Analysis of Telkom
RESOURCE-BASED ANALYSIS OF TELKOM
CONTENTS:
1. INTRODUCTION 3
2. DEFINITION 3
3. RESOURCE-BASED ANALYSIS OF TELKOM
AND IMPLICATIONS FOR FUTURE STRATEGIES 3-4
3.1 RESOURCES AND CAPABILITIES 4
3.1.1 RESOURCES 4
3.1.2 CAPABILITIES 4-5
3.1.3 COST ADVANTAGE AND
DIFFIRENTIATION ADVANTAGE 5-6
3.1.4 COMPETITVE PRICING AND VALUE GROWTH 6
3.1.5 VALUE CREATION 6-7
4. ARE THE STRATEGIES SUSTAINABLE OR NOT? 7-9
5. EXTERNAL FORCES PLAYING A ROLE 9
6. INTERNATIONAL MARKET 9-10
7. CONCLUSION AND RECOMMENDATION 10-11
8. BIBLIOGRAPHY 11
1. INTRODUCTION:
In order for me to undertake a resource-based analysis of Telkom and whether or not they are appropriate for Telkom and the implications it holds for the future strategy of the company, I would like to firstly refer to the Definition of a resource-based view.
2. DEFINITION:
The resource-based view (RBV) is a business management tool used to determine the strategic resources available to a company, in this instant I will be looking at Telkom. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm 's disposal (Porter, 1998).
When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The good of business strategy is to achieve a sustainable competitive advantage.
Michael Porter identified two basic types of competitive advantage:
1. Cost advantage;
2. Differentiation advantage.
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing
CONTENTS:
1. INTRODUCTION 3
2. DEFINITION 3
3. RESOURCE-BASED ANALYSIS OF TELKOM
AND IMPLICATIONS FOR FUTURE STRATEGIES 3-4
3.1 RESOURCES AND CAPABILITIES 4
3.1.1 RESOURCES 4
3.1.2 CAPABILITIES 4-5
3.1.3 COST ADVANTAGE AND
DIFFIRENTIATION ADVANTAGE 5-6
3.1.4 COMPETITVE PRICING AND VALUE GROWTH 6
3.1.5 VALUE CREATION 6-7
4. ARE THE STRATEGIES SUSTAINABLE OR NOT? 7-9
5. EXTERNAL FORCES PLAYING A ROLE 9
6. INTERNATIONAL MARKET 9-10
7. CONCLUSION AND RECOMMENDATION 10-11
8. BIBLIOGRAPHY 11
1. INTRODUCTION:
In order for me to undertake a resource-based analysis of Telkom and whether or not they are appropriate for Telkom and the implications it holds for the future strategy of the company, I would like to firstly refer to the Definition of a resource-based view.
2. DEFINITION:
The resource-based view (RBV) is a business management tool used to determine the strategic resources available to a company, in this instant I will be looking at Telkom. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm 's disposal (Porter, 1998).
When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The good of business strategy is to achieve a sustainable competitive advantage.
Michael Porter identified two basic types of competitive advantage:
1. Cost advantage;
2. Differentiation advantage.
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing
Bibliography: 1. Cairns, P. (2011). The investment Case – Telkom SA LTD [Online]. 4. Kekana, N. 2002. ‘Information, communication and transformation: a South-African perspective’, Communication, 28(2): 54-61; 5