Resources, Capabilities & Core Competencies

Sumber: Gary Hamel & C.K. Prahalad. Competing for the future. Harvard Business Review.

Components of Internal Analysis Leading to Competitive Advantage & Strategic Competitiveness

Components of Internal Analysis Leading to Competitive Advantage & Strategic CompetitivenessResources, Capabilities & Core Competencies

Sony that benefit is "pocketability," and the core competence is miniaturization

Federal Express the benefit is on-time delivery, and the core competence, at a very high level, is logistics management

DELL core competencies

Global production……strength in Supply chain Direct selling with interactive online shopping to cut of cost Value creation: low cost than competitor

Management guru Michael Porter argues that business strategy is not about operational effectiveness (doing things better), but about doing things differently.

For Porter, 'Competitive Strategy' means deliberately choosing a different set of activities to deliver a unique mix of value.

Core competencies of a company can be defined as a set of skills and expertise that enable a company to deliver exceptional value to customers.

Components of Internal Analysis Leading to Competitive Advantage & Strategic Competitiveness

Resources, Capabilities & Core Competencies

Resources, Capabilities, and Core Competencies

Resources are the source of a firm’s capabilities. Resources are bundled to create organizational capabilities. Capabilities in turn are the source of a firm’s core competencies, which are the basis of competitive advantages

Competitive

Advantage

ResourcesCapabilit

iesCore

Competencies

Resources

Tangible resources areassets that can be seen andquantified.

Resources are inputs into a firm’s production process, such as capital equipment, the skillsof individual employees, patents, finances, and talented managers.

Resources, Capabilities, and Core Competencies

Resources

Intangible resources includeassets that typically are rooted deeply in the firm’s history and have accumulated over time.

Resources, Capabilities, and Core Competencies

Capabilities

Unilever

Garuda Indonesia

Apple

Samsung electronic

Herbal product PT. sidomuncul

UnileverMarta tilar

Apple - Sony

Resources, Capabilities, and Core Competencies

Capabilities exist when resources have been purposely integrated to achieve a specific task or set of tasks.Capabilities

Critical to the building of competitive advantages, capabilities are often based on developing, carrying, and exchanging information and knowledge through the firm’s human capital

Exp: Client-specific capabilities often develop from repeated interactions with clients and the learning about their needs that occurs

Capabilities often evolve and develop over time

Dynamic CapabilityCapacity (1) to sense and shape opportunities and threats, (2) to seize opportunities, and (3) to maintain competitiveness through enhancing, combining, protecting, and when necessary, reconfiguring the business enterprise’s intangible and tangible assets.

Resources, Capabilities, and Core Competencies

Firms must also be able to utilize the knowledge that they have and transfer it among their business units

The firm’s challenge is to create an environment that allows people to integrate their individual knowledge with that held by others in the firm so that, collectively, the firm has significant organizational knowledge

Capabilities

Resources, Capabilities, and Core Competencies

Capabilities

Knowledge (information, intelligence, and expertise) Transfer

Knowledge is gained through experience, observation, and inference and is anintangible resource

Learning Organization

Resources, Capabilities, and Core Competencies

Core Competenci

es

core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals.

Capacity of an integrated set of resources to integratively perform a task or activity

Core competencies emerge over time through an organizational process of accumulating and learning how to deploy different resources and capabilitiesNot all of a firm’s resources and capabilities are strategic assets—that is, assets that have competitive value and the potential to serve as a source of competitive advantage

Resources, Capabilities, and Core Competencies

Building Core Competencies

Building Core Competencies

Building Core Competencies

Four Criteria of Sustainable Competitive Advantage

Capabilities that are valuable, rare, costly to imitate, and non substitutable are Core Competencies

Core competencies are sources of competitive advantage for the firm over its rivals.

Valuable capabilities

Rare capabilities

Costly-to-imitate capabilities

Non substitutable capabilities

SCA

Building Core Competencies

Building Core Competencies

Building Core Competencies

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Conditions Affecting ManagerialDecisions about Resources,Capabilities, and

Core Competencies

Building Core Competencies

Competitive Advantage

Next Week…….#6

Market Base Strategy Vs Resources Base Strategy

To be continued…next slide"Strategic management is trying to understand where you will sit in tomorrow's world, not where you hope to sit; assessing where you can be and deciding where you want to be." - John F Welch. General Electric Co