CAOT 31 Lecture Notes - Lecture 6: Dynamic Capabilities, Competitive Advantage, Reproductive Isolation
30 Oct 2020
School
Department
Course
Professor
Document Summary
A firm"s ability to gain and sustain cometitive advantage is party driven by core competencies. Analytical tools to explain why differences in firm performance exist even within the same industry. Up to 55% of overall performance differences explained by firm-specific events. Look inside firm for strengths and weaknesses + link them to external analysis. Goal: develop resources, capabilities, competencies that create strategic fit with the firm"s environment (internal strengths should change with external environment dynamicly) 4. 1 looking inside the firm for core competencies. Competitive advantage can be driven by core competencies. Underneath products/services that make up the visible side of competition lies a diverse set of invisible competencies. Companies compete as much in product markets as in deveoping and leveraging core competencies. Core competencies are built through interplay of resources and capabilities. Resources: any assets a firm can draw on when formulating/implementing a strategy (cash, buildings, machines; tangible or intangible)
