Tangible Resources
a. Financial resources- capacity to borrow, capacity to generate funds
b. Organizational resources- formal reporting structures
c. Physical resources- sophistication of firm’s plant and equipment and attractiveness of its location
d. Technological resources
Intangible Resources
a. Human resources- knowledge, trust, skills
b. Innovation resources- ideas, scientific capabilities
c. Reputational resources- brand name, perception of product, positive relation w/ stakeholders
Capabilities- what is? Exemples.
are a result of the combination of resources of the company.
- Distribution- Effective use of logistics management techniques
- Human resources- Motivating, empowering, and retaining employees
- Management information systems- Effective and efficient control of inventories through point-of-purchase data collection methods
- Marketing- Effective promotion and customer service, innovative merchandise
- Management- Ability to envision the future of clothing
- Manufacturing
- R&D
Core competences
They result from the ability to combine resources in unique and valuable ways that distinguish the firm from competitors
VRCN Analysis
- Valuable: provides high value to stakeholders and shareholders
- Rare: few firms have access to the resource
- Costly-to-imitate: hard for competitors to mimic the resource with the same efficiency. Ambiguous cause: hard to determine what is really the basis for the competitive advantage.
- Non-substitutable: is unique in some way
Value Chain Analysis
Support activities – finance, HR and management information systems
Value chain activities – supply chain management, operations, distributions, marketing, follow-up service
Outsourcing is the purchase of a value-creating activity from an external supplier.
