1、CHAPTER 3 .What have we learned last time?.Political/LegalEconomicTechnologicalGlobalDemographicSocioculturalIndustry EnvironmentComponents of the General Environment.Threat of Substitute ProductsThreat of New EntrantsThreat of New EntrantsRivalry Among Competing Firms in IndustryBargaining Power of
2、 BuyersBargaining Power of SuppliersPorters Five Forces Model of Competition.Effects of Entry Barriers and Exit Barriers on Industry ProfitsEntry BarriersExit BarriersHighLowHighLow.Low,Stable ReturnsEntry BarriersExit BarriersHighLowHighLowEffects of Entry Barriers and Exit Barriers on Industry Pro
3、fits.High,Stable ReturnsEntry BarriersExit BarriersHighLowHighLowLow,Stable ReturnsEffects of Entry Barriers and Exit Barriers on Industry Profits.Low,Risky ReturnsEntry BarriersExit BarriersHighLowHighLowLow,Stable ReturnsHigh,Stable ReturnsEffects of Entry Barriers and Exit Barriers on Industry Pr
4、ofits.High,Risky ReturnsEntry BarriersExit BarriersHighLowHighLowLow,Stable ReturnsHigh,Stable ReturnsLow,Risky ReturnsEffects of Entry Barriers and Exit Barriers on Industry Profits.Concept to Note.SWOT Analysis-What to Look ForPotential Resource Strengths Potential Resource WeaknessesPotential Com
5、pany OpportunitiesPotential External Threats Powerful strategy Strong financial condition Strong brand name image/reputation Widely recognized market leader Proprietary technology Cost advantages Strong advertising Product innovation skills Good customer service Better product qualityAlliances or JV
6、s No clear strategic direction Obsolete facilities Weak balance sheet;excess debt Higher overall costs than rivals Missing some key skills/competencies Internal operating problems.Falling behind in R&D Too narrow product line Weak marketing skills Serving additional customer groups Expanding to new
7、geographic areas Expanding product line Transferring skills to new products Vertical integration Acquisition of rivals Alliances or JVs to expand coverage Openings to exploit new technologies Openings to extend brand name/image Entry of potent new competitors Loss of sales to substitutes Slowing mar
8、ket growth Adverse shifts in exchange rates&trade policies Costly new regulations Vulnerability to business cycle Growing leverage of customers or suppliers Shift in buyer needs for product Demographic changes.Identifying Resource Strengthsand Competitive CapabilitiesA strength is something a firm d
9、oes well or a characteristic that enhances its competitivenessValuable competencies or know-howValuable physical assetsValuable human assetsValuable organizational assetsValuable intangible assetsImportant competitive capabilitiesAn attribute that places a company in a position of market advantageAl
10、liances or cooperative ventures.Identifying Resource Weaknessesand Competitive DeficienciesA weakness is something a firm lacks,does poorly,or a condition placing it at a disadvantageResource weaknesses relate toDeficiencies in know-how or expertise or competenciesLack of important physical,organiza
11、tional,or intangible assetsMissing capabilities in key areas.Identifying a CompanysMarket OpportunitiesThe market opportunities most relevant to a company are those offeringThe best prospects for profitable long-term growthCompetitive advantageGood match with its financial and organizational resourc
12、e capabilities.Identifying External ThreatsEmergence of cheaper/better technologiesIntroduction of better products by rivalsIntensifying competitive pressuresOnerous(烦琐/负法律责任的)regulationsA rise in interest ratesPotential of a hostile takeoverUnfavorable demographic shiftsAdverse shifts in foreign ex
13、change ratesPolitical upheaval(动荡，剧变)in a country.Chapter 2External EnvironmentWhat the Firm Might DoChapter 3Internal EnvironmentWhat the Firm Can Do.Resources*Tangible*IntangibleCapabilitiesTeams of ResourcesSources ofCoreCompetenciesCompetitiveAdvantageStrategicCompetitivenessAbove-AverageReturns
14、DiscoveringCoreCompetenciesValueChainAnalysis*OutsourceValuableRareCostly to ImitateNonsubstitutable*Criteria ofSustainableAdvantagesDiscovering Core CompetenciesCompetitiveAdvantageGained throughCore Competencies.Key Questions for Managersin Internal Analysis.Conditions Affecting Managerial Decisio
15、ns About Resources,Capabilities and Core CompetenciesUncertaintyregarding characteristics of the general and the industry environments,competitors actions,and customers preferences.Complexityregarding the interrelated causes shaping a firms environments and perceptions of the environmentsIntraorgani
16、zational Conflictsamong people making managerial decisions and those affected by them.Resources*Tangible*IntangibleDiscovering Core Competencies.Resources.Resources.Resources.Tangible ResourcesFinancial*Physical*Human Resources*Organizational*What a firm Has.What a firm has to work with:its assets,i
17、ncluding its people and the value of its brand nameResources represent inputs into a firms production process.such as capital equipment,skills of employees,brand names,finances and talented managersIntangible ResourcesTechnological*Innovation*Reputation*Resources.Resources*Tangible*IntangibleCapabil
18、itiesTeams of ResourcesDiscovering Core Competencies.What a firm Does.Capabilities.What a firm Does.Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firms tangible and intangible resources that are based on the development,tra
19、nsmission and exchange or sharing of information and knowledge as carried out by the firms employees.Capabilities represent:the firms capacity or ability to integrate individual firm resources to achieve a desired objective.Capabilities.What a firm Does.Capabilities represent:the firms capacity or a
20、bility to integrate individual firm resources to achieve a desired objective.Capabilities develop over time as a result of complex interactions that take advantage of the interrelationships between a firms tangible and intangible resources that are based on the development,transmission and exchange
21、or sharing of information and knowledge as carried out by the firms employees.Capabilities.Resources*Tangible*IntangibleCapabilitiesTeams of ResourcesDiscovering Core CompetenciesSources ofCoreCompetenciesCompetitiveAdvantageDiscoveringCoreCompetencies.What a firm Does.that is Strategically Valuable
22、Core Competencies.Resources*Tangible*IntangibleCapabilitiesTeams of ResourcesSources ofCoreCompetenciesCompetitiveAdvantageDiscoveringCoreCompetenciesCriteria ofSustainableAdvantagesValuableRareCostly to ImitateNonsubstitutable*Discovering Core Competencies*Outsource.Core CompetenciesValuableRareCos
23、tly to ImitateNonsubstitutableWhat a firm Does.that is Strategically Valuable.ValuableRareCostly to ImitateCapabilities that other firms cannot develop easily,usually due to unique historical conditions,causal ambiguity or social complexityCapabilities that are not possessed by many othersCapabiliti
24、es that help a firm neutralize(抵制)threats or exploit opportunitiesCore CompetenciesWhat a firm Does.that is Strategically Valuable.What Criteria Make CoreCompetencies Costly to Imitate?Unique Historical ConditionsCausal AmbiguitySocial ComplexityThis occurs when competitors are unable to detect how
25、a firm uses its competencies as a foundation for competitive advantageOccurs when the firms capabilities are the result of complex social phenomena,such as interpersonal relationships,trust and friendships among managers or a firms reputation with suppliers and customersAn unusual evolutionary patte
26、rn of growth may contribute to the development of competencies in a manner that is unique to those particular circumstances.Core Competencies must be:NonsubstitutableCapabilities that do not have strategic equivalents,such as firm-specific knowledge or trust-based relationshipsWhat a firm Does.that
27、is Strategically ValuableCore CompetenciesValuableRareCostly to ImitateCapabilities that other firms cannot develop easily,usually due to unique historical conditions,causal ambiguity or social complexityCapabilities that are possessed by few,if any,current or potential competitorsCapabilities that
28、either help a firm to exploit opportunities to create value for customers or to neutralize threats in the environment.Core Competencies.Resources*Tangible*IntangibleCapabilitiesTeams of ResourcesSources ofCoreCompetenciesCompetitiveAdvantageDiscoveringCoreCompetenciesValueChainAnalysis*OutsourceValu
29、ableRareCostly to ImitateNonsubstitutable*Criteria ofSustainableAdvantagesDiscovering Core Competencies.The Value Chain ConceptIdentifies the separate activities and business processes performed to design,produce,market,deliver,and support a product/serviceConsists of two types of activitiesPrimary
30、activities Support activities.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Cha
31、in AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.Suppo
32、rtActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources an
33、d Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.SupportActivitiesPrimary ActivitiesValue
34、 Chain AnalysisIdentifying Resources and Capabilities That Can Add Value.Example:Key Value Chain ActivitiesTimber farmingLoggingPulp millsPapermakingPrinting&publishingPULP&PAPER INDUSTRY.Example:Key Value Chain ActivitiesParts&components manufactureAssemblyWholesale distributionRetail salesHOME APP
35、LIANCE INDUSTRY.Example:Key Value Chain ActivitiesProcessing of basic ingredientsSyrup(果汁果汁)manufactureBottling and can fillingWholesale distributionRetailingSOFT DRINK INDUSTRYKroger.Example:Key Value Chain ActivitiesProgrammingDisk loadingMarketingDistributionCOMPUTER SOFTWARE INDUSTRY.SupportActi
36、vitiesPrimary ActivitiesStrategic Choice to Purchase Some Activities From Outside Suppliers.SupportActivitiesPrimary ActivitiesFirms often purchase a of their value-creating activities from specialty external suppliers who can perform these functionsStrategic Choice to Purchase Some Activities From
37、Outside Suppliers.Lets company focus on broader business issues by having outside experts handle various operational detailsImprove Business FocusPermits firm to redirect efforts from non-core activities toward those that serve customers more effectivelyFree Resources for Other PurposesProvide Acces
38、s to World-Class CapabilitiesAccelerate Business Re-Engineering BenefitsShare RisksThe specialized resources of outsourcing providers makes world-class capabilities available to firms in a wide range of applications Achieves re-engineering benefits more quickly by having outsiders-who have already a
39、chieved world-class standards-take over processReduces investment requirements and makes firm more flexible,dynamic and better able to adapt to changing opportunities .The Value Chain SystemUpstreamValue ChainsA Companys OwnValue ChainDownstreamValue ChainsActivities,Costs,&Margins ofForwardChannelA
40、llies&StrategicPartnersInternallyPerformedActivities,Costs,&MarginsActivities,Costs,&Margins ofSuppliersBuyer/UserValueChains.Value Chains are part of a Total Value System.Perform valuable activities that the firms activitiesValue Chains are part of a Total Value System.Upstream ValuePerform valuabl
41、e activities that complement the firms activitiesValue Chains are part of a Total Value System.Upstream ValuePerform valuable activities that complement the firms activitiesEach firm must eventually find a way to become a part of some buyers value chainValue Chains are part of a Total Value System.S
42、upplier Value ChainFirm Value ChainChannel Value ChainUpstream ValuePerform valuable activities that complement the firms activitiesBuyer Value ChainEach firm must eventually find a way to become a part of some buyers value chainUltimate basis for differentiation is the ability to play a role in a b
43、uyers value chainThis creates VALUE!Value chains vary for firms in an industry,reflecting each firms unique qualities:History Strategy Success at ImplementationValue Chains are part of a Total Value System.Core Competencies-Cautions and RemindersNever take for granted that core competencies will con
44、tinue to provide a source of competitive advantageAll core competencies have the potential to become Core RigiditiesCore Rigidities are former core competencies that sow the seeds of organizational inertia(惯性)and prevent the firm from responding appropriately to changes in the external environmentSt
45、rategic myopia(近视）and inflexibility can strangle(扼死）the firms ability to grow and adapt to environmental change or competitive threats.Resources*Tangible*IntangibleCapabilitiesTeams of ResourcesSources ofCoreCompetenciesCompetitiveAdvantageStrategicCompetitivenessAbove-AverageReturnsDiscoveringCoreC
46、ompetenciesValueChainAnalysis*OutsourceValuableRareCostly to ImitateNonsubstitutable*Criteria ofSustainableAdvantagesDiscovering Core Competencies.Chapter 2ExternalEnvironmentChapter 3InternalEnvironmentStrategic Mission.Chapter 2ExternalEnvironmentChapter 3InternalEnvironment.Resources*Tangible*Int
47、angibleCapabilitiesTeams of ResourcesSources ofCoreCompetenciesCompetitiveAdvantageStrategicCompetitivenessAbove-AverageReturnsDiscoveringCoreCompetenciesValueChainAnalysis*OutsourceValuableRareCostly to ImitateNonsubstitutable*Criteria ofSustainableAdvantagesDiscovering Core CompetenciesCompetitive
48、AdvantageGained throughCore Competencies.From Value Chain Analysisto Competitive AdvantageA company can create competitive advantage by managing its value chain so as toIntegrate the knowledge and skills of employees in competitively valuable waysLeverage economies of learning/experienceCoordinate r
49、elated activities in ways that build valuable capabilitiesBuild dominating expertise in avalue chain activity critical to customer satisfaction ormarket success.From Value Chain Analysisto Competitive AdvantageThe strategy-making lesson of value chain analysis:Sustainable competitive advantage can be created by(1)managing value chain activities better than rivals and(2)developing distinctive capabilities to serve customers!.
