Class Slides - Internal Analysis - Distinctive Competencies, Profitability and Competitive Advantage

Page 1: Introduction to Global Strategy and Sustainability

• Focus on internal analysis, emphasizing distinctive competencies, profitability, and competitive advantage.

Page 2: Today's Agenda

• Quick recap of last week’s external analysis.

• Discussion on sources of competitive advantage.

• Activity 1: Group case study on Coca-Cola's resources and capabilities.

• Introduction to the value chain concept.

• Discussion on building and maintaining competitive advantage.

• Activity 2: Individual study on Zara’s fast fashion dominance.

• Examination of global supply chain management, competitive advantage, and technology.

• Activity 3: Group case study on electric vehicles supply chain.

• Review of apply activity, recap, Q&A session, discussions, and next steps.

Page 3: Previous Week Recap - External Analysis

• Evaluated the competitive environment using the five forces model.

• Explored strategic groups for industry analysis.

• Discussion on industry evolution related to the industry lifecycle.

• Identified how macro-environment trends shape competition.

Page 4: Learning Outcomes

• Assess sources of competitive advantage for global firms.

• Analyze how competitive advantage is built and maintained.

• Evaluate the concept of the value chain and apply it to global enterprises.

• Evaluate global supply chain management approaches and technology’s role.

Page 5: Sources of Competitive Advantage

• Understanding the basis of a firm's competitive edge in the marketplace.

Page 6: Objectives of Internal Analysis

• Identify strengths and weaknesses using the SWOT framework.

Page 7: Competitive Advantage and Business Model

• The source of sustained competitive advantage is linked to the business model developed in relation to the environment.

Page 8: Resource-Based View (RBV)

• Unique resources and capabilities significantly influence strategy and opportunity exploitation.

• Key assets include:

  • Raw materials

  • Manufacturing plants

  • Skilled personnel

  • Financial assets

  • Technology

  • Brand equity

Page 9: RBV - "Stretching" Strategy

• Businesses can leverage competencies to explore opportunities beyond core capabilities.

Page 10: Relationship Between Resources and Capabilities

• Resources: what a firm has.

• Capabilities: what a firm can do.

• Assessing core resource contribution to sustainable competitive advantage.

Page 11: VRIO Model Overview

• VRIO framework evaluates resources and capabilities on four criteria essential for competitive advantages.

Page 12: VRIO Model - Starbucks Case Study

• Detailed framework outlining Starbucks' core competencies using the VRIO analysis:

  • Resources include internet access, R&D skills, coffee brewing equipment, and brand.

  • Capabilities enhance customer experience and innovation.

Page 13: Group Activity - Coca Cola Case Study

• Analyze Coca Cola’s resources and capabilities within a group setting.

Page 14: Introducing the Value Chain Concept

• Overview of value chain importance in strategy development.

Page 15: Value Creation Process

• Understanding how firms create value and the cost-minimization methods.

• Use Porter's Value Chain to model organizational activities generating customer value.

Page 16: Porter's Value Chain Breakdown

• Supporting activities improve the effectiveness of primary activities.

• Primary activities directly relate to product/service delivery.

Page 17: Benefits of Value Chain Analysis (VCA)

• Low-cost advantages through process cost drivers.

• Focus on customer perceived value and innovative differentiation strategies.

Page 18: Amazon's Value Chain Overview

• Breakdown of primary and support activities in Amazon’s value chain:

  • Inbound logistics, operations, outbound logistics, marketing & sales, HR & Finance, service.

  • Advanced technologies enable optimized operations.

Page 19: Break Time

• Scheduled 15-minute break.

Page 20: Building and Maintaining Competitive Advantage

• Framework for developing sustained competitive advantage.

Page 21: Resource and Capability Gap Analysis

• Systematic approach to evaluate strengths and weaknesses:

  • Identify key resources and capabilities.

  • Assess relative importance and strategic importance.

Page 22: Volkswagen (VW) Case Study on Resources and Capabilities

• Identification of resources (finance, technology, brands) and capabilities (marketing, engineering).

Page 23: Linking value chain to Competitive Advantage

• Position firms as cost leaders or differentiators.

• Focus on enhancing key resources and capabilities.

Page 24: Strengthening Competitive Advantage through Value Chain

• Identify and assess value-added primary activities and opportunities for improvement against competitors.

Page 25: Protecting and Sustaining Competitive Advantage

• Barriers necessary to maintain competitive advantages:

  • Information secrecy, pricing strategies, multi-brand use, complex business models.

Page 26: Longevity of Competitive Advantage

• Historical perspective of companies losing competitive advantages.

• Current questioning of Netflix’s sustainability.

Page 27: Impermanence of Competitive Advantage

• Continuous adaptation and creation of new competitive advantages are crucial.

Page 28: Individual Case Study - Zara’s Fast Fashion Strategy

• Analysis of Zara’s industry dominance through its business model.

Page 29: Overview of Global Supply Chain Management

• Definition and importance of supply chain processes.

Page 30: Supply Chain Value System

• Overview of value chains throughout suppliers, organizations, distributors, and buyers.

• Efficient supply chain management leads to cost savings and profit synergies.

Page 31: Competing through Value Chain

• Factors: reliability, responsiveness, agility, cost strategy.

• Focus on right product delivery and post-sale support.

Page 32: Supply Chain Technologies

• Key technologies delivering competitive advantage include:

  • IoT, Blockchain, AI, automation, 3D printing.

Page 33: Risks Associated with Value Chain

• External risks affecting worldwide supply chains highlighted.

Page 34: Group Activity - Electric Vehicles Supply Chain

• Group case study examination of electric vehicle supply chain dynamics.

Page 35: Conclusion - Internal and External Analysis

• Integration of value chain, resource-based view, VRIO, and gap analysis in company strategy evaluation.

Page 36: Review of Apply Activity

• Discussion and reflection on applied activities for understanding.

Page 37: Activity Instructions for Discussion Forum

• Engage with questions reflecting on competitive advantage and technology.

Page 38: Recap, Q&A, Discussion

• Open platform for discussion and queries.

Page 39: Key Takeaways

• Ability to assess sources of competitive advantage, analyze value chains, and explore global supply chain management.

Page 40: Next Steps

• Guidance on reviewing topics, preparing assessments, and next week’s agenda.