Two perspectives - -The internal analysis of phenomena within a company
An external analysis of the industry and its competitive environment
-Three key types of resources - -Tangible resources
Intangible resources
Organizational capabilities
-Tangible resources - -Relatively easy to identi...
-Tangible resources - -Relatively easy to identify, and include physical
and financial assets used to create value for customers
Financial resources
Physical resources
-Intangible resources - -Difficult for competitors (and the firm itself) to
account for or imitate, typically embedded in unique routines and
practices that have evolved over time
Human
Experience and capabilities of employees
Trust
Managerial skills
Firm-specific practices and procedures
Innovation and creativity
Reputation
-Organizational capabilities - -Competencies or skills that a firm
employs to transform inputs to outputs, and capacity to combine tangible
and intangible resources to attain desired end
-Sustainable Competitive Advantage guidelines - -Valuable
Rare
Difficult to imitate
Difficult to substitute
,Implications:
Neutralize threats and exploit opportunities
Not many firms possess
Physically unique
Path dependency
Causal ambiguity
Social complexity
No equivalent strategic resources or capabilities
-Is the Resource Valuable? - -Organizational resources can be a source
of competitive advantage only when they are valuable
-Is the Resource Rare? - -Organizational resources also possessed by
competitors are not sources of competitive advantage
-Can the Resource be Imitated Easily? - -Difficulty in imitating
resources is key to value creation because it constrains competition
-Are Substitutes Readily Available? - -There must be no strategically
equivalent valuable resources that are themselves not rare or inimitable
-Marketing Strategy - -Strategy is a glue that binds objectives to tactics
(action or activation)
-Objectives - -Objectives or Goals are what we are trying to ultimately
accomplish
Marketing Objective Examples:
Increase sales by 8% ($200,000,000) vs. YAG (year ago)
Increase consumers perception of the brand as "a grate value" by 2pts vs
2006 annual consumer survey
Make $20,000 this year!
, -Strategy - -From the Greek term "strategos" meaning the "art of the
general"
1) The skill of using military, naval and air forces to win a war
2) A clever plan
"The art of controlling and utilizing resources of a nation or coalition of
nations including its arm forces to the end that its vital interest shall
effectively be promoted and secured
The overarching rules that will make sure whatever we do will lead to
fulfilling at least one objective
The strategy is what will govern our marketing plan
Tells us what tactics are appropriate to use, what is "on" or "off" strategy
Strategy keeps us on track, without it, firms flail about, dashing after one
opportunity after another with no aim or focus
-Business/Marketing Strategy - -Michael Porter "a broad formula for
how a business is going to compete"
Ways of being different
Leveraging competitive advantages
Most successful firms strategies are built on....
-Elements of Strategy from the Art of War - -The general who wins the
battle makes many calculations in his temple before the battle is fought.
The general who loses makes but few calculations beforehand.
Sun Tzu, 600 BC
-The SWOT Analysis and Lessons From the Art of War - -Know your
enemies and know yourself, you will not be imperiled in a hundred
battles;
-The Strongest Strengths???? - -Core Competencies and
Sustainable Competitive Advantages
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