Transcript Resources and Capabilities

Resources and Capabilities
Page 1
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
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Resources and Capabilities
Page 3
The Cola Wars – Coke vs. Pepsi
Page 4
Resources
• Inputs into a firm’s value-producing stream
• What a firm has
• Capital equipment
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Skills of employees
Brand names
Deep pockets
Strategic alliances
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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
Page 6
Boxing Resources
Boxer 1
Boxer 2
• 6’6” tall
• 5’10” tall
• 233 lbs
• 175 lbs.
• Runs 24 mi./week
• Practices yoga
• Eats 240g protein/day
• Likes to eat pasta and salad
• Has 20/20 vision
• Has 20/100 vision, must wear
contacts
• Quick reflexes
• Fought in 3 championship fights
• Coached by Cuban national
team coach
• Just learned how to box
• Prefers to coach himself
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Boxing Capabilities
Boxer 1
Boxer 2
• 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
Page 8
Value Chain Analysis
To identify which resources and capabilities can add value
Support
Activities
Primary Activities
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Inbound
Logistics
Support
Activities
Primary Activities
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Operations
Inbound
Logistics
Support
Activities
Primary Activities
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Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Primary Activities
Page 12
Primary Activities
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Page 13
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Page 14
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Procurement
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Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Page 16
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Human Resource Management
Page 17
HQ: TMT & Firm Infrastructure
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Human Resource Management
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HQ: TMT & Firm Infrastructure
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Human Resource Management
Page 19
Burger Joint Value Chain Strengths and Weaknesses
H.Q.
R&D
Purch
HRM
IBL
MFG
OBL
MKT
SVC