Resources and Capabilities Flashcards
Market Driven
- Strategy: differentiated (what image to build)
- Existing, well defined market segments
-Based on market sensing
-Pricing: perceived value
-Incremental Innovation
Examples: P and G
Market Driving
- Strategy: Revolutionary (change rules of game)
- Destroy existing market segments
- Forward sensing
- Pricing: new
- Radical innovation
Examples: Amazon, Ikea- first mover advantage (post it) and price premium, you need to educate your customers
IKEA
Discontinuous leap in value and business model
-immediate delivery
- low prices
-self-service and assembly
Overwhelms customer expectation and existing alternatives
Resources and Capabilities
Resources: are assets that have been accumulated over time
Capabilities: combine them in a meaningful way so that value is generated for stakeholders
Dynamic Capabilities
The ability to integrate build and reconfigure internal and external competencies to address rapidly changing environments
Market Orientation
The business culture that facilitates the most value creation based on customer and competitor focus and inter-functional coordination
But
In some cases, it might not be sensible to follow what your customers want
Resource advantage theory
Resources are what gives rise to SCA (resources– market position– financial outcomes) but this is static- dynamic capabilities extension because you need to respond to the environment your firm operates in
Ambidexterity
A firms ability to exploit exisiting capabilities so that it can explore different spaces. The way to do this is to have 2 different structures one for exploiting and one for exploiring (culture, people etc)
Exploitation:
- Follow the rules and drive out slack
- focus on serving exisiting custoemr segements
- Manage and refine exisiting competencies
- Optimize orgs for exisitng rules
- Make money now
Value diciplines
Product leadership
Customer Intimacy
Operational excellence
Comparative parity and excell in one
