For business and management decision

3. what firm might choose to do Opportunities and threats General Environment General Environment General Environment Sociocultural Global Technological Political/Legal Demographic Economic Industry Environment Competitor Environment

4. identify what they can do (over time) Unique resources, capabilities, and core competencies The Firm

7. Capabilities are what a firm does, and represent the firm’s capacity or ability to integrate individual firm resources to achieve a desired objective markets for capabilities are imperfect Discovering Core Competencies Capabilities

8. Core competencies are resources and capabilities that serve as a source of competitive advantage over rivals Core competencies distinguish a company competitively and make it distinctive Discovering Core Competencies Core Competencies

13. Valuable? Rare? Costly to Imitate ? Nonsubstitutable Competitive Consequences Performance Implications No No No No Competitive Disadvantage Below Average Returns Yes No No Yes/ No Competitive Parity Average Returns Yes Yes No Yes/ No Temporary Com- petitive Advantage Above Average to Average Returns Yes Yes Yes Yes Sustainable Com- petitive Advantage Above Average Returns

14. Questions? Thank You