the organizational capabilities possessed by thefirm that could be used through appropriate organizational structure,business processes, control system and reward systems that arepresent in the firm. E.g.: - the availability of competent R&D personneland research laboratories to innovate products continuously Using Resources to Gain Completive advantageThe five steps are: -1.Identify and classify the firm’s resources in terms of strengths and weaknesses2.Combine the firm’s strengths into specific capabilities and core competencies3.Appraise the profit potential of these capabilities and competencies in terms of their sustainablecompetitive advantages4.Select strategy that best exploits the firm’s capabilities and competencies relative to externalopportunities5.Identify resource gaps and invest in upgrading weaknesses.1.Transparency: - is the speed with which other firm can understand the relationship ofresources and capabilities supporting a successful firm’s strategy. 2.Transferability: - is the ability of competitors to gather resources and capabilities necessaryto support a competitive challenge. 3.Replicability: - is the ability of competitors to use duplicated resources and capabilities toimitate the other firm’s resources.2. Business ModelsA business model is a company’s method for making money in thecurrent business environment. It includes the key structural andoperational characteristics of a firm- how it earns revenue and makes aprofit. A business model is usually composed of five elementsWho it servesWhat it providesHow it makes moneyHow it differentiates and sustain completive advantage
How it provides its product /service.3. Value Chain AnalysisThis is a method for assessing the strength and weaknesses of anorganization based on an understanding of the series of activities itperforms. A value chain is a set of interlinked value-creating activitiesperforming by an organization. These, activities may begin with theprocurement of basic raw materials and go through processing invarious stages right up to the end product marketed to the ultimateconsumer.Porter divided the value chain of a manufacturing organization intoprimary and support activities. They are: -Inbound logistics: - all activities that an organization uses for receiving, storing and transportinginputs going into the production process.