Air New Zealand essay

If a firm’s resources are both valuable and rare, a firm may achieve a competitive advantage (Newbert, 2008). A resource is considered valuable when it improves the efficiency and effectiveness of a strategy, and when it exploits external opportunities or neutralises external threats (Barney, 1991). This wording is somewhat confusing as it draws a direct connection with the environmental model, i.e. Porter’s (1985) five forces. The ‘value’ variable could therefore be rendered exogenous to the RBV (Priem and Butler, 2001). On the other hand, Peteraf (1993) praises the model for its internal focus and ability to uncover potential sources of competitive advantage which cannot be attributed to the external environment, notably because areas of value are often so difficult to identify (Newbert, 2008). The term ‘potential’ is used because not all resources have the ability to create a SCA

the internal analysis of the firm and the external analysis of the industry and competitive environment

Internal Capabilities and Resources 3.1 3.2 Analyze an organization's internal environment. Analyze the structure of an organization.

Identify elements of the external environment and internal resources of the firm to analyze before formulating a strategy.

The basis of a firms ability to successfully execute any strategy lie in it’s resources and capabilities.The greatest plan in the world means nothing without the means to carry it out. Resources, defined in the text Modern Competitive Strategy are: “relatively observable, tradable asset[s] that contributes to a firm’s market position by improving customer value, lowering cost, or both.”

9. Internal Resources: The management and conducting of the organization's resources to confirm its capability to perform throughout business as usual, besides being able to prepare the additional capacity needed during a turbulence.

Competitive advantage is a business concept describing attributes that may help an enterprise to pick off its competitors. Every enterprise has its own competitive advantages include natural resources, skilled person, high entry barriers and so on. With the full use of these competitive advantages, the company can offers their clients better services as well as focus on the target market. This is the main reason behind brand loyalty. It can be seen that knowledge assets of the company offer most of competitive advantages. Thus, if Southwest Airlines can treat its knowledge assets as unique resources and explore the business potential in each knowledge asset, they may establish appropriate strategy and more likely to get a higher level than other companies in the same industry as well as dominate the market.

He suggested that sustained competitive advantage derives from the resources and capabilities a firm controls that are valuable, rare, imperfectly imitable, and not substitutable. He further added that the resources and capabilities can be viewed in form of tangible and intangible assets. There are four different categories of resources financial, physical, human, and organization.

Provide full value of money for customers through reduce cost and enhance level of quality (Qantas Airways Limited, 2014).

For a business to be successful and have a competitive advantage, it is important to evaluate the company’s resources and capabilities (Pitt & Koufopoulos, 2012). Resources in a company are the productive assets owned (tangible or intangible) whereas capabilities are what the company can do with this (Grant, 2010). “Establishing competitive

There are five main components of an Internal Analysis, including resources, capabilities, core competencies, competitive advantage, and strategic competitiveness. Each component is the basis of next one in turn.

Resources are the source of the firm’s capabilities. Resources are bundled to create organisational capabilities. Some of a firm’s resources are tangible and intangible. Tangible resources are assets that can be seen and quantified. Intangible resources include assets that typically are rooted deeply in the firm’s history and have accumulated over time. Intangible resources are relatively difficult for competitors to analyse and imitate. The four types of tangible resources are financial, organisational, physical and technological. And the three types of intangible resources are human, innovation and reputational (Hanson, D., Hitt, M., Ireland, R. D., & Hoskisson, R. E., 2011, pp. 75-78).

The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis

This will help the company to deliver product and services that satisfy customers, hence increasing profitability.

The internal business environment includes factors within the organisation that impact the approach and success of the business operations. Formerly presented as core competencies, capabilities, leadership style and culture of an organisation. To understand its sources of competitive advantage from within a firm or an organisation will implement specific tools such as SWOT analysis (Strength, Weaknesses Opportunities and Threats), Value chain analysis, Resource based view, VRIO framework and BCG Matrix for instance.