Date post: | 02-Apr-2018 |
Category: |
Documents |
Upload: | nethra-udayakumar |
View: | 218 times |
Download: | 0 times |
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 1/20
Competitive Advantage –
Resources and Capabilities
Nethra.U
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 2/20
Overview
• What is competitive Advantage?
• A model of Competitive advantage.
• Generic Building blocks of Competitive
advantage.• Competitive advantage-
– Resources
– Capabilities
• The Hierarchy of Development of CompetitiveAdvantages
• Case study
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 3/20
What is Competitive Advantage?
• The term competitiveadvantage is the abilitygained through attributesand resources to performat a higher level thanothers in the sameindustry or market .
• When a firm sustainsprofits that exceed the
average for its industry,the firm is said to possessa competitive advantageover its rivals.
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 4/20
Marketing and Distribution
New product Innovation
Technology
software
cheaper and even
better versions of
mobile phones
Cost leadership ,
SCM
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 5/20
DISTINCTIVECOMPETENCIES COMPETITVE ADVANTAGE
VALUE
CREATION
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 6/20
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 7/20
Competitive Advantage
• Types by Michael Porter
– Cost Advantage
– Differentiation Advantage
• Resource –based View
– resources and capabilities
Positional Advantages
i.e. As leader in cost or
differentiation
competitive advantage ->
Superior value
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 8/20
Resources
• A resource is an asset, competency, process,
skill or knowledge.
• Strength –potential to do particularly well
than its rivals
• Weakness-something does corporation poorly
•
Classified as – Tangible
– Intangible
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 9/20
Resources
Tangible Resources
• Financial resources- Physical plant,raw materials and equipment.
• Human abilities, including
experience, knowledge, skill,
attitude, etc.
• Organizational abilities including
structure and processes
Intangible Resources
• Technological resources, including patents, trademarks, knowledge,
etc.
• Innovation abilities, including
facilities and employee research
skills• Reputation, including perceptions
by stakeholders and brand name
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 10/20
DEVELOPING RESOURCES INTO
COMPETITIVE ADVANTAGESValuable
• Is the resource or capability valuable in delivering the firm’s service or product to its
• customer? This is a necessary resource quality.
Durable
• Durable Is the resource or capability temporal (i.e., will disappear over a period of time) in nature
• (e.g., a limited natural resource)?
Rare • Is the resource rare, or do many other firms have this competitive capability?
Inimitable or non-substitutable
• Is the resource or capability unique to your firm relative to the competition?
• Can a resource or capability be substituted by another one in your business or industry?
Complex
• Does a resource or capability have a breadth, scope, and complexity to make it difficultfor others to both imitate and understand
• (e.g., organizational culture)?
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 11/20
Capabilities
Sets of competitive
advantages that
management integratesand coordinates to
produce a multifaceted
value-producing
advantage overcompetitors.
Examples
1.learning proficiencies.2. product development
processes.
3. fast delivery times.
4.managerial abilities.
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 12/20
Organizational Capabilities = firm’s capacity for
undertaking a particular activity. (Grant)
Distinctive Competence = things that anorganization does particularly well relative tocompetitors. (Selznick)
Core Competence = capabilities that arefundamental to a firm’s strategy andperformance. (Hamel and Prahalad)
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 13/20
The Hierarchy of Development of
Competitive Advantages
Resources
Competitive Advantages
Competitive Capabilities
Sustainable Competitive Advantages andCapabilities
Core Competencies
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 14/20
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 15/20
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 16/20
Google's Big Three Competitive
Advantages
Technology Infrastructure Innovative Services Market Share
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 17/20
Technology Infrastructure
Powerful infrastructure cannot be easily
replicated.Data Center Knowledge reported that Google
was probably using somewhere around900,000 servers.
Google’s data center’s are incredibly efficient
as they use less than 1% of the power used by
data centers worldwide
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 18/20
Innovative Services
100 s of
services –in
house and
acquisition
services at zero cost
to web users
Attractive
advertising
model
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 19/20
Market Share
• Google has held this strong majority of searchmarket share for quite some time.
7/27/2019 Competitive Advantage – Resources and Capabilities
http://slidepdf.com/reader/full/competitive-advantage-resources-and-capabilities 20/20
THANK YOU !