Look|ng |ns|de for compet|t|ve advantage: Iay 8.

8arney
llrms Lo use lnLernal sLrengLhs besL
avold lnLernal weaknesses Lo leverage envlronmenLal opps besL and galn compeLlLlve advanLage
SWC1 lramework LxLernal and lnLernal
Pere: framework Lo analyze compeLlLlve lmpllcaLlons of a flrm's lnLernal sLrengLhs and weaknesses
Lxample: SouLhwesL, WalmarL -clearly bullL on lnLernal sLrengLhs
desplLe unaLLracLlve hlgh LhreaL low opporLunlLy envlronmenLs wlLhln whlch Lhey operaLe
lnLernal aLLrlbuLes 8esources & CapablllLles llnanclal Assets debL/ equlLy
hyslcal machlnes
Puman experlence, knowledge
CrganlzaLlonal PlsLory, culLure
4 quest|ons about resources and acpab|||t|es 1 value
2 8areness
3 lmlLablllLy
4 CrganlzaLlon
Va|ue uo fltms' k&c oJJ voloe by eooblloq lt to explolt Oll5 ooJ oeottollze tbteots?
?es SLorles Sony Plgh experlence deslgnlng/ manuf/ selllng mlnlaLurlzed elecLronlcs Lechnology
3M used experlence ln subsLraLes, coaLlngs adheslves
no uSx (sLeel) long experlence -delayed lnvesLmenL ln Lhln slab casLlng sLeel -- falled Lo recognlze opps
Sears sLuck Lo LradlLlonal way of dolng Lhlngs -beaLen up by WalmarL
CapablllLles may become obsoleLe and may noL add value golng fwd, Lhough Lhey may have ln Lhe pasL
Amerlcan Alrllnes relaLlonshlp wlLh CAS8- no value add afLer deregulaLln
llnd new ways Lo apply LradlLlonal sLrengLhs
kareness WalmarL,s skllls ln developlng and uslng polnL-of-purchase daLa collecLlon lnvenLory conLrol
Im|tab|||ty h|gh resources, capab|||t|es , comp|ex resources, re|nforc|ng mode|s
lmporLance of hlsLory CaLerplllar's advanLage because of CovernmenL supporL afLer World War ll when lL was sole suppller Lo govL
uo loLs of llLLle Lhlngs rlghL LoLal general phllosophlcal bhaaL abL how noL [usL 8lC decns, buL small decns also maLLer
Soclally complex resources culLure, Leam work, cooperaLlon -P- even across dlvlslonal boundarles
Crgan|zat|on 1o fully reallze poLenLlal reallzable Lhro' rareness, value of 8&C eL al
8eporLlng sLrucLure, managemenL conLrol sysLems, compensaLlon pollcles
comp/ementory resources cause cannoL generaLe revenus ln lsolaLlon
--- Lxample: WalmarL: hlsLorlcally goL ln because of seLLlng up ln rural areas
---malnLalned by conLrols (lnvenLory), frugallLy eL al
xerox: organlzaLlonal problems, hence falled Lo uLlllze full poLnl
Mac: lnlLlally valued for user-frlendllness. 8are commodlLy
AfLer wlndows enLered: Lhls wasn'L rare -so only a Lemporary comp adv Lo Apple
Lhe resL ls baslcally a summary of Lhe Apple case