Internal Analysis: Distinctive Competencies, Competitive Advantage and Profitability

4160 Words Sep 5th, 2011 17 Pages
Internal Analysis: Distinctive Competencies, Competitive Advantage and Profitability
Posted on November 8, 2010 by Domingo Salazar, MBA
The Roots of Competitive Advantage
The Internal analysis is concerned with the identifying the strengths and weaknesses of the company. The main implications on the read material about strategy formulation are as follows: Starting on distinctive competencies, we can differentiate its products from its rivals, in order to determine our/them strengths, including two complementary sources: tangible resources and intangible resources, which in turn are referred to the assets of a company; following this complementary sources, are the capabilities of the company, which coordinates the company’s skills,
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SWOT Analysis
SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company. A SWOT analysis should not only result in the identification of a corporation’s core competencies, but also in the identification of opportunities that the firm is not currently able to take advantage of due to a lack of appropriate resources. (Wheelen, Hunger pg 107)
The SWOT analysis framework has gained widespread acceptance because it is both simple and powerful for strategy development. However, like any planning tool, SWOT is only as good as the information it contains. Thorough market research and accurate information systems are essential for the SWOT analysis to identify key issues in the environment. (Marketing and Its Environment, pg 44)
Assess your market: * What is happening externally and internally that will affect our company? * Who are our customers? * What
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