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The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

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Yubraj Thapa
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21 views

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Uploaded by

Yubraj Thapa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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STRATEGIC MANAGEMENT

Chapter 3:  The Internal Organization: Resources, Capabilities, Core Competencies, and


Competitive Advantages

Company achieves strategic competitiveness and earn above average returns by acquiring,
bundling and leveraging their resources for the purpose of taking advantage of opportunities in
the external environment in ways that create value for customers. (All competitive advantages
have a limited life.)
(There is no such thing as a threat, only an unrealized opportunity: Depends on the perception
on how people look at it.)

Competitive Advantage’s sustainability is a function of 3 factors:


 Rate of core competence obsolescence because of environmental changes
 Availability of substitutes for the core competence
 Imitability of core competence

Analyzing the Internal Organization: Determine what firms can do

The context of Internal Analysis: Company needs to develop their core competences from time
to time; developing global mind-set – analyzing, understanding and managing an internal
organization in such a way that firms don’t depend on the assumptions of a single country,
culture and context; understanding how to leverage the firm’s resources and their capabilities.

Creating Value: How does firms create value? By innovatively building and controlling their
resources to form capabilities and core competencies; creating value is the source of above-
average returns of firms. Every Strategies should fit in a core competency –

Challenge of analyzing the internal organization: Uncertainity(COVID), complexity (Too many


suppliers of Iphone) and Intraorganizational Conflicts;

Resources, Capabilities, Core Competencies are foundation of competitive advantange.


Resources do not create values for customers. Time is the very important resources as it is
limited. Two types of resources: Tangible and Intangible resource (human,innovation and
reputation).
Capabilities are created by combining tangible and intangible resources.

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