Question #3:   WHY IS IT NECESSARY TO PERFORM AN EXTERNAL AND INTERNAL ANALYSIS BEFORE THE FIRM CAN IDENTIFY ITS TRUE CORE COMPETENCIES? Group #2: M981Y207: Tran Hoang Nhu Chau陳黃如珠 M981Y205: Le Quang Tien 黎光進 M9810115: 黃繼億

Internal Analysis The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. Weaknesses refer to any limitations a company faces in developing or implementing a strategy. Being market focused when analyzing strengths and weaknesses does not mean that non-market oriented strengths and weaknesses should be forgotten.

Internal core competencies Resources: Profitability, sales, product quality brand associations, existing overall brand, relative cost of this new product, employee capability, product portfolio analysis. Capabilities: Goal: To identify internal strategic strengths, weaknesses, problems, constraints and uncertainties.

External analysis The External Analysis examines opportunities and threats that exist in the environment. The way to differentiate between a strength or weakness from an opportunity or threat is to ask: Would this issue exist if the company did not exist? If the answer is yes, it should be considered external to the firm. Opportunities refer to favorable conditions in the environment that could produce rewards for the organization if acted upon properly. Threats refer to conditions or barriers that may prevent the firms from reaching its objectives.

External core competencies Customer analysis: Segments, motivations, unmet needs. Competitive analysis: Identify completely, put in strategic groups, evaluate performance, image, their objectives, strategies, culture, cost structure, strengths, weakness. Market analysis: Overall size, projected growth, profitability, entry barriers, cost structure, distribution system, trends, key success factors. Environmental analysis: Technological, governmental, economic, cultural, demographic, scenarios, information-need areas Goal: To identify external opportunities, threats, trends, and strategic uncertainties.

Internal Analysis of Apple Computer Inc Strengths iTunes Music Store Developing own software and hardware Have good brand loyalty Strong R&D Department. Weaknesses Weak relationship with Intel and Microsoft The product life cycle of Apple products are very small Apples market share is far behind from major competitor Microsoft

External Analysis of Apple Computer Inc Opportunities Increase in worms and viruses on PCs The ties of apple other companies are weak, Apple can develop good relationship for joint ventures Downloadable music and MP3 players are highly marketable The online sales of computer are increasing with rapid speed Threats Companies not seeing Apple as compatible with their software Strong competition from Dell, HP, Sony and Toshiba in laptop segment Downloading free music from some other online Product’ cost more expensive as compared with the others Windows 7 which is gaining market share The switching in technology is very fast

Core Competencies of Apple Computer Inc Think different Core competency have to be innovative design and technology. Today, the iPhone challenges the definition of a phone, and the iPad challenges the definition of a netbook or even a laptop. Buy different Visit an Apple store, and you'd almost think that it was designed more to create a clubhouse for Apple enthusiasts than to actually sell the company's products.

HTC’s internal and external environment analysis Five Forces Analysis: The threat of Entry The power of Buyers The power of Suppliers The threat of Substitutes Competitive Rivalry

Analysis The threat of Entry: 3C operators and handset manufacturers, because there are upgrade Smart Phone applications in word processing and space deficiency. The power of Buyers: Smart Phone specifications for the new products, buyers are mostly high and demand is strong financially, so bargaining power is not high. The power of Suppliers: Smart Phone because of the low level of standardization, the upstream firms have high bargaining power. The threat of Substitutes: Alternatives, such as ordinary phones, PDA Phone and other converged devices, an alternative high. Competitive Rivalry: Contending vendors in the industry, intense competition, the main competition for the OS systems, and is committed to pricing strategies and new models of development.

HTC’s core Competencies Products, technology, customer base growth mode adopted jumping. Enterprises in the production of design flexibility and adaptability of the performance is superb, with OEM / ODM design capability, with low-cost control, flexibility, speed capabilities.

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