sm project report_final
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Core Competencies andSustainable Competitive
Advantage
Group 5
Hitesh Chopra PGP/13/275Manish Nahar PGP/13/280
Prashant KhuranaPGP/13/290
Swati Bhatia PGP/13/304
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Agenda
Core Competence andSustainable CompetitiveAdvantage
Resource Based View
Empirical Analysis
Strategic Architecture
Apple Computers, Inc. Sustainable Competitive Advantage
of Apple: Results
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ResourcesTangibleIntangible
Capabilities
ore Competencies
iscovering Core Competencies
riteria for Sustainable Competitive Advantagealue chain analysis
ustainableompetitiveAdvantage
ValueRarityInimitableOrganisationSubstitutionDynamic
Outsourcing
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Ca
pa
bili
ty
Rare
-Valua ble
Co
re
Co
mp
et
en
cy
Costly to Imitate
-Non Substitutable
Sustainable Competitive A
Exploitability
ilities
lead to Sustainable Competitive
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Hypothesis: Dimensions of core competencieshave a significant positive relationship withcompetitive advantage
Methodology : Core Competencies & Competitive
Advantage factors were rated and then aRegression Analysis was carried out
mpact of Core Competencies on:ompetitive Advantage Empirical Analysis
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Analysis
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Developing Strategic Architecture
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C.K. Prahlad and Gary Hamel in the Harvard Business Review, Corecompetencies form the roots of the organization tree,
providing nourishment and stabilization.
, , .he corporation like a tree grows from its roots Coreroducts are nourished by competencies and engender business.nits whose fruits are end products
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Agenda
Core Competence and Sustainable CompetitiveAdvantage
Apple Computers, Inc.
Why Apple?
SWOT Analysis
VRINE Analysis
Applicability of Core Competencies
Innovation in Large Enterprises Causal Ambiguity Paradox
Competency based model of Sustainablecompetitive advantage
Firm Resources and Sustainable
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ddressatentneeds
AttractieDesigns
ut ofhe boxthinking
elatedndUnrelate
Diversification
INNOVATION
oreompetency
ndustainableompetitiveAdvantage
Why Apple?
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SWOT
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Valuable
Rare
Inimitable
-Non Substitutable
Exploitable
Competence in innovation in technology and design Good sales channels Human Capital
Steve Jobs and Jonathan Paul Ive They drive the innovation in technology and designs
Resources are inimitable Comes from the Freedom to exploit the creative skills Very hard and costly to imitate
Firm specific knowledge as well as the culture within the company are difficul Culture drives the zeal within the company to excel and innovate
bove 4 steps show that the company has got the capabilities to exploit the reso.pple is synonymous with Innovation Hence they are able to command a premium fo
igher product Aspiration and Realization
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Apple: The Innovation Machine
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bly favour retention of routines that lead to distinctive competence and speci
experimentation
CompetencyTraps
Innovation in Large Enterprises
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-The capacity to innovate is in itself a core competence
Experimentation with these three is necessar
Innovation in Large Enterprises
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Bringing the best personal computing experience through its innovative
products
Innovation at Apple
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lly Ambiguous Competencies
Software
Superiority
Address Latent Needs
Are Steve Jobs and Jonathan Ive the only reasons for Apple s success??
Internally Developed
Strategic Acquisitions
Encouragement of tacit competenci
The Causal Ambiguity Paradox
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M a n a g e ria lC o m p e te n cie s a n d S tra te g ic fo cu s
-O u tp u t b ased com p eten cies-In p u t b ased com p eten cies
-Tra n sfo rm a tio n b a sed co m p e te n cie s
It is a n in te g ra te d m o d e l th a t co m b in e d,a llsou rces of com p e te n cie s n a m e ly
ased model of Sustainable competit
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urces and Sustainable Competitive
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Agenda
Core Competence and SustainableCompetitive Advantage
Apple Computers, Inc.
Sustainable CompetitiveAdvantage of Apple: Results
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Financials
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Financials
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Financials
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159
263
301300
325
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Bibliography
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Bibliography
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Bibliography
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Thank You
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