Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
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Capabilities: What a firm does<br />
� Capabilities<br />
– Cannot be readily observed<br />
– Are not tradeable separately from the company.<br />
– Are developed by a company through coordinated action<br />
– Become important when they combine resources in unique combinations that<br />
create economic value and can lead to competitive advantage (Can contribute to<br />
higher value, lower cost or both.)<br />
� Firms compete on resources & capabilities as much as they do on products<br />
– Visible competition – product market competition<br />
– Invisible competition – resource & capability development and deployment<br />
Source: Robert M. Grant, Contemporary <strong>Strategy</strong> Analysis: Concepts, Techniques, Applications<br />
(5th edition, Blackwell, 2004)<br />
© 2006 <strong>Dr</strong>. <strong>Bernd</strong> <strong>Venohr</strong><br />
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