Bu 481 Spring 2011 Class 4 - Resource Analysis The...

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Unformatted text preview: Resource Analysis The Resource-Strategy Linkage The Nature of Resources Provide your business with the potential to act Adequacy of a resource is relative to your strategic proposal Some resources may be easier to augment or adapt than others Resources may be more or less transferable to new applications S-R Linkage Strategy Resources Dual Nature of Resources Constraining Role Does the firm have the resources to implement the strategy? Driving Role of Resources New strategies may be derived from utilizing a resource advantage Strategy may be driven by attempts to build and reinforce a resource advantage Resource Analysis 1 “Instead of focusing on the accumulation of resources necessary to implement the strategy dictated by conditions and constraints in the external environment (Porter’s model), the strategy chosen should allow the company to exploit its core competencies relative to opportunities in the external environment.” Resources and Competitive Advantage Barney Model – VRIO Resources offer competitive advantage if: Valuable - Enable the firm to respond to threats and opportunities Rareness – How many have it Imitability – Can others get it without substantial investment Organization – organized to exploit the competitive potential of its resources and capabilities Imitability and Sustainability of Competitive Advantage Causal Ambiguity Conditions or nature of the competitive advantage is ambiguous Even to the firm itself Complex web of inter-related factors that make the overall system difficult to replicate Social Complexity Interpersonal relations between internal and/or external constituents Test the strategy-resource linkage Develop gap-closing analysis Recycle Recycle Identify Resource Requirements Resource Analysis 1. 2. 3. 4. Move to next step in diamond E drill Required, Available, Gaps, Risks Resource Analysis by Strategy Component Strategic Proposal Goals Product/ Market Focus Value Proposition Core Activities Required Resources Available Resources Major Gaps GapClosing Analysis Resource Analysis by Resource Category Resource Category Marketing Operations Development Financial Human Resources Reputation Other Dynamic Resources Should the firm rely on current resources and capabilities or attempt to develop new ones? Is this view applicable with an entrepreneurial startup. Why or why not? Competing on Resources Collis and Montgomery Competing on Resources Collis and Montgomery Article Inimitability: hard to copy Durability: The resource depreciates slowly Appropriability: The business captures the value created by the resource Substitutability: The business’s unique resource cannot be trumped by a different resource Competitive superiority: the business has superior resources Valuable Barney vs. Collis and Montgomery Rareness Appropriability Durability Inimitability Collis and Montgomery Imitability Substitutability Barney Organization Competitive Superiority Barney vs. Collis & Montgomery Valuable and Rare = Inimitability Valuable = “contributes to the production of something customers want at a price they are willing to pay.” Name that Resource Acquisition of smaller players is the strategy, company would need? Turnaround strategy would need? Cirque de Soleil http://www.ringling.com/explore/137/ http://www.cirquedusoleil.com/CirqueD uSoleil/en/OnScreen/DVDandVHS/soleil Minuit.htm ...
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This note was uploaded on 10/15/2011 for the course BUSINESS Bu481 taught by Professor Trucker during the Spring '11 term at Wilfred Laurier University .

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