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Resources and Capabilities

Resources and Capabilities. Competitive Advantage: An Internal View. What is a resource? What is a capability? What’s the difference: Potential vs. Kinetic energy? How do resources and/or capabilities contribute to competitive advantage? Decisions Actions and maneuvers

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Resources and Capabilities

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  1. Resources and Capabilities

  2. Competitive Advantage: An Internal View • What is a resource? • What is a capability? • What’s the difference: • Potential vs. Kinetic energy? • How do resources and/or capabilities contribute to competitive advantage? • Decisions • Actions and maneuvers • Force, endurance

  3. Resources and Capabilities

  4. The Cola Wars – Coke vs. Pepsi

  5. Resources • Inputs into a firm’s value-producing stream • What a firm has • Capital equipment • Skills of employees • Brand names • Deep pockets • Strategic alliances

  6. Capabilities • The ability to integrate resources to achieve a desired objective • What a firm can do • Quick introduction of new products • Preemptive price-cutting • Attention-grabbing advertising

  7. Boxer 1 6’6” tall 233 lbs Runs 24 mi./week Eats 240g protein/day Has 20/20 vision Quick reflexes Fought in 3 championship fights Coached by Cuban national team coach Boxer 2 5’10” tall 175 lbs. Practices yoga Likes to eat pasta and salad Has 20/100 vision, must wear contacts Just learned how to box Prefers to coach himself Boxing Resources

  8. Boxer 1 Longer punching reach Punches with great force, speed and power Endurance to compete aggressively for 10-round match Able to quickly move away from fierce attacks Able to quickly see and interpret rival’s hand, feet, and eye movements Able to blend own and coach’s experience for superior strategy and tactics Boxer 2 ?? ?? Boxing Capabilities

  9. Value Chain Analysis To identify which resources and capabilities can add value Support Activities Primary Activities

  10. Support Activities Inbound Logistics Primary Activities

  11. Support Activities Inbound Logistics Operations Primary Activities

  12. Support Activities Inbound Logistics Outbound Logistics Operations Primary Activities

  13. Support Activities Marketing & Sales Outbound Logistics Inbound Logistics Operations Primary Activities

  14. Support Activities Service Inbound Logistics Outbound Logistics Marketing & Sales Operations Primary Activities

  15. Support Activities Procurement Service Inbound Logistics Outbound Logistics Marketing & Sales Operations Primary Activities

  16. Support Activities Technological Development Procurement Service Inbound Logistics Outbound Logistics Marketing & Sales Operations Primary Activities

  17. Human Resource Management Support Activities Technological Development Procurement Service Inbound Logistics Marketing & Sales Outbound Logistics Operations Primary Activities

  18. HQ: TMT & Firm Infrastructure Human Resource Management Support Activities Technological Development Procurement Service Inbound Logistics Marketing & Sales Outbound Logistics Operations Primary Activities

  19. HQ: TMT & Firm Infrastructure Human Resource Management Support Activities MARGIN Technological Development Procurement Service Inbound Logistics Marketing & Sales Outbound Logistics MARGIN Operations Primary Activities

  20. Burger Joint Value Chain Strengths and Weaknesses H.Q. R&D Purch HRM IBL MFG OBL MKT SVC

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