Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Three
Internal Analysis:
Distinctive Competencies,
Competitive Advantage,
and Profitability
Internal Analysis
The purpose of internal analysis is to pinpoint the
strengths and weaknesses of the organization.
Strengths lead to superior performance.
Weaknesses lead to inferior performance.
Internal Analysis includes an assessment of:
Quantity and quality of a companys
resources and capabilities
Ways of building unique skills
and company-specific or
distinctive competencies
Responsiveness to customers
Copyright Houghton Mifflin Company. All rights
reserved.
1|2
Internal Analysis:
Strengths and Weaknesses
Strengths
Weaknesses
Of the enterprise
are assets that
boost
profitability
Of the enterprise
are liabilities that
lead to lower
profitability
1|3
Internal Analysis:
Three-Step Process
1.Understand the process by which companies
create value for customers and profit for
themselves.
Resources
Capabilities
Distinctive competencies
Responsiveness to Customers
1|4
Competitive Advantage
Competitive Advantage
A firms profitability is greater than the average
profitability for all firms in its industry.
is to achieve a
1|5
Strategy, Resources,
Competencies
Capabilities, and
Figure 3.1
1|6
1|7
1|8
Value Creation
Pricing Options
There is a dynamic
relationship among utility,
pricing, demand, and costs.
and
Figure 3.3
1|9
Comparing Toyota
General Motors
and
Figure 3.4
1 | 10
1 | 11
Building Blocks
Competitive Advantage
The Generic
Distinctive Competencies
of
Figure 3.6
1 | 12
Efficiency
Employee productivity
Capital productivity
1 | 13
Quality
Quality products are goods and services that are:
Reliable and
Differentiated by attributes that customers
perceive to have higher value
1 | 14
1 | 15
Innovation
Process innovation
Creates value by lowering production costs
1 | 16
Responsiveness to Customers
1 | 17
Figure 3.8
1 | 18
Analyzing Competitive
Advantage and Profitability
Competitive Advantage
Benchmarking
Comparing company performance against that of competitors and
the companys historic performance
Measures of Profitability
Return On Invested Capital (ROIC)
ROIC
Net profit
Debt to creditors
Net Profit
Net Profit = Total revenues Total costs
Copyright Houghton Mifflin Company. All rights
reserved.
1 | 19
Definitions of
Accounting Terms
Basic
Table 3.1
1 | 20
1 | 21
1 | 22
1.Barriers to Imitation
Imitating Resources
Imitating Capabilities
2.Capability of Competitors
Strategic commitment
Absorptive capacity
3.Industry Dynamism
1 | 23
1 | 24
Avoiding Failure:
Sustaining Competitive Advantage
1. Focus on the Building Blocks of Competitive
Advantage
Develop distinctive competencies and superior performance in:
Efficiency
Quality
Innovation
Responsiveness to Customers
get.
J P Morgan
1 | 25