1. Resources, Capabilities & Core Competencies Sumber: Gary Hamel & C.K. Prahalad. Competing for the future. Harvard Business Review. Components of Internal Analysis Leading to Competitive Advantage & Strategic Competitiveness

2. Resources, Capabilities & Core Competencies Sony that benefit is "pocketability," and the core competence is miniaturization Federal Express the benefit is on-time delivery, and the core competence, at a very high level, is logistics management DELL core competencies Global production……strength in Supply chain Direct selling with interactive online shopping to cut of cost Value creation: low cost than competitor Management guru Michael Porter argues that business strategy is not about operational effectiveness (doing things better), but about doing things differently. For Porter, 'Competitive Strategy' means deliberately choosing a different set of activities to deliver a unique mix of value. Core competencies of a company can be defined as a set of skills and expertise that enable a company to deliver exceptional value to customers.

3. Components of Internal Analysis Leading to Competitive Advantage & Strategic Competitiveness Resources, Capabilities & Core Competencies

4. Resources, Capabilities, and Core Competencies Resources are the source of a firm’s capabilities. Resources are bundled to create organizational capabilities. Capabilities in turn are the source of a firm’s core competencies, which are the basis of competitive advantages

5. Resources Tangible resources are assets that can be seen and quantified. Resources are inputs into a firm’s production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers. Resources, Capabilities, and Core Competencies

6. Resources Intangible resources include assets that typically are rooted deeply in the firm’s history and have accumulated over time. Resources, Capabilities, and Core Competencies

7. Capabilities Unilever Garuda Indonesia Apple Samsung electronic Herbal product PT. sidomuncul Unilever Marta tilar Apple - Sony Resources, Capabilities, and Core Competencies

8. Capabilities exist when resources have been purposely integrated to achieve a specific task or set of tasks. Capabilities Critical to the building of competitive advantages, capabilities are often based on developing, carrying, and exchanging information and knowledge through the firm’s human capital Exp: Client-specific capabilities often develop from repeated interactions with clients and the learning about their needs that occurs Capabilities often evolve and develop over time Dynamic Capability Capacity (1) to sense and shape opportunities and threats, (2) to seize opportunities, and (3) to maintain competitiveness through enhancing, combining, protecting, and when necessary, reconfiguring the business enterprise’s intangible and tangible assets. Resources, Capabilities, and Core Competencies

9. Firms must also be able to utilize the knowledge that they have and transfer it among their business units The firm’s challenge is to create an environment that allows people to integrate their individual knowledge with that held by others in the firm so that, collectively, the firm has significant organizational knowledge Capabilities Resources, Capabilities, and Core Competencies

10. Capabilities Knowledge (information, intelligence, and expertise) Transfer Knowledge is gained through experience, observation, and inference and is an intangible resource Learning Organization Resources, Capabilities, and Core Competencies

11. Core Competencie s core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals. Capacity of an integrated set of resources to integratively perform a task or activity Core competencies emerge over time through an organizational process of accumulating and learning how to deploy different resources and capabilities Not all of a firm’s resources and capabilities are strategic assets—that is, assets that have competitive value and the potential to serve as a source of competitive advantage Resources, Capabilities, and Core Competencies

12. Building Core Competencies

14. Four Criteria of Sustainable Competitive Advantage Capabilities that are valuable, rare, costly to imitate, and non substitutable are Core Competencies Core competencies are sources of competitive advantage for the firm over its rivals. Valuable capabilities Rare capabilities Costly-to-imitate capabilities Non substitutable capabilities SCA

15. Building Core Competencies

17. Sumberdaya melimpah, Daya saing dipertanyakan? Apakah Masalahnya?

18. Conditions Affecting Managerial Decisions about Resources,Capabilities, and Core Competencies

19. Building Core Competencies

20. Competitive Advantage Next Week…….#6

21. Market Base Strategy Vs Resources Base Strategy

22. To be continued…next slide "Strategic management is trying to understand where you will sit in tomorrow's world, not where you hope to sit; assessing where you can be and deciding where you want to be." - John F Welch. General Electric Co