Internal and Competitive Analysis of the Firm
1. Briefly describe the important internal resources of the company, which might include excellent leaders, important brand names or trade marks, excellent locations, a good reputation, superior relationships with stakeholders, size, economies of scale, efficiency, highly skilled employees, or many other factors. Which of these resources/capabilities is a source of sustainable competitive advantage? Also, identify areas where the firm has weakness and possesses deficient resource/capabilities. Where is the firm adding or not adding value? Where in its value chain is it superior/inferior to its rivals? You may want to think about these in terms of the building blocks of competitive advantage.
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2. Conduct a brief financial analysis of the firm and its performance. Select a few key performance indicators that you believe best reflect the firm’s current situation. You should benchmark the firm’s performance against its rivals to identify the most critical ratios/indicators. Explain the implications of these indicators. Just donâ€™t present them. Explain why these indicators are critical to your analysis. What might be the strategic explanation for these performance differences?
3. Identify the firm’s major rivals, and how your firm is positioned relative to those rivals in terms of strategy and performance.
4. What are the key success factors in the firm’s primary industries/segments? How well is the firm positioned relative to those factors and relative to rivals?