Evaluating a Company's Resources and Competitive Position
1. Understand how to evaluate a company's internal situation and capabilities and
identify the resource strengths capable of becoming the cornerstone of the company's strategic approach.
2. Grasp how and why activities performed internally by a company and those performed externally by its suppliers and forward channel allies determine a company's cost structure and ability to compete successfully.
Learn how to evaluate a company's competitive strength relative to key rivals. Understand the role and importance of industry and competitive analysis and internal situation analysis in identifying strategic issues company managers must address .
Evaluating a Company's Extemal Environment
Draw a strategic group map showing the market positions of the companies in your industry. Which companies do you believe are in the most attractive position on the map? Which companies are the 1110st weakly positioned? Which companies do you believe are likely to try to move to a different position on the strategic group map? What do you see as the key factors for being a successful competitor in your industry? List at least three KSFs.
n Chapter 3 we described how to use the tools of industry and competitive analysis to assess a company's external environment and lay the groundwork for matching a company's strategy to its external situation. In this chapter we discuss the techniques of evaluating a company's resource capabilities, relative cost position, and competitive strength versus rivals, so as to lay the groundwork for matching the company's strategy to its internal situation. The analytical spotlight for assessing a company's situation will be trained on five questions: 1. 2. How well is the company's present strategy working? What are the company's resource strengths and weaknesses, and its external opportunities and threats?