features of this industry
      - company effects (major factor)
        
        particular attributes make differences between firms in the same industry
    - - the company performs better than same industry average competitors
    - - EVA:Economic Value Added
        
        EVA=Value - Cost
        
        it's difficult to measure exactly how much value is being created
      - accounting profits
        
        return on assets, or return on equity, or return on capital employed
        
        backward-looking data
      - company's stock market value
        
        NPV:Net Present Value
        
        focus on future cash flows or cash profits
        
        unable to reflect internal assets
        
        ex:human capital, process, knowledge
      - these approaches to measuring performance have advantages and drawbacks
  - - - what are the attributes that make firms different in their performance
      - how can a company acquire or develop these attributes?
    - - how can these performance advantages be made durable