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Chapter 4

Analyzing a
Companys
Resources and
Competitive
Position

Kelompok 3 :

Before executives can chart


a new strategy, they must
reach common
understanding of the
companys current position.
W. Chan Kim and
Renee
Mauborgne

Chapter Outline
Evaluating How Well a Companys Present
Strategy is Working
Sizing Up a Companys Resource Strengths
and Weaknesses and Its External
Opportunities and Threats
Analyzing Whether a Companys Prices and
Costs are Competitive
Assessing a Companys Competitive
Strength
Identifying the Strategic Issues that Merit
Managerial Attention

Key Questions in Situation Analysis


Question 1: How well is the companys
strategy working?
Question 2: What are the companys
competitively important resources and
capabilities?
Question 3: Are the companys prices
and costs competitive?
Question 4: Is the company
competitively stronger or weaker than key
rivals?
Question 5: What strategic issues and
problems merit front-burner managerial
attention?

Fig. 4.1: Identifying the Components of a Single-Business


Strategy

How Well Is the


Present Strategy Working?

Two Key Steps


Quantitative
Qualitative
assessment -- What
is the strategy?
Competitive
strategy
Competitive scope
Recent
competitive
moves
Functional
strategies

assessment -- What
are the results?
Is company
achieving its
financial and
strategic
objectives?
Is company an
above-average
industry
performer?

Performance Indicators

Trends in sales and earnings growth


Trends in the companys stock price
The companys overall financial strength
The rate at which new customers are acquired
Image and reputation with customers
Evidence of improvement in internal processes
such as defect rate, order fulfillment, and days of
inventory

Situation Analysis Question 2: The Companys


Competitively Important Resources and Capabilities

A companys strategy and business


model
Must be well-matched to its collection of
resources and capabilities
Is strengthened when exploiting resources
that are competitively valuable, rare,
hard to copy, and not easily trumped
to rivals equivalent substitute
resources

Resource-Based Strategies
Resource-based
strategies attempt
to exploit a
companys valuable
and rare resources
and competitive
capabilities to
deliver value to
customers in ways
rivals find it
difficult to match

Identifying Competitively Important


Resources and Capabilities
Common types of valuable resources
and competitive capabilities include
Skills or specialized expertise in a
competitively important capability
Valuable physical assets
Valuable human assets or intellectual capital
Valuable organizational assets
Valuable intangible assets
Competitively valuable alliances or cooperative
ventures

Strategies for Addressing Resource


Deficiencies
Companies lacking a competitively
powerful stand-alone resource may
be able to support its strategy with a
bundle of resources.
Companies may be able to neutralize
the power of rivals resources and
capabilities by developing
substitute resources to
accomplish the same purpose.

Resources and Capabilities as the


Foundation of Competitive Advantage

A competence represents real


proficiency in performing an internal
activity
A core competence is a well-performed
internal activity central to a companys
competitiveness and profitability
A distinctive competence is a
competitively valuable activity a
company performs better than its
rivals

Identifying Resource Weaknesses


and Competitive Deficiencies
A weakness is something a firm lacks,
does poorly, or a condition placing it at a
disadvantage in the marketplace
Resource weaknesses relate to
Inferior or unproven skills,
expertise, or intellectual capital
Deficiencies in competitively important
physical, organizational, or intangible assets
Missing or competitive inferior capabilities in
key areas

Identifying a Companys
Market Opportunities
Opportunities most
relevant to a company are
those offering
Good match with its
financial and
organizational resource
capabilities
Best prospects for
growth and
profitability
Most potential for
competitive
advantage

Identifying External Threats to


Profitability and Competitiveness

Entry of lower-cost foreign competitors


Burdensome regulations
Rise in interest rates
Potential of a hostile takeover
Unfavorable demographic shifts
Adverse shifts in foreign exchange rates

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