EVALUATING COMPANY RESOURCES AND COMPETITIVE CAPABILITIES Internal Environment,CHAPTER 3,What have we learned last time?,Components of the General Environment,Threat of Substitute Products,Threat of New Entrants,Threat of New Entrants,Bargaining Power of Buyers,Bargaining Power of Suppliers,Porters Five Forces Model of Competition,Effects of Entry Barriers and Exit Barriers on Industry Profits,Entry Barriers,Exit Barriers,High,Low,High,Low,Low, Stable Returns,Entry Barriers,Exit Barriers,High,Low,High,Low,Effects of Entry Barriers and Exit Barriers on Industry Profits,High, Stable Returns,Entry Barriers,Exit Barriers,High,Low,High,Low,Low, Stable Returns,Effects of Entry Barriers and Exit Barriers on Industry Profits,Low, Risky Returns,Entry Barriers,Exit Barriers,High,Low,High,Low,Low, Stable Returns,High, Stable Returns,Effects of Entry Barriers and Exit Barriers on Industry Profits,High, Risky Returns,Entry Barriers,Exit Barriers,High,Low,High,Low,Low, Stable Returns,High, Stable Returns,Low, Risky Returns,Effects of Entry Barriers and Exit Barriers on Industry Profits,Concept to Note,Sustained Competitive Advantage,Sustained Competitive Advantage,Occurs when a firm develops a strategy that competitors are not simultaneously implementing Provides benefits which current and potential competitors are unable to duplicate,SWOT Analysis - What to Look For,Identifying Resource Strengthsand Competitive Capabilities,A strength is something a firm does well or a characteristic that enhances its competitiveness Valuable competencies or know-how Valuable physical assets Valuable human assets Valuable organizational assets Valuable intangible assets Important competitive capabilities An attribute that places a company in a position of market advantage Alliances or cooperative ventures,Identifying Resource Weaknessesand Competitive Deficiencies,A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage Resource weaknesses relate to Deficiencies in know-how or expertise or competencies Lack of important physical, organizational, or intangible assets Missing capabilities in key areas,Identifying a CompanysMarket Opportunities,The market opportunities most relevant to a company are those offering The best prospects for profitable long-term growth Competitive advantage Good match with its financial and organizational resource capabilities,Identifying External Threats,Emergence of cheaper/better technologies Introduction of better products by rivals Intensifying competitive pressures Onerous(烦琐/负法律责任的) regulations A rise in interest rates Potential of a hostile takeover Unfavorable demographic shifts Adverse shifts in foreign exchange rates Political upheaval(动荡，剧变) in a country,* Outsource,Discovering Core Competencies,How do we assemble bundles of Resources, Capabilities and Core Competencies to create VALUE for customers?,Will environmental changes make our core competencies obsolete?,And.,Are substitutes available for our core competencies?,Are our core competencies easily imitated?,Key Questions for Managers in Internal Analysis,Conditions Affecting Managerial Decisions About Resources, Capabilities and Core Competencies,Uncertainty regarding characteristics of the general and the industry environments, competitors actions, and customers preferences.,Complexity regarding the interrelated causes shaping a firms environments and perceptions of the environments,Intraorganizational Conflicts among people making managerial decisions and those affected by them,Discovering Core Competencies,What a firm has to work with:,its assets, including its people and the value of its brand name,What a firm Has.,Resources,Resources represent inputs into a firms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,What a firm Has.,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources represent inputs into a firms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,What a firm Has.,Resources,Tangible Resources,What a firm Has.,What a firm has to work with:,its assets, including its people and the value of its brand name,Resources represent inputs into a firms production process.,such as capital equipment, skills of employees, brand names, finances and talented managers,Intangible Resources,Resources,Discovering Core Competencies,What a firm Does.,Capabilities,What a firm Does.,Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firms tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and knowledge as carried out by the firms e