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Chapter 4 internal analysis
Terms in this set (26)
Unique strengths, embedded deep within a firm, that allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.
Any assets that a firm can draw on when formulating and implementing a strategy.
Organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically.
Distinct and fine- grained business processes that enable firms to add incremental value by transforming input into goods and services.
resource based view
A model that sees certain types of resources as key to superior firm performance. If a resource exhibits VRIO attributes ( see the section " The VRIO Framework" below), the resource enables the firm to gain and sustain a competitive advantage.
Resources that have physical attributes and thus are visible.
Resources that do not have physical attributes and thus are invisible.
Assumption in the resource-based view that a firm is a bundle of resources and capabilities that differ across firms.
Assumption in the resource-based view that a firm has resources that tend to be " sticky" and that do not move easily from firm to firm.
A theoretical framework that explains and predicts firm- level competitive advantage. A firm can gain a competitive advantage if it has resources that are valuable ( V), rare ( R), and costly to imitate ( I). The firm also must organize ( O) to capture the value of the resources.
One of the four key criteria in the VRIO framework. A resource is valuable if it helps a firm increase the perceived value of its product or service, either by adding attractive features or lowering costs.
rare resource One of the four key criteria in the VRIO framework. A resource is rare if the number of firms that possess it is less than the number of firms it would require to reach a state of perfect competition.
costly-to imitate resource
One of the four key criteria in the VRIO framework. A resource is costly to imitate if firms that do not possess the resource are unable to develop or buy the resource at a comparable cost.
organized to capture value
One of the four key criteria in the VRIO framework. The characteristic of having in place an effective organizational structure, processes, and systems to fully exploit the competitive potential of the firm's resources, capabilities, and competencies.
Barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.
A situation in which the options one faces in the current situation are limited by decisions made in the past.
situation in which the cause and effect of a phenomenon are not readily apparent.
situation in which different social and business systems interact with one another.
A firm's ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources in its quest for competitive advantage.
dynamic capabilities perspective
A model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment.
The firm's current level of intangible resources.Dynamic Capabilities, New Product Development, Engineering Expertise, Innovation Capability, Reputation for Quality, Supplier Relationships, Employee Loyalty, Corporate Culture, Customer Goodwill, Know- How, Patents, Trademarks .
The firm's level of investments to maintain or build a resource.
value chain analysis
The internal activities a firm engages in when transforming inputs into outputs; each activity adds incremental value. Primary activities directly add value; support activities add value indirectly.
Firm activities that add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain.
Firm activities that add value indirectly, but are necessary to sustain primary activities.
A framework that allows managers to synthesize insights obtained from an internal analysis of the company's strengths and weaknesses ( S and W) with those from an analysis of external opportunities and threats ( O and T).
THIS SET IS OFTEN IN FOLDERS WITH...
Strategic Management Chapter 1
Chapter 3 external analysis
Chapter 2 Managing the strategy process
Chapter 5 competitive advantage
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