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SMMCG9[BS-3]LN5&LN6, G9 (IBS3 Jenny, IBS3 Cathy, IBS3 Apphia, IBS3…
SMMC
G9
[BS-3]LN5&LN6
ARC structure
Activities
Solution
value network
service industry
value chain
manufacturing firms
classification
Find correlation
Synergies
concentrate
Resources
tangible
financial
borrowing cpacity
cash
physical
building
machinery
intangible
technology
relationship
human capital
⭐️good resource
Scarce
greatest potential to create EV
intangible become more and more important
create economic value.
greater financial and physical resources owned
❗️importance of intangibles form industry to industry
concentrate
Capabilities
aspects
Reliable
repeatedly
Consistent
minimum expectation
satisfactory level of execution
the firm to actually
DO
something
R&D
specific but cross-functional
internal attribute
competitive advantage
e.g. Apple
Activities
linked up and exploit the synergies
Resources
well known brand
excellent leadership
many technological patents
:!:
isolating mechanism :lock:
sustains its competitive advantages :smiley:
Capabilities
great customers service
design easy-to-use product
innovative product design
deploy and combine resource
web developers coperate with viral marketers.
learning in organizational process
built APPLE's DNA
great marketing
great off/online retail
competitive advantage
sustain
Potential challenges
threat to rarity
Replication
Imitation
isolating mechanisms
barriers
resource mobility barriers
complexity
property rights
casual ambiguity
Inperfect but increase difficulty to copy
tacit knowledge
time compression diseconomies
threat to creation
Relevance
dynamic capabilities to change
core competences :check:
core rigidities :red_cross:
Durability
Leaky bucket
Continuously top up and add to the bucket to replace what is being lost
.e.g.new hires
plug the leaks
e.g. retain the resources&activities
key concept
industry effects
to predict 50% of profit performance
company effects
to predict 80% of company performance
Perform better than competitors
better performance
A/C data
Market value
Triangulate&holistic
NPV
EVA
Better than competitors
Performance
Summary
create economic value
Capabilities
What makes company done a great job
Resourses
Others don't have
Activities
make more value-added
the firm can achieve good performance in an unprofitable industry
e.g.Southwest Airlines
has a competitive advantage
Find company effect in industry
Choose a good market
competitive advantage
Dynamic thinking
must be
valuable
rare
External analysis
G9
IBS3 Jenny
IBS3 Cathy
IBS3 Apphia
IBS3 Rita
IBS3 Kevin
IBS3 Tina
Internal analysis
Company strategic management
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