Module 3 4 Strama
Module 3 4 Strama
Module 3 4 Strama
MODULE 3
The Internal Organization:
Resources, Capabilities, Core Competencies,
and Competitive Advantages
Opportunities
and threats
Unique resources,
capabilities, and
competencies
(required for sustainable
competitive advantage)
Strategic Management Concepts & Cases 12th Edition by Hitt, Ireland & Hoskisson
Competitive Performance
Consequences Implications
No No No No Competitive Below Average
Disadvantage Returns
Technological Development
Human Resource Mgmt.
Service
Firm Infrastructure
Support Activities
Procurement
Outbound Logistics
Operations
Inbound Logistics
Primary Activities
FOR CLASS DISCUSSION PURPOSES ONLY
Value Chain Analysis
• Primary Activities:
– are involved with:
• a product’s physical creation.
• a product’s sale and distribution to buyers.
• the product’s service after the sale.
• Support Activities:
– provide the assistance necessary for the primary
activities to take place.
FOR CLASS DISCUSSION PURPOSES ONLY
Examining the Value-Creating Potential of
Primary Activities
Inbound Logistics - activities, such as materials
handling, warehousing, and inventory control, used
to receive, store, and disseminate inputs to a
product.
Operations - activities necessary to convert the
inputs provided by inbound logistics into final
product form. Machining, packaging, assembly, and
equipment maintenance are examples of operations
activities. FOR CLASS DISCUSSION PURPOSES ONLY
Examining the Value-Creating Potential of
Primary Activities
Outbound Logistics - activities involved with collecting,
storing, and physically distributing the final product to
customers. Examples of these activities include finished-
goods warehousing, materials handling, and order
processing.
Marketing and Sales - activities completed to provide
means through which customers can purchase products
and to induce them to do so. To effectively market and
sell products, firms develop advertising and promotional
campaigns, select appropriate distribution channels, and
select, develop, and support their sales force.
FOR CLASS DISCUSSION PURPOSES ONLY
Examining the Value-Creating Potential of
Primary Activities
Service - activities designed to enhance or maintain
a product’s value. Firms engage in a range of service
related activities, including installation, repair,
training, and adjustment. Each activity should be
examined relative to competitors’ abilities.
Accordingly, firms rate each activity as superior,
equivalent, or inferior.
Business-Level Strategy
Key Issues
in What needs will
Business-level be satisfied?
Strategy
All Customers
Consumer Industrial
Markets Markets