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What are some existing (or potential) internal sources of competitive advantage? What can the company do to strengthen (or realize) them?

ASSIGNMENT

1. Perform industry analysis: How attractive is the industry? In terms of strategy, what has the company done (or could have done) to compensate for structural disadvantages? What has it done (or could have done) to benefit from structural advantages?

Few industries are perfectly attractive or wholly unattractive. Here you combined industry analysis with a description of how a company responds to the attractive and unattractive features of its industry. The task explicitly calls for an industry analysis using the data in the case (up to 60 points). It then follows by asking what the company has done (or could have done) to gain from the attractive features of its industry, and to compensate for the unattractive features (up to 40 points for any combination of the two). A good answer involves evidence from the case (what has been done) and offers advice that is based on case data (what could have been done).

For an example of a good analysis, you may want to review Casadesus-Masanell’s Industry Analysis, where he shows how Wal-Mart managed to succeed in an industry that is less than attractive.

2. Assess resources and activity systems: What are some existing (or potential) internal sources of competitive advantage? What can the company do to strengthen (or realize) them?

By listing existing or potential internal sources of competitive advantage, in the form of resources or activity systems, you may receive up to 60 points. Naturally, a convincing presentation would include testing perspective resources and sketching activity systems, as demonstrated in the readings, class discussions, and Edition: March 1, 2023 © Dr. S. S. Levine 22 past analyses.

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