Evaluating Company Resources and Competitiveness

A competitive asset owned or controlled by a firm.

A firm's ability to perform an internal activity competently.

Physical assets like manufacturing plants, equipment, or locations.

Non-physical assets like patents, technology, or reputation.

Cash, investments, and borrowing capacity.

Patents, copyrights, and advanced production technology.

Structures, systems, and networks within a company.

The benefit a company receives from its resources and capabilities.

A test to identify valuable, rare, inimitable, and nonsubstitutable resources or capabilities, crucial for sustainable competitive advantage.

A firm's ability to maintain a favorable market position over time due to resources or capabilities that are difficult for rivals to match.

A factor that makes imitating a resource or capability difficult because it involves intricate social relationships and networks.

The difficulty rivals face in determining how a complex resource contributes to competitive advantage, hindering imitation.

Valuable employees, know-how, experience and learning in businesses.

Brand names, trademarks, product image, buyer loyalty, and reputation for quality service.

Alliances, joint ventures, and trust with partners that provide market access and know-how.

A company's ability to create new or improved products that meet customer needs and are better than rivals' offerings.

A company's ability to optimize its manufacturing or service delivery processes to increase efficiency, quality, and cost-effectiveness.

A company's ability to manage its network of suppliers, manufacturers, and distributors effectively to ensure timely and reliable delivery of products or services.

A company's ability to provide attentive, responsive, and helpful support to its customers, exceeding their expectations.

A company's reputation and perception in the market, built through consistent messaging, quality products, and positive customer experiences.

A company's ability to reach a large market area through its distribution channels, expanding its reach and customer base.

Partnerships between companies that allow them to share resources, knowledge, and expertise to achieve common goals.

A company lacking a clear vision or goals for its future, resulting in confusion and a lack of focus.

Two main approaches to leverage a low-cost advantage: 1. Underprice competitors to attract price-sensitive buyers, aiming for increased total profits. 2. Maintain current pricing, enjoy existing market share, and use lower costs to boost profit margin per unit.

The steps involved in creating and delivering a product or service, including sourcing raw materials, manufacturing, marketing, and distribution.

A factor that significantly influences a company's expenses for its value chain activities.

Cost advantages gained by producing goods or services in larger quantities, leading to lower per-unit costs.

Cost reduction associated with accumulated production experience, as workers become more efficient and processes are refined.

The ability to negotiate favorable prices and terms with suppliers, potentially leading to lower input costs.

Hiring external companies to perform specific tasks or activities, potentially leading to lower costs and improved efficiency.

The efficiency of labor in producing goods or services, measured by output per worker hour.

When different businesses within a company share similar value chain activities, allowing for resource sharing, cost savings, and brand synergy.

The ability to move valuable skills, expertise, or knowledge between different businesses within a company.

When different businesses within a company can share costs by combining value chain activities.

Using a strong brand name or reputation across different businesses within a company to increase customer trust and loyalty.

Connections between the value chain activities of different businesses within a company, enabling cost savings and efficiencies.

A framework that links a company's vision and mission to strategic goals, objectives, measures, and initiatives.

The most important areas of focus for a company to achieve its long-term vision and mission.

The extra price a company can charge for its product or service due to its unique features and perceived value, compared to competitors.

Actions taken by companies to communicate the value of their products or services to potential buyers, especially when features are subjective or buyers are unfamiliar.

A differentiation strategy is most successful when customer needs are varied, there are many ways to differentiate, few competitors are doing the same thing, and technology is rapidly evolving.

Common mistakes companies make when pursuing a differentiation strategy, such as copying easily, offering features of little value, overspending, not creating a significant difference, over-differentiating, or charging too high a premium.

A strategy targeting a specific, narrow segment of the market, like a geographic region or a specific product attribute, to achieve a competitive advantage.

Non-economic elements that contribute to customer satisfaction and loyalty, such as a brand's reputation, customer service, or a sense of belonging.

A type of differentiation where the value of the product or service is based on personal opinions, preferences, or feelings.

The initial purchase of a product or service by a customer.