STRATEGY 411 Lecture Notes - Lecture 6: Resource-Based View, Alaska Airlines, Southwest Airlines
Document Summary
Core competencies: unique strengths embedded deep within a firm. Allow a firm to differentiate its products and services from rivals. Competitive advantage can be driven by core competencies. Ex. honda built core competency to design and manufacture small but powerful and highly reliable engines. Visible vs invisible (lie within firm) competencies. Companies compete in p/s markets (visible) as much as they do in developing and leveraging core competencies (invisible) Core competencies are developed through interplay of resources and capabilities. Resources: any assets such as cash, buildings, machinery, or intellectual property that a firm can draw on when crafting and executing a strategy. Capabilities: organization and managerial skills necessary to orchestrate a diverse set of resources and to deploy them strategically. Activities: distinct and fine-grained business processes such as order taking, the physical delivery of products, or invoicing customers. Each activity enables firms to add incremental value by transforming inputs into goods and services.
