Resources
productive input/ competitive asset owned/ controlled by company
capabilties
organizational/ managerial skills necessary to orchestrate a diverse set of resources to deploy them strategically
- intangible by nature
- expressed in company’s structure, routines + processes
core competencies
-unique strengths, embedded within a company
=> differentiate firms products/ services from rivals’
-well performed activity => central to a firm’s strategy + competitivness
activities
enable firm to add value by transforming inputs into outputs
tangible Resources
- physical
- financial
- organizational
intangible resources
- brands, company image + reputational assets
- relationships
- company culture + incentive system
- technological resources
- human asset + intellectual capital
dynamic capability
> capability to renew to achieve congruence with changing business environment
=> organization’s ability to achieve new + innovative forms of competitive advantage to sustain its strategical superiority
resource based view
resources as key to superior firm performance
resource based view assumptions
Resource heterogeneity
resource immobility
VRIO
scheme to identify core competencies
- valuable
- rare
- inimitable
- organized to capture value
competitive advantage more sustainable
costly to imitate due to following
- better expectations of future resource value
- path dependence
- casual ambiguity (tacit, complex + specific)
value chain
consists of primary + support activities
=> permits deeper look at the firm’s cost structure + ability to offer low prices
value chain primary activities
- inbound logistics/ supply chain management
- operations
- outbound logistics/ distribution
- sales + marketing
- service
value chain support activities
- product R+D, technology, purchase, systems development
- human resource management
- firm infrastructure / administration
advantages of strategic alliances
- strengthen competitive position
- enter new markets
- hedge against uncertainty
- access to complementary assets
- learn new capabilities
strategic alliances types
- equity modes
- joint venture
- non-equity modes
equity modes
- minority
- 50/50
- majority
joint venture
creation of a new entity by two/ more patent firms
non equity modes
- informal cooperative alliances
- formal cooperative alliances
strategic alliances
- voluntary arrangement between firms
- aim: sharing knowledge, resources, capabilities
Alliance management capability
partner selection + alliance formation => alliance governance + design => alliance management (post formation)
partner selection + alliance formation
challenges:
- partner compability
- partner commitment
key success factors: screening + partner selection
- common objectives
- compatible values + behaviors
alliance governance + design
challenges: - equity sharing / ownership - contractual details key success factors: negotiation + alliance designing - decentralized structure -process + interface optimization
alliance management
challenges:
- creating a common identity trough collaboration
-communication and information transfer
key success factors: commitment and trust
- relation-specific investments
- knowledge-sharing routines
- interfirm trust
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Chapter 12: Turnaround strategy + strategy implementation11
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Chapter 11 - Global Strategy60
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Chapter 10 - Digital Strategy20
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Chapter 9 - Corporate Strategy44
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Chapter 8 - A Strategy for your Life17
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Chapter 7 - The human element + microfoundations24
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Chapter 5 - Competitive strategies32
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Chapter 4 - External Analysis23
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Chapter 3 - Internal Analysis27
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Chapter 2 + 6 - Innovation37
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Chapter 1 - what is strategy?34
