Resources and Capabilities
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Transcript of Resources and Capabilities
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Resources and Capabilities
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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
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The Cola Wars – Coke vs. Pepsi
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• Inputs into a firm’s value-producing stream• What a firm has
• Capital equipment• Skills of employees• Brand names• Deep pockets• Strategic alliances
ResourcesResources
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• 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
CapabilitiesCapabilities
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Boxing Resources
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
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Boxing Capabilities
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•??•??
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SupportActivities
Primary Activities
Value Chain AnalysisTo identify which resources and capabilities can add value
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Technological DevelopmentTechnological Development
ProcurementProcurement
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Technological DevelopmentTechnological Development
Human Resource ManagementHuman Resource Management
HQ: TMT & Firm Infrastructure
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Technological Development
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Burger Joint Value Chain Strengths and Weaknesses
OBLMFGIBL MKT SVC
HRM
Purch
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