Analyzing a Firm’s Capabilities and Resources. Chapter 5. Organizational Analysis . Strategic management is about creating and sustaining competitive advantage. Competitive advantage can be understood in the relationship of three constructs:
This area represents the value created in each profitable sale and consists of both profit for the firm and surplus for the customer.
To the Firm
This area representsthe firm’s total costs in presenting the product or service for sale. To create new value, the firm must cover its total costs.
Sustainable competitive advantage emerges from resources that are:
CPA for textbook industry