Professional Documents
Culture Documents
ID: 20155636
12/27/16
1960S FRAMEWORK
SWOT Analysis
Show How Firms Sustain their competitive advantages by
implementing strategies
Exploiting Strengths
Responding to Opportunities
Neutralizing Threats
Avoiding Weaknesses
Porters Five Forces Model
Attributes of an attractive industry and suggests greater
opportunities with less threats
control
Resources may not be perfectly mobile, therefore Heterogeneity can be long-lasting
materials etc
Human capital. Ex: training, experience,relationship,worker & manager skills
Organizational capital . Ex:reporting structure, planning, controlling, informal
Valuable
RARENESS
However, valuable and common resources can also be used to ensure firms survival.
If number of firms possess a valuable of resources is less than the number of firms
needed to generate perfect competition industry : Its a source!
Imitability
SUBSTITUABILITY
socially complex
PROPOSED FRAMEWORK
imitable :
resources
strategy
not Rare:
Valuable :
Enable to recognize opportunities & threats
Firms that recognize the importance of this
Rare:
Firms try to prevent processes from unfolding
substitutable:
Formal
Valuable :
Imperfectly imitable
Processes are socially complex
substitutable
Substitutable through formal planning?
informal
Valuable :
imitable :
resources
not Rare:
markets
If embedded through formal-informal
substitutable:
Valuable :
suppliers
reputations
imitable :
setting
Rare:
substitutable:
IMPLICATIONS
Social Welfare and S.C.A
Higher level of performance a firm with a resources are due to the efficiency it exploits the
advantages, and not to the effort of firm to create a imperfectly competitive conditions in a way that
fails to maximize social welfare.
S.C.A