【正文】 s employees. Capabilities represent: the firm’s capacity or ability to integrate individual firm resources to achieve a desired objective. Capabilities Ch370 What a firm Does... Capabilities represent: the firm’s capacity or ability to integrate individual firm resources to achieve a desired objective. Capabilities develop over time as a result of plex interactions that take advantage of the interrelationships between a firm’s tangible and intangible resources that are based on the development, transmission and exchange or sharing of information and knowledge as carried out by the firm39。 CEO, RJR Nabisco What a firm Has... Resources Ch366 Tangible Resources Financial * Physical * Technological * Organizational * What a firm Has... What a firm has to work with: its assets, including its people and the value of its brand name Resources represent inputs into a firm’s production process... such as capital equipment, skills of employees, brand names, finances and talented managers Intangible Resources Human Resources * Innovation * Reputation * “ Some genius invented the Oreo. We’re just living off the inheritance.” F. Ross Johnson, Former President amp。 Control Chapter 12 Strategic Leadership Chapter 13 Entrepreneurship amp。De x p e n d iture s? New co m m u n icatio nte ch n o log iesGloba lSe gment? Im p o rtan t p o li tical e v e n ts? Cr iti ca l g lob a l m a rkets? New l y ind u stri a li z e d co u n tri e s? Di ff e re n t c u ltura l a n dinstitu tio n a l at tri b u t e sCh231 R an k S tat e1 Ma ssac husetts2 California3 Col ora do4 W a shing ton5 Connec ti c ut6 U tah7 N e w H a m pshire8 N e w J e rse y9 D e law a re10 A riz onaTop 10 . States Moving Toward Digital Economy States in the top 10 of those that are trying to transform themselves to the realities and needs of a digital economy may experience an influx of hightech panies and skilled workers as well as increases in tax revenues External Environmental Analysis Ch232 Threat of New Entrants Threat of New Entrants Porter’s Five Forces Model of Competition Ch233 Threat of New Entrants Barriers to Entry Expected Retaliation Government Policy Economies of Scale Product Differentiation Capital Requirements Switching Costs Access to Distribution Channels Cost Disadvantages Independent of Scale Ch234 Bargaining Power of Suppliers Threat of New Entrants Threat of New Entrants Porter’s Five Forces Model of Competition Ch235 Bargaining Power of Suppliers Suppliers exert power in the industry by: * Threatening to raise prices or to reduce quality Powerful suppliers can squeeze industry profitability if firms are unable to recover cost increases Suppliers are likely to be powerful if: Supplier industry is dominated by a few firms Suppliers’ products have few substitutes Buyer is not an important customer to supplier Suppliers’ product is an important input to buyers’ product Suppliers’ products are differentiated Suppliers’ products have high switching costs Supplier poses credible threat of forward integration Ch236 Bargaining Power of Buyers Threat of New Entrants Threat of New Entrants Bargaining Power of Suppliers Porter’s Five Forces Model of Competition Ch237 Bargaining Power of Buyers Buyers pete with the supplying industry by: * Bargaining down prices * Forcing higher quality * Playing firms off of each other Buyer groups are likely to be powerful if: Buyers are concentrated or purchases are large relative to seller’s sales Purchase accounts for a significant fraction of supplier’s sales Products are undifferentiated Buyers face few switching costs Buyers’ industry earns low profits Buyer presents a credible threat of backward integration Product unimportant to quality Buyer has full information Ch238 Threat of Substitute Products Threat of New Entrants Threat of New Entrants Bargaining Power of Buyers Bargaining Power of Suppliers Porter’s Five Forces Model of Competition Ch239 Threat of Substitute Products Products with similar function limit the prices firms can charge Keys to evaluate substitute products: Products with improving price/performance tradeoffs relative to present industry products Example: Electronic security systems in place of security guards Fax machines in place of overnight mail delivery Ch240 Threat of Substitute Products Threat of New Entrants Threat of New Entrants Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Bargaining Power of Suppliers Porter’s Five Forces Model of Competition Ch241 Rivalry Among Existing Competitors Intense rivalry often plays out in the following ways: Jockeying for strategic position Using price petition Staging advertising battles Making new product introductions Increasing consumer warranties or service Occurs when a firm is pressured or sees an opportunity Price petition often leaves the entire industry worse off Advertising battles may increase total industry demand, but may be costly to smaller petitors Ch242 Cutthroat petition is more likely to occur when: Rivalry Among Existing Competitors Numerous or equally balanced petitors Slow growth industry High fixed costs Lack of differentiation or switching costs High storage costs Capacity added in large increments High strategic stakes High exit barriers Diverse petitors Ch243 High exit barriers are economic, strategic and emotional factors which cause panies to remain in an industry even when future profitability is questionable. Specialized assets Fixed cost of exi