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How do core competencies create value?
They create higher value for customers or offer comparable value at a lower cost.
Resources with no physical attributes, such as brand reputation or company culture.
What are intangible resources?
Situations where different social and business systems interact, making competitive advantages harder to replicate.
What is social complexity?
Unique strengths embedded deep within a firm that allow it to differentiate its products and services.
What are core competencies?
Physical attributes that are visible, such as buildings and machinery.
What are tangible resources?
A firm's ability to create, deploy, modify, and leverage its resources over time for competitive advantage.
What is the Dynamic Capabilities Perspective?
It indicates that resource bundles differ across firms, making them unique and difficult to replicate.
What is the significance of resource heterogeneity?
Resources that cannot be developed or purchased by competitors at a reasonable price.
What is 'costly to imitate' refer to in the VIRO framework?
To create a strategic fit with the firm's changing external environment.
What is the goal of developing dynamic capabilities?
What does the VIRO framework stand for?
Valuable, Rare, Costly to Imitate, Organized to Capture Value
When the cause and effect of a phenomenon are not readily apparent, complicating strategy formulation.
What is casual ambiguity?
Value and Cost.
What are the two primary competitive levers available to managers?
What makes a resource valuable according to the VIRO framework?
It helps a firm increase the perceived value of its product or service in the eyes of consumers.
Nike, which differentiates its products from rivals.
What is an example of a company that has built its core competencies over decades?
It details the goal-directed actions managers take to achieve
What is Business Level Strategy?