Strategic capability

13 important questions on Strategic capability

What is strategic capabilities?

Is the resources and compentences of an organisation needed for it to survive and prosper

What are threshold competences?

Activities and processes needed to meet customers minumum requirements and therefore continue to exist

Why is the management of costs a threshold strategic capability?

- Customers do not value product features at any price
- Competitive rivalry
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What are they key cost drivers to manage cost effectively?

- Economies of scale
- Supply costs
- Product/ process design
- Experience
- Growth is not optional
- Unit costs should decline year on year
- First-mover advantage

What criteria need to be fulfulled by core competences if inimitable strategic capibilities will achieve competitive advantage?

- They must relate to an activitity or process that underpins the value in the product or service features - as seen through the eyes of the costumer.
- The competences must lead to levels of performance that are significantly better than competitors
- The competences must be difficult for competitors to imitate

Why could core competences be difficult to imitate?

- Internal linkages
- External interconnectedness

In which forms does casual ambiguity exist?

-Charastesteristic ambiguity
- Linkage ambiguity

Which forms can substitution take?

- Product or service substitution
- Competence substituition

What are the key issues in a value chain network?

- Wich activities are centrally important?
- What are the profit pools?
- The 'make or buy' descision
- Parnering

What are the different approaches of benchmarking?

- Historical benchmarking
- Industry/sector benmarking
- Best-in-class benchmarking

What are the dangers of benchmarking?

- Measurement distortion (you can get what you measure)
- Surface comparisons

What does a SWOT do?

Summarises the key issues from the business environment and the strategic capabillity of an organisation that are most likely to impact on strategy development

What are the main dangers of SWOT?

- Long list
- Overgeneralisation

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