5. RESOURCE-BASED APPROACH
SUSTAINABILITY OF AN ADVANTAGE
SUSTAINABILITY
OF FIRM’S
DISTINCTIVE
COMPETENCIES
DURABILITY
IMITABILITY:
o Transparency
o Transferability
o Replicability
7. BUSINESS MODELS
Business model is a company’s method for making money in the
current business environment.
Business model is usually composed of five elements:
Who is serves
What it provides
How it makes money
How it differentiates and sustains competitive advantage
How it provides its product/service.
8. BUSINESS MODELS
1. Traditional model (Provide a good/service that can be sold).
2. Customer solutions model
3. Profit pyramid model
4. Multi-component system/installed base model
5. Advertising model
6. Switchboard model
7. Time model
8. Efficiency model
9. Blockbuster model
10. Profit multiplier model
11. Entrepreneurial model
12. De Facto industry standard model
9. VALUE-CHAIN ANALYSIS
A value chain is a linked set of value-creating
activities that begin with basic raw materials
coming from suppliers, moving on to a series
of value-added activities involved in producing
and marketing a product or service, and
ending with distributors getting the final
goods into the hands of the ultimate customer.
14. SCANNING FUNCTIONAL
RESOURCES & CAPABILITIES
Corporate Culture: The Company Way
Corporate culture is the collection of
beliefs, expectations, and values learned
and shared by a corporation’s members
and transmitted from one generation of
employees to an other.
15. STRATEGIC FUNCTIONAL ISSUES
Strategic Marketing Issues:
Market Position and Segmentation
Marketing Mix
Product Life Cycle
Brand and Corporate Reputation
19. STRATEGIC FUNCTIONAL ISSUES
Strategic Human Resources (HR) Issues:
Increasing Use of Teams
Union Relations and Temporary/Part-Time
Workers
Quality of Work Life & Human Diversity
20. EXERCISES (DISCUSSION
QUESTIONS)
1. What is the relevance of the resource-based view of the firm to
strategic management in a global environment?
2. How can value-chain analysis help identify a company’s strengths
and weaknesses?
3. In what ways can a corporation’s structure and culture be
internal strengths or weaknesses?
4. What are the pros and cons of management’s using the
experience curve to determine strategy?
5. How might a firm’s management decide whether it should
continue to invest in current known technology or in new, but
untested technology? What factors might encourage or
discourage such a shift?