Resources for Planning PhD. Louise Kelly

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Resources for PlanningPhD. Louise Kelly

• Looking inside for competitive advantage
• Jay B. Barney
• Jaime Aguilar Plata

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• SWOT
• Efforts have focused on the relation between a
  firms environmental opportunities and threats on
  the other hand, and its internal strengths and
  weaknesses on the other.
• SWOT analysis, this traditional logic suggests
  that firms that use their internal strengths in
  exploiting environmental opportunities and
  neutralizing environmental threats, while
  avoiding internal weaknesses, are more likely to
  gain more competitive advantages than other kinds
  of firms.

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• SWOT
• The importance of integrating internal with
  environmental analysis can be seen when
  evaluating the sources of competitive advantage
  of many firms.
• Examples
• Wal Mart
• Southwest Airlines
• Nucor Steel
• These firms have gained competitive advantages
  despite the unatractive, high threat, low
  opoertunity environments within they operate.

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• SWOT
• Resources
• Financial Resources
• Physical Resources
• Human Resources
• Organizational Resources

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• SWOT
• 4 Important questions that managers that
  managers respond
• The question of Value
• The question of rareness
• The question of inimitability
• The question of organization

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• SWOT
• 1) The question of Value
• Do a firms resources and capabilities add value
  by enabling it to exploit opportunities and/or
  neutralize threats?
• DO resources respond to changes in the structure
  of the industry?
• Do companies invest for that purpose?
• Do the recognize new opportunities and threats?

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• SWOT
• Although a firms resources and capabilities may
  have added value in the past, changes in customer
  tastes, industry structure, or technology can
  render them less valuable in the future.
• One of the most important responsibilities of
  strategic managers is to constantly evaluate
  weather or not their firms resources and
  capabilities continue to add value, despite
  changes in the competitive environment.
• Examples of companies that have done a good job
  are
• ATT, Hunter Fan Company (Ceiling Fans)

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• SWOT
• The resources and capabilities of different firms
  can be valuable in different markets, even if
  they are competing in the same industry
• Example Rolex and Timex.
• Note
• The Quintin Watch produced by Jacob Co. costs
  around 250,000 euros.

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• SWOT
• 2) The question of Rareness
• If a particular resource and capability is
  controlled by numerous competing firms, then that
  resource is unlikely to be a source of
  competitive advantage for any one of them
• Example NEC and ATT. They develop similar
  resources.

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• SWOT
• 3) The question of inimitability
• Do firms without a resource or capability face a
  cost disadvantage in obtaining it compared to
  firms that already possess it?
• Imitation and substitution
• The importance of history
• Resources and capabilities reflect the unique
  personalities, experiences and relationships that
  exist only in a single firm.
• Example Caterpillar

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• SWOT
• In general, whenever the acquisition or
  development of valuable and rare resources
  depends upon unique historical circumstances,
  those imitating these resources will be at a cost
  disadvantage building them. Such resources can be
  sources of sustained competitive advantage.

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• SWOT
• The importance of Numerous Small Decisions.
• More and more frequently, a firms competitive
  advantage seems to depend on numerous small
  decisions through which a firms resources and
  capabilities and capabilities are developed and
  exploited

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• SWOT
• The importance of Socially Complex Resources.
• Reputation, trust, friendship, teamwork and
  culture.
• Example Hewlett Packard.

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• SWOT
• Sony is a good example of resources that can be
  imitated.
• As soon as Sony creats a new component, several
  if its competitors duplicate it.
• Sony gets the benefits of the introduction, and
  that is only a very short-lived competitive
  advantage.
• However, Sonys capability advantages do lead to
  a sustained competitive advantage.

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• SWOT
• 4) The question of Organization
• A firm must be organized to exploit its resources
  and potential, a firm must also be organized to
  exploit its resources and capabilities.
• Is a firm organized to exploit the full
  competitive potential of its resources and
  capabilities?
• Examples Caterpillar, WalMart

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• SWOT
• Coca Cola and Pepsi.
• Do they have resources that represent advantages?