BSM 600 Chapter Notes - Chapter 3: Functional Analysis, Path Dependence, Value Chain
17 May 2016
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2009 overtook ford as world"s fourth largest car manufacturer by sales: increase in sales of 11, big deal because everyone thought they sucked. Example of capability development over a short period of time. Used a series of phased developments to acquire key capabilities: each had clear objectives. Two main challenges: building hyundai"s production and research capabilities abroad, enhancing the company"s market knowledge and marketing skills. The role of resources and capabilities in strategy formulation. Strategy concerned with matching firm"s resources and capabilities to the opportunities that arise in the external environment. Shift from seeing sources of profit as being external to seeing sources of profits as being located within firms: two main reasons for this shift: As industry environments become unstable internal r&c rather than external market focus are more secure base for formulating strategy. Comp. advantage rather than industry attractiveness = primary source of superior profitability.
