Strategic Management
(MGT 3830)
Last week: External Analysis
5-forces (industry analysis)
2
Chapter 4.
Internal Analysis
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Internal analysis: The Resource-Based View
Intangible
Tangible
Resources
Capabilities
Core competencies
Sustainable Competitive Advantage
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5
What makes the LSU Tigers succesful?
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Internal analysis: The Resource-Based View
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Internal analysis: The Resource-Based View
Magnitude of advantage
Duration of advantage
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Internal analysis: The Resource-Based View
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Exercise from Rothaermel F., Strategic Management, 5th ed.
Internal analysis: exercise
VR The Future (VRTF) is a firm specializing in virtual reality training simulations for high-intensity
jobs such as police, military, and other emergency personnel. VRTF’s patented system allows a
controller to quickly modify aspects of a training simulation, unlike any other VR company.
Currently, the company has 15 employees all focused on developing and marketing their
patented VR system. They are divided into two primary functions: technology development and
marketing.
The tech team has top-notch engineers working on improving and expanding their VR system.
The marketing team has built a database of the purchasing agents across their main customer
segments. However, VRTF has little brand awareness, so the marketing team also aims to
develop VRTF’s brand further. Recently, VRTF ranked 9th on the international list of Top Places
to Work due to their strong, desirable corporate culture.
Select one resource that has the potential to create a sustainable competitive advantage. Explain your choice.
What would make the competitive advantage from this resources more or less sustainable?
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Internal analysis: The Resource-Based View
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The Value Chain
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Value Chain Analysis
March 2018: McDonald’s decides to use fresh beef for it’s U.S. Quarter Pounders
=> How did this affect the different parts of their value chain?
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Implications for ‘Strategy’?
Internal Analysis
Internal Analysis
External Analysis
External Analysis
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Identifying strenghts & weaknesses
Strengths:
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•
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•
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What do your customers love about
your compary or product(s)?
What does your company do better
than other companies in your
industry?
What are your most positive brand
attributes?
What’s your unique selling
proposition?
What resources do you have at your
disposal that your competitors do
not?
Weaknesses:
•
•
•
•
•
•
•
What do your customers dislike about
your company or product(s)?
What problems or complaints are often
mentioned in your negative reviews?
Why do your customers cancel or
churn?
What could your company do better?
What are your most negative brand
attributes?
What are the biggest
obstacles/challenges in your current
sales funnel?
What resources do your competitors
have that you do not?
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“The real challenge in crafting strategy lies in detecting subtle
discontinuities that may undermine a business in the future.
And for that there is no technique, no program, just a sharp
mind in touch with the situation.” (Henry Mintzberg)
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