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

  1. 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