Reviewer: Internal Scanning and Organizational Analysis
Resource-Based View (RBV)
1. Definition: Focuses on leveraging internal resources for sustained competitive advantage.
2. Key Concepts:
- Resources:
- Tangible: Physical assets like equipment.
- Intangible: Brand reputation, intellectual property.
- Human: Skills and expertise.
- Capabilities: Processes or systems that maximize resource utilization.
3. VRIO Framework:
- Valuable
- Rare
- Inimitable
- Organized
4. Strategic Implications:
- Sustained competitive advantage through unique resources.
- Path dependency, causal ambiguity, and social complexity enhance inimitability.
5. Critiques:
- May underemphasize external forces.
- Difficulties in measuring intangible resources.
- Need for adaptability to dynamic environments.
Business Models
1. Key Types:
- Product-Based: Profit through physical or digital products.
- Service-Based: Revenue from intangible services.
- Subscription: Recurring payments, focus on retention.
- Freemium: Free basic services with paid premium features.
- Marketplace: Connect buyers and sellers.
- Platform: Technological foundation for third-party developers.
- Advertising: Revenue from user attention.
- Franchise: Licensing business model systems.
- Razor and Blade: Low-cost main product with profitable complements.
- Direct-to-Consumer (D2C): Selling directly via e-commerce.
- Peer-to-Peer (P2P): Facilitating individual exchanges.
- Social Enterprise: Balancing social impact and financial sustainability.
Portfolio Analysis
1. Tools:
- BCG Matrix:
- Stars: High growth and market share.
- Cash Cows: High market share, low growth.
- Question Marks: Low market share, high growth.
- Dogs: Low market share and growth.
- GE/McKinsey Matrix: Evaluates industry attractiveness and business strength.
- SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats.
2. Benefits:
- Resource allocation and risk management.
- Focus on core competencies.
3. Limitations:
- Oversimplification and data dependency.
- May ignore interdependencies and dynamic market conditions.
Corporate Parenting
1. Roles:
- Strategic direction and resource allocation.
- Synergy creation among business units.
- Performance management.
2. Strategies:
- Hands-off: Portfolio manager approach.
- Strategic Guide: Synergy manager approach.
- Hands-on: Developer approach.
3. Advantages:
- Efficiency and stronger strategic alignment.
- Enhanced competitive advantage.
4. Challenges:
- Risk of over-centralization and resource strain.
- Managing conflicts among diverse units.
