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Internal Situation Analysis And Competitive Strength

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Section 6 Lecture Notes for Chapter 4 357 Chapter Chapter Summary 4 Internal Situation Analysis: Evaluate a Company’s Resources, Cost Position and Competitive Strength Chapter Four discusses the techniques of evaluating a company’s internal situation, including its collection of valuable resources and capabilities, its relative cost position, and its competitive strength versus its rivals. The analytical spotlight will be trained on five questions: (1) How well is the company’s present strategy working? (2) What are the company’s competitively important resources and capabilities? (3) Are the company’s prices and costs competitive? (4) Is the company competitively stronger or weaker than key rivals? (5) What strategic …show more content…

Core Concept A competence is an activity that a company performs well. C. Resources and Capabilities as the Foundation of Competitive Advantage. One of the most important aspects of identifying resource strengths and capabilities has to do with a company’s competence level in performing key pieces of its business. Section 6 Lecture Notes for Chapter 4 359 Core Concept A core competence is a competitively important activity that a company performs better than other internal activities  A competence is an internal activity an organization performs with proficiency.  A core competence is a proficiently performed internal activity that is central to a company’s strategy and competitiveness. A core competence is a more valuable resource strength than a competence because of the well-performed activity’s core role in the company’s strategy and the contributions it makes to the company’s success in the marketplace.  A distinctive competence is a competitively important activity that a company performs better than its rivals. Core Concept A distinctive competence is a competitively important activity that a company performs better than its rivals, therefore offering the potential for competitive advantage. 1. The conceptual differences between a competence, a core competence, and a distinctive competence draw attention to the fact that competitive capabilities are not all equal. 2. Core competencies are

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