My Confession: COMPETITIVE ADVANTAGE~COMPANY RESOURCES AND CAPABILITY~VALUE CHAIN

Hye friend~~long time no see right?haha..”feeling excited la”.For this entry, i would like to write and share about another topic that i have learned a last, last, last Tuesday (longnya).

The three best indicators of how well a company’s strategy is working are :

Whether the company is achieving its stated financial and strategic objectives.
Whether it’s financial performance is above the industry average.
Whether it is gaining customers and increasing its market share.

For this entry i like to share about company internal (resources, capabilities and competitiveness) environment chapter. In this chapter. I’m like to touch on 3 main important point which are :

Company resources and capability
SWOT Analysis
The value chain system.

A resources is a competitive asset that is owned or controlled by a firm. And what is capability ? a capability or competence is the capacity of a firm to perform and internal activity competently through deployment of a firm’s resources. Resources and capability is related and the both is playing an important roles to create a competitive advantages.A good resources strenght and competitive capacity a big competitive advantage for the firm to succeed in the marketplace.

Resources is divided into 2 types which is tangible and intangible. Some example for tangible resources is financial resources and for the intangible resources is human assets and intellectual capital and so on.

Strategic management principle is resources and capability analysis is a powerful or amaing tool for sizing up a company’s competitive assets and determining if they affordable to support a sustainable competitive advantage over market rivals. The VRIN tests for sustainable competitive advantage ask if a resources is V=Valuable, R=Rare, I=Inimitable, and N=Non-substitutable.

SWOT analysis involved more than making four lists. The two most important are drawing conclusions from the SWOT listings about the company's overall situation and translating these conclusion into strategic action to better match the company's strategy to its internal strengths and market opportunities to correct weaknesses, and to defend against external threats.