sessio的n 3 internal_analysis-emba.pptVIP

Strategic Management Evening MBA INTERNAL ANALYSIS:STRENGTHS WEAKNESSES Strategic Management Konkuk University Dr. Kwangsoo Kim INTERNAL ANALYSIS: Agenda ? COMPETITIVE ADVANTAGE ? SOURCES OF COMPETITIVE ADVANTAGE ? CORE COMPETENCIES / CORE CAPABILITIES ? TASKS OF MANAGING CCs/CCs ? VALUE CHAIN ANALYSIS ? SWOT ANALYSIS ? Definition An edge over competitors in attracting customers and defending against competitive forces ? Signs of having competitive advantage Having a higher profit rate than the industry average – Temporary competitive advantage – Sustainable competitive advantage COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE ? Value creation V P C V - P P - C C V = Value to consumer P = Price C = Costs of production V – P = Consumer Surplus P – C = Profit margin SOURCES OF COMPETITIVE ADVANTAGE Resources Core Competencies/ Capabilities Competencies/ Capabilities Superior Efficiency Quality Innovation Customer responsiveness Differentiation Low Cost Value Creation Higher Profits ? Resources – Tangible resources: Land, building, equipment, plant etc – Intangible resources: Brand names, patents, reputation, marketing know-how, etc ? Competencies – Skills at integrating a set of technologies ? Capabilities – Skills at coordinating and linking a firm’s resources and business processes and putting them to productive use CORE COMPETENCIES / CORE CAPABILITIES ? Distinctive Competencies – A unique strength that allows a firm to achieve superior efficiency, quality, innovation, or customer responsiveness – A set of things/activities/processes that a firm is doing significantly better in comparison to its competitors – Core competency Core capability CORE COMPETENCIES / CORE CAPABILITIES CORE COMPETENCIES / CORE CAPABILITIES Core Competencies: Canon End Products 1 2 3 4 5 6 Business 1 Business 2 Core Product 1 Core Product 2 Core competence 2 C