Discussion Questions
October 16&18, 2012
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management Engineering
POSTECH
Discussion Questions
■ Chapter 6. Defining the Organization’s Strategic Direction
1. What is the difference between a strength, a competitive advantage, and a sustainable
competitive advantage?
– Strength:
Resources or capabilities a firm has
– Competitive advantage:
Ability to outperform a competitor
* If two competitors share the same strength,
then that strength does not afford either firm a competitive advantage
– Sustainable competitive advantage:
Competitive advantage enables a firm to outperform its competitors for an extended period of
time because the advantage is not imitable and has no ready substitutes that competitors can
adopt
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Discussion Questions
■ Chapter 6. Defining the Organization’s Strategic Direction
2. Pick a company you are familiar with. Can you identify some of its Core Competencies?
In addition, how can the company avoid falling into “Core Rigidities”?
– Microsoft
• Core competency: Operating system with high compatibility, Windows
• Core rigidity: For the high compatibility of Windows, MS makes windows too heavy to make it possible to
use old software in the new version of Windows
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Discussion Questions
■ Chapter 6. Defining the Organization’s Strategic Direction
3. How is the idea of “Strategic Intent” different from models of strategy that emphasize
achieving a fit between the firm’s strategies and its current strengths, weaknesses,
opportunities and threats (SWOT)?
– SWOT: Model to identify current situation of a company
– Strategic intent: Goal a company intends to achieve in the future (10- 20- years)
 With SWOT analysis, a company can set their strategic intent
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