Strategic Analysis: Internal Environment

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Questions and Answers

What are non-substitutable capabilities?

Capabilities that have strategic equivalents

Capabilities without strategic equivalents (correct)

Capabilities that are universally applicable across industries

Capabilities that can be easily imitated by competitors

Which company is mentioned as having a low-cost strategy that competitors have struggled to imitate?

Airtel

Apple

Tata (correct)

Samsung

What criteria must be met for a capability to be considered a core competence?

It must be valuable, rare, costly to imitate, and non-substitutable (correct)

It must be inherently easy to replicate

It must be common among competitors

It must focus solely on external opportunities

What is the primary objective of a SWOT analysis?

To develop awareness of factors for business decision-making Signup and view all the answers

Airtel’s marketing campaign emphasizes which core competency?

Zero Customer Complaints Signup and view all the answers

How can organizations utilize SWOT analysis effectively?

To develop strategies that leverage strengths and opportunities Signup and view all the answers

What must be true for core competencies to create value?

They should allow the firm to exploit external environment opportunities. Signup and view all the answers

Which of the following best describes the concept of competitive advantage?

The unique advantages that allow a firm to outperform its rivals Signup and view all the answers

What is the primary purpose of the service channel in a sales strategy?

To provide necessary services that support the product during and after the sales process Signup and view all the answers

Why is channel analysis crucial for businesses planning to expand their markets?

It identifies suitable channels to reach potential customers effectively Signup and view all the answers

When targeting elderly customers, what is an important consideration for a healthcare brand?

Focusing on offline modes of business for personal outreach Signup and view all the answers

What role do strong distribution channels play for brands like Coca Cola or HUL?

They ensure product availability in various locations, even in remote areas Signup and view all the answers

What is a key benefit of leveraging existing channels for business growth?

Gaining immediate entry into new customer segments Signup and view all the answers

How can a new drink brand effectively attract customers?

By placing products in various channels and using competitive campaigns Signup and view all the answers

What defines the core competency of an organization?

The unique synergy of resources and capabilities for competitive advantage Signup and view all the answers

What aspect of a Bosch dishwasher sales strategy emphasizes customer support after purchase?

Contracting a plumber for installation services Signup and view all the answers

What must a core competence provide to a company to impact its market position?

It must have real impact on the customer. Signup and view all the answers

Which of the following is NOT a condition for a competency to be considered a core competency?

It must be specific to one particular skill. Signup and view all the answers

How can a company successfully launch new brands in the market?

By using superior marketing capabilities. Signup and view all the answers

What is a key advantage that Wal-Mart derives from its core competency?

Low pricing due to high sales volume. Signup and view all the answers

Which aspect is NOT included in the definition of core competencies?

Market analysis capabilities. Signup and view all the answers

What factor contributes to a company's ability to leverage core competencies across different markets?

Integration of various technological and human resources. Signup and view all the answers

Which organizational function is an example of a core competence for Hindustan Unilever Limited?

Marketing and Sales. Signup and view all the answers

What characterizes core competencies in an organization?

They represent unique skills applied across the organization. Signup and view all the answers

The goal of SWOT analysis is to the organization's opportunities and strengths while its threats and its weaknesses.

exploit; neutralizing; correcting Signup and view all the answers

SWOT analysis evaluates the organization's strengths and weaknesses and its opportunities and threats.

internal; external Signup and view all the answers

External opportunities and threats are usually considered:

largely uncontrollable activities outside the organization Signup and view all the answers

The sustainability of competitive advantage depends upon:

Appropriability, durability, transferability, imitability Signup and view all the answers

Internal __________ are activities in an organization that are performed especially well.

Strengths Signup and view all the answers

‘Strategic group mapping’ helps in:

Identifying weakest and strongest rival companies Signup and view all the answers

In Michael Porter’s generic strategy, _____________ emphasizes producing standardized products at a very low per unit cost for consumers who are price sensitive.

Cost leadership Signup and view all the answers

Differentiation Strategy can be achieved by which of the following measures?

Matching products with tastes and preferences of customers Signup and view all the answers

What type of business-level strategy is employed by Mota Shoes through its partnership with Buffrine?

Differentiation Signup and view all the answers

Which advantage does high pricing of Hide Seek products offer to Mota Shoes?

Enhances brand prestige Signup and view all the answers

What competency should Rohit Patel focus on to compete with online medicine sellers?

Personalized customer service Signup and view all the answers

What is the core competence of the 'Value for Money' retail chain?

Operational efficiency and low-cost procurement Signup and view all the answers

What purpose does a SWOT analysis primarily serve for a business organization?

To evaluate internal and external factors Signup and view all the answers

Why is it important to conduct a SWOT analysis before selecting a business strategy?

It identifies potential risks and advantages Signup and view all the answers

What strategy might contribute to the success of league matches in sports such as Football and Kabaddi in India?

Greater entertainment value and profit generation Signup and view all the answers

Which of the following best describes an opportunity within the context of strategic planning?

A favorable condition that strengthens a business's position Signup and view all the answers

Study Notes

Distribution Channels and Market Penetration

Australia Post facilitates delivery for online purchases, including eBay transactions.
Service channels provide necessary support for products, especially those requiring installation or assistance.
Businesses must analyze their distribution channels when planning expansion into new markets.
Targeted strategies are essential for reaching specific demographics, such as elderly customers who may rely on offline modes.
New brands should utilize multiple channels for visibility and customer acquisition, such as in-store placements and online marketing campaigns.
Successful brands like Coca Cola and Ola have established competitive advantages through effective distribution channels.

Role of Resources and Core Competency

Organizations leverage resources and capabilities to create distinct competencies beneficial for competitive advantage.
Core competencies must deliver real value to customers and be applicable across the organization, not limited to a single area.
Hindustan Unilever Limited (HUL) exemplifies core competency through its marketing and sales expertise, allowing successful brand launches.
Wal-Mart's core competency lies in its cost reduction strategies, enabling competitive pricing.
Non-substitutable capabilities provide a strategic advantage when unique organizational attributes cannot be replicated by competitors.
Apple’s iOS system showcases non-substitutable capabilities that enhance its competitive edge.

SWOT Analysis

SWOT analysis evaluates internal strengths and weaknesses alongside external opportunities and threats.
The goal is to exploit strengths and opportunities while neutralizing weaknesses and threats.
Implementing SWOT analysis is vital for informed decision-making before pursuing new initiatives or strategies.
External opportunities and threats are largely uncontrollable factors outside the organization that impact success or failure.
Core competencies must be supported and developed over time to sustain competitive advantages.

Strategic Insights

Michael Porter’s generic strategies highlight cost leadership as producing standardized low-cost products for price-sensitive consumers.
Differentiation can be achieved through customer alignment, performance enhancement, and strategic partnerships.
Retail chains like ‘Value for Money’ focus on low-cost operations and efficient procurement to maintain market leadership.
SWOT analysis serves as a foundation for strategic planning and risk assessment in business environments.

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Description

Explore how distribution channels impact market penetration and customer acquisition in various demographics. Understand the importance of resources and core competencies in building competitive advantages for brands like Coca Cola and Ola.