Module 4: internal analysis

Competitive Advantage

A condition that allows a company to outperform its competitors through unique attributes or abilities.

Internal Analysis

The process of examining a firm's internal environment to identify strengths, weaknesses, resources, capabilities, and activities.

External Analysis

The examination of the external business environment to identify opportunities and threats.

Core Competencies

Unique strengths and abilities that are central to a firm's success and difficult for competitors to imitate.

Resources

Assets owned or controlled by a firm that contribute to value creation, including both tangible and intangible types.

Tangible Resources

Physical and financial assets such as machinery, buildings, cash, and infrastructure.

Intangible Resources

Non-physical assets like brand reputation, intellectual property, and organizational culture that are hard to replicate.

Capabilities

The firm's ability to deploy resources effectively through skills, processes, and organizational knowledge.

Activities

Specific tasks and operations a firm performs to design, produce, market, deliver, and support its products or services.

Strengths

Internal factors that give a company an advantage over competitors and are within the company's control.

Weaknesses

Internal factors that put a company at a disadvantage compared to competitors and are within the company's control.

Value Chain Analysis

A method for assessing activities and processes that create value and identifying areas for efficiency and improvement.

VRIO Framework

A tool for evaluating resources and capabilities based on Value, Rarity, Imitability, and Organization to determine competitive advantage.

Value (VRIO)

The extent to which a resource or capability enables a firm to exploit opportunities or neutralize threats.

Rarity (VRIO)

How unique or scarce a resource or capability is among current and potential competitors.

Imitability (VRIO)

The difficulty competitors face in replicating a firm's resource or capability.

Organization (VRIO)

The firm's ability to organize and leverage resources and capabilities to capture value.

Human Resources

Employee skills, knowledge, experience, and talent management within an organization.

Intellectual Resources

Assets such as patents, trademarks, copyrights, and research and development capabilities.

Operational Efficiency

The ability to perform activities in a way that maximizes output while minimizing input and waste.

Brand Reputation

The perception of a company held by the public, often rooted in history and difficult for competitors to duplicate.

Innovation

The process of developing new products, services, or processes that create value and differentiate a firm.

Strategic Insight

Understanding where a firm's strengths lie and how to leverage them for superior performance and customer satisfaction.