The Strategic Position
The Strategic Position Chapter 3: Strategic Capabilities Gokhan Turgut
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.2
Strategic capabilities: the key issues
Figure 3.1
Strategic capabilities: the key issues
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.3
Resources and competences
• Resources are the assets that organisations have or can call upon (e.g. from partners or suppliers),that is, ‘what we have’ . • Competences are the ways those assets are used or deployed effectively, that is, what we do well’.
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.4
Components of strategic capabilities
Table 3.1
Components of strategic capabilities
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.5
Redundant capabilities
• Capabilities, however effective in the past, can become less relevant as industries evolve and change. • Such ‘capabilities’ can become ‘rigidities’ that inhibit change and become a weakness.
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.6
Dynamic capabilities
Dynamic capability is the ability of an organisation to renew and recreate its strategic capabilities to meet the needs of changing environments.
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.7
Threshold and distinctive capabilities (1)
• Threshold capabilities are those needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market – ‘qualifiers’. • Distinctive capabilities are those that critically underpin competitive advantage and that others cannot imitate or obtain – ‘winners’.
Johnson,
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.2
Strategic capabilities: the key issues
Figure 3.1
Strategic capabilities: the key issues
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.3
Resources and competences
• Resources are the assets that organisations have or can call upon (e.g. from partners or suppliers),that is, ‘what we have’ . • Competences are the ways those assets are used or deployed effectively, that is, what we do well’.
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.4
Components of strategic capabilities
Table 3.1
Components of strategic capabilities
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.5
Redundant capabilities
• Capabilities, however effective in the past, can become less relevant as industries evolve and change. • Such ‘capabilities’ can become ‘rigidities’ that inhibit change and become a weakness.
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.6
Dynamic capabilities
Dynamic capability is the ability of an organisation to renew and recreate its strategic capabilities to meet the needs of changing environments.
Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Slide 3.7
Threshold and distinctive capabilities (1)
• Threshold capabilities are those needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market – ‘qualifiers’. • Distinctive capabilities are those that critically underpin competitive advantage and that others cannot imitate or obtain – ‘winners’.
Johnson,