Given that almost anything a firm possesses can be considered a resource or capability, how should you attempt to narrow down the ones that are core competencies, and explain why firm performance differs? To lead to a sustainable competitive advantage, a resource or capability should be valuable, rare, inimitable (including nonsubstitutable), and organized. This VRIO framework is a foundational tool for internal analysis. It is developed to remind managers of the questions to ask when evaluating Read More
SWOT Analysis
At the most basic level of strategic analysis, you will need to gather information and conduct analysis about the internal characteristics of the organization and the external market conditions. This means an internal appraisal and an external appraisal. On the internal side, you will want to gain a sense of the organization’s strengths and weaknesses; on the external side, you will want to develop some sense of the organization’s opportunities and threats. Together, these four inputs into Read More
SWOT Analysis
The SWOT analysis is an instrument used by businesses and organizations to organize internal and external factors that affect a product or business into separate categories. Due to its simplicity, the SWOT is a popular method for companies to identify their competitive advantages and disadvantages. The outcome of a SWOT analysis can be used to make strategic decisions that are consistent with a company’s capabilities. On the internal side, you will want to gain a sense of the organization’s Read More