Nike's core competency is its ability to create and leverage athlete endorsements effectively. It strategically selects athletes who align with its brand image and values, and invests in elevating them into heroes through storytelling and marketing. While risky, as athletes may face controversies, this approach has driven Nike's historical success in building its brand around athletics globally. VRIO analysis shows that while imitable, Nike's competency provides value and is challenging for competitors to fully replicate due to its experience, reputation, and resources to organize capturing value from athlete endorsements.
Class Plan 3 The early bird may get the worm, but the se.docxmonicafrancis71118
Class Plan 3 “The early bird may get the worm, but the second mouse gets the cheese” AnonymousQuestions for the next caseBrief discussion of the Apollo caseReview of 5-forces, including exercise Move on to Chapter 3 on Internal Analysis + extra information on VRIO approachExercises & video on Internal Analysis
Questions for the Nokia case
Have Nokia’s mission and vision (or their implementation) been partially responsible for their faltering performance?
Using the 5-forces model, what industry threats should Nokia have identified in their strategic pursuits?
What can Nokia do to continue to compete globally and domestically?
Porter’s Five Forces Model (Fig 2.2 p45 adapted)
Rivalry among established firms
Risk of entry by potential competitors
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products
Special role of complements
Product Lifecycle
Time
Demand
Embryonic
Growth
Shakeout
Mature
Declining
Macro-environmental Forces [Environmental Scanning]
Macroeconomics: growth rate of the economy, interest rates, currency exchange rates, inflation rates
Technological: “creative destruction”, shifting barriers to entry
Social: lifestyles, trends and attitudes
Demographics: composition of the population, factors such as income distribution, education, labour mobility, gender
Political & Legal : deregulation and free trade
Global: falling barriers to trade, new economic development
More on 5-forces model
Strategic Groups Def.: subsections of industry with the same basic strategy in-group
Implications: closest competitors are in the same groupgroups, to some extent, face different 5+-forcesexit & entry barriers exist between groups
Limitations of 5+-Forces & Strategic Groups models Static picture with limited attention to innovation. Industries evolve “unfrozen and reshaped” by technology : punctuated equilibrium hyper-competitive industries with no equilibriumdownplays individual company differencesstudies show that industry only accounts for 10%-20% of variance in firms’ profit rates
Internal AnalysisThe purpose of internal analysis is to pinpoint the strengths and weaknesses of the organization.
Strengths lead to superior performance. Weaknesses lead to inferior performance.
Internal Analysis includes an assessment of:Quantity and quality of a company’s resources and capabilitiesWays of building unique skills and company-specific or distinctive competencies
The Theory Behind Internal Analysis
The Resource-Based View
• developed to answer the question: Why do some
firms achieve better economic performance
than others?
• assumes that a firm’s resources and capabilities
are the primary drivers of competitive advantage
and economic performance
• used to help firms achieve competitive advantage
and superior economic performance
The Resource-Based View
Resources and Capabilities
Resources:
• tangible and intangible assets of a firm
» .
Class Plan 3 The early bird may get the worm, but the se.docxmonicafrancis71118
Class Plan 3 “The early bird may get the worm, but the second mouse gets the cheese” AnonymousQuestions for the next caseBrief discussion of the Apollo caseReview of 5-forces, including exercise Move on to Chapter 3 on Internal Analysis + extra information on VRIO approachExercises & video on Internal Analysis
Questions for the Nokia case
Have Nokia’s mission and vision (or their implementation) been partially responsible for their faltering performance?
Using the 5-forces model, what industry threats should Nokia have identified in their strategic pursuits?
What can Nokia do to continue to compete globally and domestically?
Porter’s Five Forces Model (Fig 2.2 p45 adapted)
Rivalry among established firms
Risk of entry by potential competitors
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products
Special role of complements
Product Lifecycle
Time
Demand
Embryonic
Growth
Shakeout
Mature
Declining
Macro-environmental Forces [Environmental Scanning]
Macroeconomics: growth rate of the economy, interest rates, currency exchange rates, inflation rates
Technological: “creative destruction”, shifting barriers to entry
Social: lifestyles, trends and attitudes
Demographics: composition of the population, factors such as income distribution, education, labour mobility, gender
Political & Legal : deregulation and free trade
Global: falling barriers to trade, new economic development
More on 5-forces model
Strategic Groups Def.: subsections of industry with the same basic strategy in-group
Implications: closest competitors are in the same groupgroups, to some extent, face different 5+-forcesexit & entry barriers exist between groups
Limitations of 5+-Forces & Strategic Groups models Static picture with limited attention to innovation. Industries evolve “unfrozen and reshaped” by technology : punctuated equilibrium hyper-competitive industries with no equilibriumdownplays individual company differencesstudies show that industry only accounts for 10%-20% of variance in firms’ profit rates
Internal AnalysisThe purpose of internal analysis is to pinpoint the strengths and weaknesses of the organization.
Strengths lead to superior performance. Weaknesses lead to inferior performance.
Internal Analysis includes an assessment of:Quantity and quality of a company’s resources and capabilitiesWays of building unique skills and company-specific or distinctive competencies
The Theory Behind Internal Analysis
The Resource-Based View
• developed to answer the question: Why do some
firms achieve better economic performance
than others?
• assumes that a firm’s resources and capabilities
are the primary drivers of competitive advantage
and economic performance
• used to help firms achieve competitive advantage
and superior economic performance
The Resource-Based View
Resources and Capabilities
Resources:
• tangible and intangible assets of a firm
» .
Discuss the relationships between competitive avantage, istinctive c.pdfinfo706022
Discuss the relationships between competitive avantage, istinctive compentencies, resources,an
capabilities.
Solution
Resources
The activities and processes of the organization utilize certain assets. These assets are called
resources. These resources can be created within the organization. They form the internal
resources. Such generated resources are organization-specific. Otherwise they could be obtained
externally from the suppliers available in the resource markets. They form the external resources.
The externally obtained resources are organization-addressable. In addition resources can be
categorised as specific or non-specific. Those resources which can only be used for extremely
specialized intentions and are significant to the organization in adding value to goods and
services are called specific resources.
Resources
Resources of the firm can include all assets, capabilities, organizational processes, firm
attributes, information and knowledge. In short resources can be considered as inputs that
facilitate the organization to perform its activities.
All resources that an organization has may not have strategic relevance. Only certain resources
are capable of being an input to a value creating strategy which put the organization in a position
of competitive advantage. An organization’s resource should have four attributes to provide the
potential for competitive advantage. These form the VRIN characteristics.
The VRIN characteristics
The important features for a resource to be strategically important are as below
The VRIN characteristics mentioned above are individually necessary for the resources to be
valuable.
Non-specific resources are less specific and are less significant in adding value. Also resources
can be broadly classified as tangible and intangible. The physical assets that an organization
possesses are called tangible resources. The physical resources, human resources and final
resources come under this category.
The intellectual resources, technological resources and the organizational reputation together
form the intangible resources. The patents and copyrights of the organization are typical
examples of intellectual resources. The innovation capacity and innovation speed are examples
of technological resources. Reputation is basically good-will that the organization has acquired
among the customers. It is a critical resource of an organization.
Competencies
An organization should posses some characteristics in order to have the ability to compete with
other organizations in the market place. These characteristics form the competencies of the
organization. For any organization to survive in an industry competencies are must. At the same
time competencies cannot be useful to an organization when they stand alone. It is when they
combine together in the right combination that they help the organization to attain competitive
advantage. For instance consider an information technology organization. For this to compete in
t.
Business analysis tips as per Gabrielle Rusignuolo are helpful in our growth of business. These business analysis tips are beneficial for promoting our business and take it at top most.
How to build and reconstruct an organization?
What is the strategy should be taken by an organization?
What is the capabilities and competencies of an organization?
Distinctive Competencies.
Assessing the internal environment of the firmMohsinAhmed122
The benefits and limitations of SWOT analysis in conducting the internal analysis of the firm.The primary and support activities of the firm’s value chain Advantage of the value chain within the firm and between the firm and its customers and suppliers.The different types of tangible and intangible resources, as well as organizational capabilities. The four criteria that a firm's resources must possess to maintain a sustainable advantage. The usefulness of financial ratio analysis as well as its inherent limitations.How to make meaningful comparisons of performance across a firm.The value of recognizing how the interests of a variety of stakeholders can be interrelated.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Discuss the relationships between competitive avantage, istinctive c.pdfinfo706022
Discuss the relationships between competitive avantage, istinctive compentencies, resources,an
capabilities.
Solution
Resources
The activities and processes of the organization utilize certain assets. These assets are called
resources. These resources can be created within the organization. They form the internal
resources. Such generated resources are organization-specific. Otherwise they could be obtained
externally from the suppliers available in the resource markets. They form the external resources.
The externally obtained resources are organization-addressable. In addition resources can be
categorised as specific or non-specific. Those resources which can only be used for extremely
specialized intentions and are significant to the organization in adding value to goods and
services are called specific resources.
Resources
Resources of the firm can include all assets, capabilities, organizational processes, firm
attributes, information and knowledge. In short resources can be considered as inputs that
facilitate the organization to perform its activities.
All resources that an organization has may not have strategic relevance. Only certain resources
are capable of being an input to a value creating strategy which put the organization in a position
of competitive advantage. An organization’s resource should have four attributes to provide the
potential for competitive advantage. These form the VRIN characteristics.
The VRIN characteristics
The important features for a resource to be strategically important are as below
The VRIN characteristics mentioned above are individually necessary for the resources to be
valuable.
Non-specific resources are less specific and are less significant in adding value. Also resources
can be broadly classified as tangible and intangible. The physical assets that an organization
possesses are called tangible resources. The physical resources, human resources and final
resources come under this category.
The intellectual resources, technological resources and the organizational reputation together
form the intangible resources. The patents and copyrights of the organization are typical
examples of intellectual resources. The innovation capacity and innovation speed are examples
of technological resources. Reputation is basically good-will that the organization has acquired
among the customers. It is a critical resource of an organization.
Competencies
An organization should posses some characteristics in order to have the ability to compete with
other organizations in the market place. These characteristics form the competencies of the
organization. For any organization to survive in an industry competencies are must. At the same
time competencies cannot be useful to an organization when they stand alone. It is when they
combine together in the right combination that they help the organization to attain competitive
advantage. For instance consider an information technology organization. For this to compete in
t.
Business analysis tips as per Gabrielle Rusignuolo are helpful in our growth of business. These business analysis tips are beneficial for promoting our business and take it at top most.
How to build and reconstruct an organization?
What is the strategy should be taken by an organization?
What is the capabilities and competencies of an organization?
Distinctive Competencies.
Assessing the internal environment of the firmMohsinAhmed122
The benefits and limitations of SWOT analysis in conducting the internal analysis of the firm.The primary and support activities of the firm’s value chain Advantage of the value chain within the firm and between the firm and its customers and suppliers.The different types of tangible and intangible resources, as well as organizational capabilities. The four criteria that a firm's resources must possess to maintain a sustainable advantage. The usefulness of financial ratio analysis as well as its inherent limitations.How to make meaningful comparisons of performance across a firm.The value of recognizing how the interests of a variety of stakeholders can be interrelated.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
1. Internal Analysis
• Resources, Capabilities,
Competencies
• Distinctive Capabilities
• Group E
• Jay Khetan & Mam Mass Sey
2. To formulate and implement a strategy
that enhances the firm’s chances of
gaining and sustaining competitive
advantage, the firm must have certain
types of resources and capabilities that
combine to form core competencies.
External Analysis to Internal Analysis
3. Looking inside the firm to analyse allow us to understand the firm’s
- Strengths, and
- weakness.
Strategic leaders want to leverage their firm’s internal strength to
exploit external opportunities and mitigate internal weakness and
external threats.
External Analysis to Internal Analysis
4. Linking Core Competencies, Resources, Capabilities
Capabilities
Organizational and managerial skills
necessary to orchestrate a diverse set of
resources and deploy them strategically.
Resources
Any assets that a firm can draw on when
formulating and implementing a strategy.
Core Competencies
Unique strengths, embedded deep within
a firm, that are critical to gaining and
sustaining competitive advantage.
Competetive Advantage
6. Resource Based View
Resource Based View
In the resource-based view of the firm, a resource includes any assets as well as any capabilities and
competencies that a firm can draw upon when formulating and implementing strategy.
7. Resource Based View
Resource Based View
In the resource-based view of the firm, a resource includes any assets as well as any capabilities and
competencies that a firm can draw upon when formulating and implementing strategy.
Resource
Immobility
Assumption in the resource-based view that a firm has resources that tend to be “sticky” and that do
not move easily from firm to firm.
The resource differences that exist between firms are difficult to replicate and, therefore, can last for
a long time.
Resource Heterogeneity
Bundles of resources, capabilities, and competencies differ across firms
looking more critically at the resource bundles of firms competing in the same industry
Two Critical assumptions
9. Valuable
A resource is valuable if
It enables the firm to exploit an external opportunity
It enables the firm to offset a threat
It enables a firm to increase its economic value
creation (V – C) – There is demand for the resource
10. Rare
A resource is Rare if
The number of firms that possess it is less than the
number of firms it would require to reach a state of
perfect competition.
If the resource is common, it will result in perfect
competition where no firm is able to maintain a
competitive advantage
11. Imitation Costly
A Resource is costly to imitate if
A resource is costly to imitate if firms that do not
possess the resource are unable to develop or buy
the resource at a comparable cost.
12. Organised to Capture Value
A Resource is Organised to capture value if
It has an effective organizational structure
It has coordinating systems
Example – Xerox Palo Alto Research Center (PARC)
Developed the first Word-processing application Graphical User Interface
(GUI), Ethernet, Mouse, Personal Computer– These innovations did not fit
within the Xerox focus– Management was busy pursuing innovations in
the
photocopier business - not organized to capture the gains!
13. Isolating Mechanisms
Barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.
Better expectations of
future resource value
Causal Ambiguity Intellectual property
(IP) Protection
Path Dependence Social Complexity
1 2 3 4 5
14. Organised to Capture Value
A Resource is Organised to capture value if
It has an effective organizational structure
It has coordinating systems
Example – Xerox Palo Alto Research Center (PARC)
Developed the first Word-processing application Graphical User Interface
(GUI), Ethernet, Mouse, Personal Computer– These innovations did not fit
within the Xerox focus– Management was busy pursuing innovations in
the
photocopier business - not organized to capture the gains!
16. The Dynamic
Capabilities Perspective
• Dynamic capabilities are a
fundamental concept in strategic
management.
• They refer to a firm's ability to
adapt and innovate in response to
changing external environments.
• This perspective focuses on how
firms manage their resources to
create competitive advantage.
17. Dynamic Capabilities Defined
• Dynamic Capabilities
• Dynamic capabilities involve the ability to sense changes in the business environment.
• They also include the ability to seize opportunities and reconfigure resources to address these
changes effectively.
• Essentially, it's about a firm's capacity for continuous adaptation and innovation.
18. Resource Stocks and
Resource Flows
Key Components of Dynamic Capabilities
• Resource Stocks: These are a firm's existing assets,
capabilities, and knowledge base.
• Resource Flows: These represent how resources
are combined, reconfigured, and deployed in
response to changing conditions.
19. Core Rigidities
• Understanding Core Rigidities
• Core rigidities are an important concept introduced by Leonard-
Barton.
• They refer to a situation where a firm's past strengths become its
weaknesses when it is unable to adapt to changing circumstances.
Core Rigidities in Depth
• Core rigidities can arise when a firm becomes too specialized in its
existing capabilities.
• They hinder the development of new capabilities and limit the
firm's ability to respond to changing market conditions.
20. Overcoming Core Rigidities
Addressing Core Rigidities
• Firms can overcome core rigidities by fostering a
culture of innovation and adaptability.
• Encouraging cross-functional teams, continuous
learning, and diversification can help mitigate core
rigidities.
21. Implications for
Strategic
Management
Practical Implications
• Understanding dynamic
capabilities and core rigidities
is crucial for strategic
management.
• Firms should continuously
assess their resource stocks,
resource flows, and their
ability to adapt to remain
competitive.
22. Unlocking Competitive
Advantage: The Value Chain
and Strategic Activity Systems
The Value Chain and Strategic Activity
Systems
• These concepts are fundamental to
understanding how firms create value
and achieve competitive advantage.
• They provide a framework for analyzing
and improving a company's operations
and strategic activities.
23. The Value Chain
Defined
What is the Value Chain?
The value chain is a concept introduced by
Michael Porter.
It represents the sequence of activities
that a firm engages into design, produce,
market, deliver, and support its products
or services.
24. Value Chain
Activities
Key Components of the Value
Chain
• Primary Activities: These are
directly involved in creating
and delivering the product or
service to customers (e.g.,
production, marketing, sales).
• Support Activities: These
activities enable and enhance
the primary activities (e.g.,
HR, technology, procurement).
25. Value Chain Analysis
Why Analyze the Value Chain?
Value chain analysis helps identify areas
where a company can create value,
reduce costs, or differentiate itself.
It aids in strategic decision-making by
highlighting strengths and weaknesses in
the value-creating process.
26. Strategic Activity
Systems Defined
A strategic activity system is a
network of interdependent
activities that collectively deliver
value to customers.
It's about how different activities
work together to form a
competitive advantage.
27. Strategic Fit
A key concept is the strategic fit,
where activities within a system
complement and reinforce each
other.
A well-aligned activity system is a
source of competitive
advantage.
28. Importance of Strategic Activity Systems
WHY CARE ABOUT ACTIVITY SYSTEMS? UNDERSTANDING ACTIVITY SYSTEMS HELPS
FIRMS ASSESS HOW THEY CREATE AND DELIVER
VALUE UNIQUELY.
IT AIDS IN MAKING STRATEGIC CHOICES, SUCH AS
COST LEADERSHIP OR DIFFERENTIATION, BASED
ON THE CONFIGURATION OF ACTIVITIES.
29. Implications for Strategic Leader: Using SWOT Analysis for
Insights
SWOT Analysis is a strategic planning tool used to assess a company's
internal Strengths and Weaknesses and external Opportunities and
Threats.
Let's explore how strategic leaders can leverage SWOT analysis for
valuable insights.
30. Internal Analysis:
Strengths &
Weaknesses
• Strengths: Identify and capitalize on your
organization's internal assets and advantages.
• Weaknesses: Address areas of vulnerability and
internal limitations
32. Implications
for Strategic
Leaders
Strategic Decision-Making
• Leverage Strengths: Build strategies that capitalize on your
organization's strengths.
• Mitigate Weaknesses: Develop plans to address and
improve weaknesses internally.
• Exploit Opportunities: Seize external opportunities to drive
growth and innovation.
• Mitigate Threats: Implement risk mitigation strategies to
safeguard against external threats.
33. Aligning with
Organizational
Goals
Strategic Alignment
• Ensure that SWOT insights align with your organization's
mission, vision, and long-term goals.
• SWOT should inform your strategic priorities and guide
resource allocation.
34. Periodic Review and
Adaptation
Continuous Improvement
• SWOT analysis is not a one-time
exercise; it should be regularly reviewed
and updated.
• Strategic leaders must be agile, adapting
strategies in response to changing
internal and external conditions.
35. Encouraging Cross-Functional Collaboration
Team Engagement
SWOT analysis should
involve input from various
departments and levels
within your organization.
Foster a collaborative
environment to generate
diverse insights.
38. Nike’s Historical Success
Building as Athletics
- Nike's core competency
lies in its ability to create
and leverage athlete
endorsements effectively.
- This approach began with
running and extended to
various sports.
The Risky Business
Challenges and Risks:
- While athlete endorsements
can be powerful, they come with
risks.
- Athletes may face controversies,
scandals, or changing public
perceptions, impacting the brand.
The endorsement strategy
Building Heroes:
- Nike strategically selects
athletes who align with its
brand image and values.
- The company invests in
storytelling and marketing
to elevate athletes into
"heroes."
Global Reach:
- Nike's competency
extends globally, with the
company strategically
selecting athletes from
various countries and
sports.
- This approach allows them
to connect with a diverse
customer base and tailor
marketing efforts to
different regions.
39. VRIO analysis in Nike’s case
Valuable - Yes, Nike's ability to create heroes is valuable. Associating its brand with iconic athletes
helps Nike differentiate itself in a highly competitive sportswear industry. It gives Nike a unique
selling proposition, as consumers often aspire to be like the athletes they admire.
Rare - This competency is somewhat rare, as not every sportswear company can secure high-profile
athlete endorsements to the same degree as Nike. However, other companies also use athlete
endorsements, so it's not entirely unique to Nike.
Inimitable - Nike's ability to create heroes is challenging for competitors to imitate fully. It's not just
about signing athletes; it's about cultivating long-term relationships, building a narrative around
these athletes, and integrating them into the brand's identity. Nike's history, reputation, and
financial resources contribute to this inimitability.
Organised to Capture Value - Nike is organized to capture the value created by this core competency.
The company invests heavily in marketing and advertising, with a focus on hero-driven campaigns.
It has a global reach and distribution network that allows it to capitalize on the appeal of its athlete
endorsers in various markets.
