The Tripod

Question 1

The Tripod of a Strategy

Answer 1

Industry Based View, Resource Based View, Firm Based View

Question 2

What is Industry Based View

Answer 2

The importance of industry when explaining firm performance
The industry-based view suggests that the firm must position itself against the market.

Question 3

What Framework for Industry Based View

Answer 3

Porter’s 5 forces

Question 4

What are the porter’s 5 forces

Answer 4

Threat of Entry
Threat of Rivalry
Threat of Substitutes
Threat of Powerful Suppliers
Threat of Powerful Buyers

Question 5

What is the Resource Based View

Answer 5

This focuses on the internal resources of the organization.
Resources are factors that are owned or controlled by the firm. Inputs that allow the firm to carry out its activities,

Question 6

Types of Resources

Answer 6

Tangible and Intangible

Question 7

What is tangible resources

Answer 7

Tangible: Physical assets that and organization possess.

Question 8

What is intangible resources

Answer 8

Intangible: Intellectual and technological resources.

Question 9

What are the characteristics of firm capabilities

Answer 9

• Valuable across multiple market
• Embedded within the organizational routine of the firm “This is how we do it”
• They are tacit

Question 10

Differences between capability and resources

Answer 10

The difference between resources and capabilities is that capabilities can’t be traded while resources can.

Question 11

What framework to analyze resource or capabilities

Answer 11

Valuable - Generate Value
Rare - Ideally unique
Inimitable - Can’t be copied
Organizational Support - Can be utilized by the organization

Question 12

What is the goal of sustaining competitive advantages

Answer 12

Goal is to make the advantage persist even if threats try to remove it.

Question 13

The two main strategies of sustaining competitive advantage

Answer 13

• Impediments to imitations
• Early mover advantage

Question 14

The 4 different ways of applying impediments to imitations

Answer 14

• Legal restrictions
• Superior access to inputs and customers
• Market size and scale economies (Like ikea where they can produce furniture so cheap)
• Intangible barriers to imitation

Question 15

The 4 different ways to implement early mover advantage

Answer 15

• Learning Curves
• Reputation and buyer uncertainty
• Buyer switching costs
• Network effects

Question 16

what is the Institution based view

Answer 16

Highlights the importance of formal(Laws and regulations) and informal institutions(Cultural values and norms).