Презентация на тему Evaluating a company's resources and competitive position

is competitive intelligence?

Key points in Evaluating a Company's

Resources and Competitive Position:
How well is the present strategy working? 
What is the company's resource SWOT analysis?
Are the company's prices and costs competitive?
Is the company competitively stronger or weaker than key rivals? 
What strategic issues and problems merit front-burner managerial attention?

convert inputs into outputs which, in turn, add to the bottom line and

help create competitive advantage

first suggested by Michael Porter (1995) as a way

of presenting the construction of value as related to end customer.
It can:
Increase your competitiveness
Reduce your costs
Improve your market share
Bottom line – improve overall profitability

relevant because
Costs, performance features, and quality of inputs provided

by suppliers influence a firm’s own costs and product performance
Value chains of distributors and retailers are relevant because
Their costs and profit margins represent “value added” and are part of the price paid by ultimate end-user
Activities they perform affect end-user satisfaction

to differences in value chains of rival companies:
Different strategies
Different

operating practices
Different technologies
Different degrees of vertical integration
Some companies may perform particular activities internally while others outsource them

and threats
Information which makes companies and local industries more

competitive
Forecasting of changes about the economic environment
Actionable recommendations from analysis of the environment

It is the total knowledge a company or a local industry possesses about the environment in which it competes gathered in an ethical manner

Competitive Position
Key indicators of How well is the present

strategy working:
Trend in sales and market share
Acquiring and/or retaining customers
Trend in profit margins
Trend in net profits, EPS, and ROE
Overall financial strength and credit rating
Efforts at continuous improvement activities
Trend in stock price
Image and reputation with customers
Leadership role(s) – Technology, product quality, innovation, etc.

Competitive Position (contd.)
What are the company's resource SWOT? 
A strength

is something a firm does well or an attribute that enhances its competitiveness
Valuable skills, competencies, or capabilities
Valuable physical assets
Valuable human assets
Valuable organizational assets
Valuable intangible assets
Important competitive capabilities
An attribute placing a company in a position of market advantage
Alliances or cooperative ventures with partners

poorly, or a condition placing it at a disadvantage
Resource

weaknesses relate to
Inferior or unproven skills, expertise, or intellectual capital
Lack of important physical, organizational, or intangible assets
Missing capabilities in key areas

Key points in Evaluating a Company's Resources and Competitive Position (contd.)

offering
Good match with its financial and organizational resource capabilities
Best prospects

for profitable long-term growth
Potential for competitive advantage

Key points in Evaluating a Company's Resources and Competitive Position (contd.)

rivals
Entry of lower-cost foreign competitors
Onerous regulations
Rise in interest rates
Potential

of a hostile takeover
Unfavorable demographic shifts
Adverse shifts in foreign exchange rates
Political upheaval and/or burdensome government policies

Key points in Evaluating a Company's Resources and Competitive Position (contd.)

depends on how well a company manages its value

chain relative to how well competitors manage their value chains
When a company’s costs are out-of-line, the activities responsible for the higher costs may be due to any of three parts of industry value chain

key rivals?
Whether a company is competitively stronger or weaker

than key rivals hinges on the answers to two questions:
How does the company rank relative to competitors on each important factor that determines market success?

Does the company have a net competitive advantage or disadvantage vis-à-vis major competitors?