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Internal Analysis

Internal Analysis. Resources and Capabilities. Critical Resources and Core Competencies. Sustainable Competitive Advantage. Resources and Capabilities. Physical Financial Organizational Human Capital Social Capital. Criteria on Which to Assess Resources and Capabilities. Value

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Internal Analysis

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  1. Internal Analysis Resources and Capabilities Critical Resources and Core Competencies Sustainable Competitive Advantage

  2. Resources and Capabilities • Physical • Financial • Organizational • Human Capital • Social Capital

  3. Criteria on Which to Assess Resources and Capabilities • Value • Exploitation of market opportunities • Buffering organizational threats • Rarity • Monopoly • Fewer firms than needed to generate perfect competition • Too few firms to meet market needs

  4. Criteria on Which to Assess Resources and Capabilities • Imitability • Causal ambiguity • Social complexity • Cospecialization of assets • Path dependence • Ex ante limits to competition • Foresight • Luck • Legal barriers • Non-substitutability

  5. Criteria on Which to Assess Resources and Capabilities • Organizationally Exploitable • Complementary assets

  6. Factors That May Influence Sustainability of Competitive Advantage

  7. Potential Problems With the Competitive Advantage Framework • Inability to respond to punctuated equilibrium shocks • Limits on managerial influence • Limited scope of managerial perceptions of advantage • Focus on “winning” • Success breeding failure

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