Strategic capabilities and competitive advantage
Exhibit 3.2
Strategic capability: the terminology
Exhibit 3.3
Sources of cost efficiency
Exhibit 3.4
The experience curve
Exhibit 3.5
Criteria for inimitability of strategic capabilities
Analyzing Resources & Capabilities
OUTLINE
• The role of resources and capabilities in strategy formulation. • The resources of the firm • Organizational capabilities • Appraising the profit potential of resources and capabilities • Putting resource and capability analysis to work—a practical guide • Creating new capabilities.
Shifting the Focus of Strategy Analysis: From the External to the Internal Environment
THE FIRM Goals and Values Resources and Capabilities Structure and Systems
THE INDUSTRY ENVIRONMENT
STRATEGY
STRATEGY
•Competitors •Customers •Suppliers
The Firm-Strategy Interface
The Environment-Strategy Interface
Rationale for the Resource-based Approach to Strategy
• When the external environment is subject to rapid change, internal resources and capabilities offer a more secure basis for strategy than market focus.
• Resources and capabilities are the primary sources of profitability
The Evolution of Honda Motor Company
Honda Technical Research Institute founded 1st Competes in Isle of Man TT motorcycle races 4-cylinder 750cc motorcycle 1st gasoline-powered car to meet US Low Emission Vehicle Standard Civic Hybrid (dual gasoline/ electric)
motorcycle: 98cc, 2-cycle Dream D
Portable generator
405cc motor cycle 1955 1960 1965 1970
Power products: ground tillers, marine engines, generators, pumps, chainsaws snowblowers
Civic GS (natural gas powered)
1946 1950
1975
1980
1985
1990
1995
2000
4 cycle engine
The 50cc Supercub
N360 mini car Honda Civic 1000cc Goldwing touring motor cycle
Acura Car division
Home cogeneration system
First product: Model A clip-on engine for bicycles
Enters
Links: The World’s Most Valuable Brands, 2006 Rank Company Brand value ($bn.) Rank Company Brand value ($bn.)