SM Project Report_Final

download SM Project Report_Final

of 31

Transcript of SM Project Report_Final

  • 8/8/2019 SM Project Report_Final

    1/31

    Core Competencies andSustainable Competitive

    Advantage

    Group 5

    Hitesh Chopra PGP/13/275Manish Nahar PGP/13/280

    Prashant KhuranaPGP/13/290

    Swati Bhatia PGP/13/304

  • 8/8/2019 SM Project Report_Final

    2/31

    Agenda

    Core Competence andSustainable CompetitiveAdvantage

    Resource Based View

    Empirical Analysis

    Strategic Architecture

    Apple Computers, Inc. Sustainable Competitive Advantage

    of Apple: Results

  • 8/8/2019 SM Project Report_Final

    3/31

    ResourcesTangibleIntangible

    Capabilities

    ore Competencies

    iscovering Core Competencies

    riteria for Sustainable Competitive Advantagealue chain analysis

    ustainableompetitiveAdvantage

    ValueRarityInimitableOrganisationSubstitutionDynamic

    Outsourcing

  • 8/8/2019 SM Project Report_Final

    4/31

    Ca

    pa

    bili

    ty

    Rare

    -Valua ble

    Co

    re

    Co

    mp

    et

    en

    cy

    Costly to Imitate

    -Non Substitutable

    Sustainable Competitive A

    Exploitability

    ilities

    lead to Sustainable Competitive

  • 8/8/2019 SM Project Report_Final

    5/31

    Hypothesis: Dimensions of core competencieshave a significant positive relationship withcompetitive advantage

    Methodology : Core Competencies & Competitive

    Advantage factors were rated and then aRegression Analysis was carried out

    mpact of Core Competencies on:ompetitive Advantage Empirical Analysis

  • 8/8/2019 SM Project Report_Final

    6/31

    Analysis

  • 8/8/2019 SM Project Report_Final

    7/31

    Developing Strategic Architecture

  • 8/8/2019 SM Project Report_Final

    8/31

    C.K. Prahlad and Gary Hamel in the Harvard Business Review, Corecompetencies form the roots of the organization tree,

    providing nourishment and stabilization.

    , , .he corporation like a tree grows from its roots Coreroducts are nourished by competencies and engender business.nits whose fruits are end products

  • 8/8/2019 SM Project Report_Final

    9/31

    Agenda

    Core Competence and Sustainable CompetitiveAdvantage

    Apple Computers, Inc.

    Why Apple?

    SWOT Analysis

    VRINE Analysis

    Applicability of Core Competencies

    Innovation in Large Enterprises Causal Ambiguity Paradox

    Competency based model of Sustainablecompetitive advantage

    Firm Resources and Sustainable

  • 8/8/2019 SM Project Report_Final

    10/31

  • 8/8/2019 SM Project Report_Final

    11/31

    ddressatentneeds

    AttractieDesigns

    ut ofhe boxthinking

    elatedndUnrelate

    Diversification

    INNOVATION

    oreompetency

    ndustainableompetitiveAdvantage

    Why Apple?

  • 8/8/2019 SM Project Report_Final

    12/31

    SWOT

  • 8/8/2019 SM Project Report_Final

    13/31

    Valuable

    Rare

    Inimitable

    -Non Substitutable

    Exploitable

    Competence in innovation in technology and design Good sales channels Human Capital

    Steve Jobs and Jonathan Paul Ive They drive the innovation in technology and designs

    Resources are inimitable Comes from the Freedom to exploit the creative skills Very hard and costly to imitate

    Firm specific knowledge as well as the culture within the company are difficul Culture drives the zeal within the company to excel and innovate

    bove 4 steps show that the company has got the capabilities to exploit the reso.pple is synonymous with Innovation Hence they are able to command a premium fo

    igher product Aspiration and Realization

  • 8/8/2019 SM Project Report_Final

    14/31

  • 8/8/2019 SM Project Report_Final

    15/31

    Apple: The Innovation Machine

  • 8/8/2019 SM Project Report_Final

    16/31

    bly favour retention of routines that lead to distinctive competence and speci

    experimentation

    CompetencyTraps

    Innovation in Large Enterprises

  • 8/8/2019 SM Project Report_Final

    17/31

    -The capacity to innovate is in itself a core competence

    Experimentation with these three is necessar

    Innovation in Large Enterprises

  • 8/8/2019 SM Project Report_Final

    18/31

    Bringing the best personal computing experience through its innovative

    products

    Innovation at Apple

  • 8/8/2019 SM Project Report_Final

    19/31

    lly Ambiguous Competencies

    Software

    Superiority

    Address Latent Needs

    Are Steve Jobs and Jonathan Ive the only reasons for Apple s success??

    Internally Developed

    Strategic Acquisitions

    Encouragement of tacit competenci

    The Causal Ambiguity Paradox

  • 8/8/2019 SM Project Report_Final

    20/31

    M a n a g e ria lC o m p e te n cie s a n d S tra te g ic fo cu s

    -O u tp u t b ased com p eten cies-In p u t b ased com p eten cies

    -Tra n sfo rm a tio n b a sed co m p e te n cie s

    It is a n in te g ra te d m o d e l th a t co m b in e d,a llsou rces of com p e te n cie s n a m e ly

    ased model of Sustainable competit

  • 8/8/2019 SM Project Report_Final

    21/31

  • 8/8/2019 SM Project Report_Final

    22/31

    urces and Sustainable Competitive

  • 8/8/2019 SM Project Report_Final

    23/31

  • 8/8/2019 SM Project Report_Final

    24/31

    Agenda

    Core Competence and SustainableCompetitive Advantage

    Apple Computers, Inc.

    Sustainable CompetitiveAdvantage of Apple: Results

    %

  • 8/8/2019 SM Project Report_Final

    25/31

    Financials

    43

    32

    24

    19

    14

    8

    665

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21

    /2010

    11/21/2010

    %

  • 8/8/2019 SM Project Report_Final

    26/31

    Financials

    8

    5

    3

    2

    1

    000

    0

    -

    1

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/

    2010

    11/21/2010

    11/21/2010

    -

  • 8/8/2019 SM Project Report_Final

    27/31

    Financials

    71

    103

    121

    159

    263

    301300

    325

    0

    50

    100

    150

    200

    250

    300

    350

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

    11/21/2010

  • 8/8/2019 SM Project Report_Final

    28/31

    Bibliography

  • 8/8/2019 SM Project Report_Final

    29/31

    Bibliography

  • 8/8/2019 SM Project Report_Final

    30/31

    Bibliography

  • 8/8/2019 SM Project Report_Final

    31/31

    Thank You