CH5 - Strategic Capability

Question 1

Strategic capability and sustainable competitive advantage

- 4 qualities

Answer 1

• Value (needs to be valued by the org)
• Rarity (competitors cannot obtain same resource)
• Inimitability (competitors cannot copy)
• Organisational support

Question 2

Porter’s value chain

• description
• components of value chain

Answer 2

framework for assessing the strategic capabilities (activities) of an organisation
=> managers can focus on activities that give customers what they want and assess costs & benefits

Components:

• Margin is the excess the customer is prepared to pay over the cost to the firm
• activities can be primary or supporting

Question 3

SWOT analysis

Answer 3

Internal:
- Strengths
- Weaknesses
External:
- Opportunities
- Threats