BY: SHWETA DWIVEDI

A resource is an asset, competency, process, skill, or knowledge controlled by the corp.

A resource is : Strength Weakness

 VALUE:

Does it provide competitive advantage ? RARENESS: Do other competitors possess it ? IMITABILITY: Is it costly for other to imitate ? ORGANISATION: Is the firm organized to exploit the resources?

Identify S & W Combine S into specific capabilities Appraise profit potential of resources

Select the strategy

Upgrading weakness

Two characteristics determine the sustainability of a firms distinctive competency :

DUARABILITY
IMITABILITY

 DURABILITY: It is the rate at which a

firms underlying resources &capabilities depreciate or become obsolete.

IMITABILITY: It is rate at which a firms

underlying resources & capabilities can be duplicated by others.

Value chain analysis is a method for assessing the strengths & weakness of an organization on the basis of an understanding of series of activities it performs. It is a set of interlinked value-creating activities performed by an org.

TYPICAL VALUE CHAIN FOR A MANUFACTURED PRODUCT

RAW MAT

Primary manuf. fabricati on Product producer distributo r

retailer

CORPORATION VALUE CHAIN[ MICHAEL PORTER]

s u p p o r t Firm infrastructure Human resource mgmt Technology development procurement Inbo und logis tics p r o f i t services n

m
a r

g
i

opera tions

Outb ound logist ics

Mktng & sales

Primary activities