INSTRUCTIONS: Please RESPOND to this answer from the Point of view as a student. Use credible sources and respond as if you are a manager of a marketing agency. Tell this student what your agency would think of each of these answers:
The SWOT analysis is a tool used by business professionals to analyze a firm’s strengths, weaknesses, opportunities, and threats. The resource-based inputs included in the strategy process are a firm’s strengths and weaknesses. These internal characteristics act as drivers which allow firms to get a leg up over the competition in business. To better understand the firm’s strengths and weaknesses we must take a closer look at competitors within the competitive environment. Firms should strive to evaluate other firms that they are in competition with. To do so adequately, firms must utilize various tools suitable for analyzing the competition. If a firm has access to internal resources and capabilities which other firms do not, then they’ll continue to maintain a competitive advantage over an undetermined period of time. In Army, we have to constantly analysis our strengths and weaknesses. Our opportunity can be to recruit highly trained expertise in modern technology to be deployed in the intelligence work. United States is one of the countries that attract many people from all over the world and this has contributed positively to sustainable supply of labor. Highly skilled persons travel to seek citizenship and eventually employment within the United States army.
If an organization possesses internal resources and capabilities which other firms do not, then they’ll continue to maintain a competitive advantage. One way that a firm might do this is by expanding its manufacturing capacity to sufficiently fulfill market demand. Once the new product comes out the firm can charge premiums on the products for the first few months thereby recuperating some of the exorbitant costs of manufacturing expansion. Strategy’s which utilize speed to market and manufacturing process capability has been proven to work overtime in at a competitive technological industry which sees very rapid rate of disruption and short product life cycles (Carpenter & Sanders, 2012). Performing better than the competition over time is no easy feat but many firms achieve this difficult and impressive goal.
A firm’s skill at using its resources to create goods and services are a measure of its capabilities or competencies. Skills may be championed by an individual, a set of individuals, or embedded in an organizations framework in either its routine processes or rules of operation. Combining procedures with expertise enhances capability which are the activities of an organizations value chain. In other words, this is the total primary support value-added activities by which a firm produces, distributes, and markets a product (Carpenter & Sanders, 2012). When a firm does not have the necessary internal capability it will outsource their activities to external players. Distinctive competencies are those capabilities that set a firm apart from other firms. Core competencies are those capabilities central to an organizations core business operations.
In reality firms almost never have access to the same resources and capabilities. As a result, some firms maintain a competitive advantage over others. The result is a rich variety of strategy which firms develop to maintain competitiveness. There are at least 5 characteristics that determine whether a resource or capability can help a firm compete and achieve superior performance: value, rarity, inimitability, non-substitutability, and exploitability (Carpenter & Sanders, 2012). These 5 characteristics contribute to the VRINE Model which is an analytical framework that suggests a firm with resources and capabilities which contain these 5 characteristics will better gain a competitive advantage.
Determining whether or not a resource is valuable helps a firm determine if an opportunity or threat exists in the environment. We can test if a resource is valuable by determining if the resource allows the firm to meet a market demand or protect the firm from market uncertainty. If it is determined that the resource is valuable then the potential exists for the resource to contribute to normal profits for the firm (Carpenter & Sanders, 2012). Determining the rarity of the resource is also important because it helps the firm define the resources scarcity relative to demand. Those resources that are less rare do not aid a firm in gaining a competitive advantage. If it is determined that a resources is rare then the potential exists for the firm to achieve above normal profits until that resource is depleted or substituted.
Carpenter & Sanders (2012). Strategic Management Course Pack. XanEdu Publishing, Inc. 2012