3.7 Lecture 3.1

Question 1

Morgan 2012 for positional advantages to be sustained over time

Answer 1

they must be a result of value creating strategies for which the needed resources and capabilities are inimitable and non-substitutable

Question 2

What are company resources? 2

Answer 2

assets, capabilities/competences

Question 3

• Assets (tangible and intangible): 2

Answer 3

o Resource endowments the business has accumulated
o Material and immaterial possessions of a firm (e.g. buildings, trucks BUT also brands, customers, channels)

Question 4

• Capabilities/competences 2

Answer 4

o The glue that brings the assets together and enables them to be deployed advantageously
o Complex bundles of skills and accumulated knowledge, exercised through organizational processes that enable firms to coordinate activities and make use of their assets. They have no monetary value, are untradeable and non-imitable

Question 5

VRIO framewrokd
4 conditions to create SCA sustained competitive advantage

Answer 5

Value: Do you offer a resource that adds value for customers? Are you able to exploit an opportunity or neutralize competition with an internal capability?
Rarity: Do you control scarce resources or capabilities? Do you own something that’s hard to find yet in demand?
imitability: Is it expensive to duplicate your organization’s resource or capability? Is it difficult to find an equivalent substitute to compete with your offerings?
Organization: Does your company have organized management systems, processes, structures, and culture to capitalize on resources and capabilities?

Question 6

Resource analysis
Insights into 4

Answer 6

• Resources of the organisation
• Current and potential leverage of resources (exploitation)
• Consistency, interdependency and synergy of resources
• Vulnerabilities

Question 7

“Adaptive marketing capabilities” (Day 2011)
To close the growing gap between demands of the market and capacity of organisation:

Answer 7

1. Vigilant Market Learning - anticipate changes&needs,
2. Continuous experimentation,
3. Open marketing - network organisations beyond company boundaries

Question 8

5 bleu ocean strategies

Answer 8

1. Create uncontested market space
2. Make the competition irrelevant
3. Create and capture new demand
4. Break the value/cost trade off
5. Align the whole system of a companies activities in pursuit of differentiation and low cost

Question 9

Four actions framework kim & mauborgne 2005
Main idea: look at 2

Answer 9

• the (non)customer really values and set high standards there (higher value), ánd
• which aspects s/he can do without and minimise standards there (lower costs)

Question 10

Red ocean traps kim & mauborgne 6

Answer 10

1) Customer led vs market creation
* Focus on non-customers, not on customers
2) Niche strategy vs market creation
* Not about narrowing down. Attracting new customers to category
3) Technology innovation vs value innovation
4) Creative destruction vs market creation
* New demand created without eliminating the old solution
5) Differentiation vs market creation
6) Low cost vs market creation
* Both differentiation ánd low cost!
* Not always cheaper though. Comparison to substitutes used by non-users