MARKET 1 Lecture Notes - Lecture 17: Competitive Advantage, Resource-Based View, Value Chain
Document Summary
Chapter 4: internal analysis: resources, capabilities, and core. Competencies: looking inside the firm for core competencies. Competitive advantage can be driven by core competencies. Core competencies are built through the interplay of resources and capabilities. Resources are any assets that a firm can draw on when formulating and implementing a strategy. Capabilities organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically (by nature intangible). Activities are distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services. Resources reinforce core competencies, while capabilities allow managers to orchestrate their core competencies. Core competencies that are not continuously nourished will eventually lose their ability to yield a competitive advantage because the firm"s competitors are more likely to develop equivalent or superior skills. The resource-based view resource-based view is a model that helps identify core competencies and that sees certain types of resources as key superior firm performance.
