External analysis
1.External analysis allows firms to:
- discover threat and opportunities
- see if above normal profits are likely in an industry
-Better understand the nature of competition in an industry
-make more strategic informed strategic choices
5 forces model
Threat of entry
-Threat of rivalry( canh tranh)
-threat of substitutes
-threat of supplier
-threat of buyers
- Industry analysis: threats and opportunities
internal analysis
the strengths and weaknesses
resource based view
resources: tangible and intangible asset
conceive and implement strategy
4 categories
-financial
-physical
-human
organizational
capability: a subset of resources-take full advantages of resources
2 critical assumptions
resource heterogeneity: diiferent firms may have different resources
resource immobility: some resources may not spread from firm to firm easily
VRIO framework
rarity
imitability
value
organization