【正文】 or JVs to expand coverage ? Openings to exploit new technologies ? Openings to extend brand name/image ? Entry of potent new petitors ? Loss of sales to substitutes ? Slowing market growth ? Adverse shifts in exchange rates amp。 Sales Service Strategic Choice to Purchase Some Activities From Outside Suppliers Ch337 Support Activities Primary Activities Technological Development Human Resource Management Firm Infrastructure Procurement Inbound Logistics Operations Outbound Logistics Marketing amp。 Co. remends identifying three to four petencies to use in framing strategic actions. Core Competencies Ch317 Resources * Tangible * Intangible Capabilities Teams of Resources Sources of Core Competencies Competitive Advantage Discovering Core Competencies Criteria of Sustainable Advantages Valuable Rare Costly to Imitate Nonsubstitutable * * * * Discovering Core Competencies * Outsource Ch318 For a strategic capability to be a Core Competency, it must be: Core Competencies Valuable Rare Costly to Imitate Nonsubstitutable What a firm Does... that is Strategically Valuable Ch319 Valuable Rare Costly to Imitate Capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social plexity Capabilities that are not possessed by many others Capabilities that help a firm neutralize threats or exploit opportunities Core Competencies What a firm Does... that is Strategically Valuable Ch320 What Criteria Make Core Competencies Costly to Imitate? Unique Historical Conditions Causal Ambiguity Social Complexity This occurs when petitors are unable to detect how a firm uses its petencies as a foundation for petitive advantage Occurs when the firm’s capabilities are the result of plex social phenomena, such as interpersonal relationships, trust and friendships among managers or a firm’s reputation with suppliers and customers Example: Disney created Mickey Mouse at a time when animated motion pictures were new An unusual evolutionary pattern of growth may contribute to the development of petencies in a manner that is unique to those particular circumstances Ch321 Core Competencies must be: Nonsubstitutable Capabilities that do not have strategic equivalents, such as firmspecific knowledge or trustbased relationships What a firm Does... that is Strategically Valuable Core Competencies Valuable Rare Costly to Imitate Capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social plexity Capabilities that are possessed by few, if any, current or potential petitors Capabilities that either help a firm to exploit opportunities to create value for customers or to neutralize threats in the environment Ch322 Core Competencies Resources ? Inputs to a firm’s production process Core Competence ? A strategic capability The source of Capability ? Integration of a team of resources Does the capability satisfy the criteria of sustainable petitive advantage? YES NO Capability ? A nonstrategic team of resources Ch323 Valuable Rare Costly to Imitate Nonsubstitutable Competitive Consequences Performance Implications NO NO NO NO Competitive Disadvantage Below Average Returns YES NO NO YES/NO Competitive Parity Average Returns YES NO YES/NO YES Temporary Competitive Advantage Aver./Above Average Returns Above Average Returns YES YES YES YES Sustainable Competitive Advantage Outes from Combinations of the Criteria for Sustainable Competitive Advantage Ch324 Resources * Tangible * Intangible Capabilities Teams of Resources Sources of Core Competencies Competitive Advantage Discovering Core Competencies Value Chain Analysis * Outsource Valuable Rare Costly to Imitate Nonsubstitutable * * * * Criteria of Sustainable Advantages