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Internal Analysis - Coggle Diagram

- - - - R&C help firm exploit opportunities/neutralize threats
    - - Only a few companies can acquire → Rare
      - Many players have same certain resource → Competitive parity → Less rare
    - - Intangible resources → Harder + more costly to imitate than physical assets
      - Costly imitation→ Sustained competitive advantage until a substitute emerges
      - Reason
        
        (1) Unique Historical Conditions: Special opportunities from a firm’s past
        
        (2) Causal Ambiguity: Competitors struggle to understand key factors
        
        (3) Social Complexity: Relationships, culture, reputation → Hard to replicate
        
        Patents: Two-edged sword
        
        Raise the cost of imitation in some certain industries
        
        Required disclosure → Decrease imitation cost + take time
- - - - Tangible & intangible assets
      - Used to conceive of and implement strategies
    - - Tangible & intangible assets → Help firm maximize the use of its other resources
      - A subset of a firm’s resources
    - - Financial
        
        All money from all source used to create & implement strategies (cash, retained earnings)
      - Physical
        
        All physical technology (plant & equipment, geographic location)
      - Human
        
        Training, experience, judgment, intelligence, relationships (skills & abilities of individuals)
      - Organizational
        
        Attribute of groups of individuals (reporting structures, relationships)
  - - - Firms within the same industry have different resources & capabilities
      - Several resources & capabilities ‘bundled’→ Competitive advantage
    - - Firms without resources → Costly to acquire/develop
      - Valuable resources: hard to replicate
      - Costs of imitation
        
        Imperfect imitability: High cost
        
        Inimitability: Can not imitate at any cost
      - Resources cannot easily move between firms