Components of Internal Analysis Leading to
Competitive Advantage & Strategic Competitiveness
Resources, Capabilities & Core Competencies
Sumber: Gary Hamel & C.K. Prahalad. Competing for the future. Harvard Business Review.
Components of Internal Analysis Leading to
Competitive Advantage & Strategic Competitiveness
Resources, Capabilities & Core Competencies
Sony that benefit
Federal Express the
is "pocketability,"
benefit is on-time
and the core
delivery, and the core
competence is
Management guru Michael Porter argues
that business
strategy is not about
competence,
at a very
miniaturization
operational effectiveness (doing things better),
butisabout
doing things differently.
high level,
logistics
management
For Porter, 'Competitive Strategy' means deliberately choosing a different set of
activities to deliver a unique mix of value.
Core competencies of a company can be defined as a set of skills and expertise
thatcore
enable
a company to deliver exceptional value to customers.
DELL
competencies
Global production……strength in Supply chain
Direct selling with interactive online shopping to cut of cost
Value creation: low cost than competitor
Components of Internal Analysis Leading to
Competitive Advantage & Strategic Competitiveness
Resources, Capabilities & Core Competencies
Resources, Capabilities, and Core Competencies
Capabilities
Core
Competencies
Resources
Competitive
Advantage
Resources are the source of a firm’s capabilities. Resources are bundled to create
organizational capabilities. Capabilities in turn are the source of a firm’s core
competencies, which are the basis of competitive advantages
Resources, Capabilities, and Core Competencies
Resources
Resources are inputs
into a firm’s production
process, such as capital
equipment, the skills
of individual
employees, patents,
finances, and talented
managers.
Tangible
resources are
assets that can
be seen and
quantified.
Resources, Capabilities, and Core Competencies
Resources
Intangible
resources include
assets that typically
are rooted deeply in
the firm’s history
and have
accumulated over
time.
Resources, Capabilities, and Core Competencies
Capabilities
Unilever
Marta tilar
Unilever
Garuda Indonesia
Herbal product
PT. sidomuncul
Apple - Sony
Apple
Samsung electronic
Resources, Capabilities, and Core Competencies
Capabilities exist when resources have been purposely
Capabilities
Capabilities often
evolve and develop
over time
integrated to achieve a specific task or set of tasks.
Critical to the building of competitive advantages, capabilities are
often based on developing, carrying, and exchanging information
and knowledge through the firm’s human capital
Exp: Client-specific capabilities often develop from repeated
interactions with clients and the learning about their needs that
occurs
Dynamic Capability
Capacity (1) to sense and shape opportunities and threats, (2) to seize opportunities, and
(3) to maintain competitiveness through enhancing, combining, protecting, and when
necessary, reconfiguring the business enterprise’s intangible and tangible assets.
Resources, Capabilities, and Core Competencies
Capabilities
Firms must also be able to utilize the
knowledge that they have and transfer
it among their business units
The firm’s challenge is to create
an environment that allows people to integrate their individual
knowledge with that held by others in the firm so that, collectively,
the firm has significant organizational knowledge
Resources, Capabilities, and Core Competencies
Capabilities
Knowledge is gained
through experience,
observation, and
inference and is an
intangible resource
Knowledge
(information,
intelligence, and
expertise) Transfer
Learning Organization
Resources, Capabilities, and Core Competencies
Core
Competencies
Capacity of an
integrated set
of resources to
integratively
perform a task
or activity
core competencies are capabilities that serve as a source of
competitive advantage for a firm over its rivals.
Core competencies emerge over time through an
organizational process of accumulating and learning how to
deploy different resources and capabilities
Not all of a firm’s resources and capabilities are strategic
assets—that is, assets that have competitive value and the
potential to serve as a source of competitive advantage
Building Core Competencies
Building Core Competencies
Building Core Competencies
Capabilities
that are valuable, rare, costly to imitate, and non
substitutable are Core Competencies
Core competencies
are sources of competitive advantage for the
firm over its rivals.
Four Criteria of Sustainable Competitive Advantage
Valuable capabilities
Rare capabilities
Costly-to-imitate capabilities
Non substitutable capabilities
SCA
Building Core Competencies
Building Core Competencies
Building Core Competencies
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Conditions Affecting Managerial
Decisions about Resources,Capabilities, and
Core Competencies
Building Core Competencies
Next Week…….#6
Competitive Advantage
Market Base Strategy
Vs
Resources Base Strategy
To be continued…next slide
"Strategic management is trying to understand where you will sit in tomorrow's
world, not where you hope to sit; assessing where you can be and deciding
where you want to be."
- John F Welch. General Electric Co