Resources Capabilities
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5
Analyzing Resources and Capabilities
Analysts have tended to define assets too narrowly, identifying only those that can be measured, such as plant and equipment. Yet the intangible assets, such as a particular technology, accumulated consumer information, brand name, reputation, and corporate culture, are invaluable to the firm’s competitive power. In fact, these invisible assets are often the only real source of competitive edge that can be sustained over time.
—HIROYUKI ITAMI, MOBILIZING INVISIBLE ASSETS
You’ve gotta do what you do well.
—LUCINO NOTO, FORMER VICE CHAIRMAN, EXXON MOBIL
OUTLINE l Introduction and Objectives l The Role of Resources and l Organizational Capabilities Classifying Capabilities The Architecture of Capability l Appraising Resources and Capabilities Establishing Competitive Advantage Sustaining Competitive Advantage Appropriating the Returns to Competitive Advantage l Putting Resource and Capability
Capabilities in Strategy Formulation
Basing Strategy on Resources and Capabilities Resources and Capabilities as Sources of Profit l The Resources of the Firm Tangible Resources Intangible Resources Human Resources
Analysis to Work: A Practical Guide
Step 1 Identify the Key Resources and Capabilities
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PART II
THE TOOLS OF STRATEGY ANALYSIS
Step 2 Appraising Resources and Capabilities Step 3 Developing Strategy Implications l Developing Resources and Capabilities The Relationship between Resources and Capabilities Replicating Capabilities Developing New Capabilities Approaches to Capability Development
l Summary l Self-Study Questions l Appendix: Knowledge Management
and the Knowledge-based View of the Firm l Notes
Introduction and Objectives
In Chapter 1, I noted that the focus of strategy thinking has been shifted from the external environment towards its internal environment. In this chapter, we will make the same transition.
5
Analyzing Resources and Capabilities
Analysts have tended to define assets too narrowly, identifying only those that can be measured, such as plant and equipment. Yet the intangible assets, such as a particular technology, accumulated consumer information, brand name, reputation, and corporate culture, are invaluable to the firm’s competitive power. In fact, these invisible assets are often the only real source of competitive edge that can be sustained over time.
—HIROYUKI ITAMI, MOBILIZING INVISIBLE ASSETS
You’ve gotta do what you do well.
—LUCINO NOTO, FORMER VICE CHAIRMAN, EXXON MOBIL
OUTLINE l Introduction and Objectives l The Role of Resources and l Organizational Capabilities Classifying Capabilities The Architecture of Capability l Appraising Resources and Capabilities Establishing Competitive Advantage Sustaining Competitive Advantage Appropriating the Returns to Competitive Advantage l Putting Resource and Capability
Capabilities in Strategy Formulation
Basing Strategy on Resources and Capabilities Resources and Capabilities as Sources of Profit l The Resources of the Firm Tangible Resources Intangible Resources Human Resources
Analysis to Work: A Practical Guide
Step 1 Identify the Key Resources and Capabilities
123
CSAC05 1/13/07 9:21 Page 124
124
PART II
THE TOOLS OF STRATEGY ANALYSIS
Step 2 Appraising Resources and Capabilities Step 3 Developing Strategy Implications l Developing Resources and Capabilities The Relationship between Resources and Capabilities Replicating Capabilities Developing New Capabilities Approaches to Capability Development
l Summary l Self-Study Questions l Appendix: Knowledge Management
and the Knowledge-based View of the Firm l Notes
Introduction and Objectives
In Chapter 1, I noted that the focus of strategy thinking has been shifted from the external environment towards its internal environment. In this chapter, we will make the same transition.