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·      Resources: assets, possessions, skills and knowledge are all part of what make up the value of a company

·       Tangible resources: machinery, buildings, physical attributes

·      Intangible resources: assets that are not physical for example skills

·      Capabilities: the mixed of intangible resources and tangible resources

·      Having sustainable competitive advantages has been difficult nowadays because of some factors in the global economy such as globalization

·      4 sources of a company’s advantage: valuable capabilities, singular capabilities, expensive capabilities and irreplaceable capabilities

·      A company has to multitask between managing their current resources and develop new ones

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María Fernanda García Villanueva A01376624

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María Fernanda García Villanueva A01376624

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A01023310
Resources: Are all assets, organizational process, acpabilities, etc.., that allows companies to creat value for their costomers.
Capabilities: Is when companies mixes its tangible and intangible resources in order to make or creat capabilities. Caabilities are best know in the tasks of production. All capabilities have the idea of creating value.
Now a company can have a davantage by having singular capabilities, valuable capabilities, irreplacable capabilities and hard to imitiate capabilities. With this advantage a company can be at the top of the market for a long time

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José Roberto León A01025055

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Core competencies are those that give rise to a company's competitive advantage over its rivals.

The influence of the economic environment (external environment) affects the success of the company, but also the way in which the company uses its resources and capabilities as a foundation for the core competencies demonstrate how valuable it is to know the internal organization of a company.

Innovation is paramount if a company wants to maintain its competitive advantage since the competitive advantage is limited in time.

The possibility of sustaining a competitive advantage depends on 3 factors:

1. The speed at which changes in the environment cause the obsession of the central competition.

2. The availability of substitutes for the central competition.

3. The ease of imitating the central competence.

It is because of these factors that companies are challenged to effectively manage their current core competencies and develop new ones at the same time.

Identifying and managing resources so that a company's goods and services create more value for its customers than its competitors do.

A company that analyzes its internal organization will know what it can do:

Coordinate what you can do (based on the resources, capacities and core competencies that exist in your internal organization) with what you could do (based on the opportunities and threats present in the external environment).

Analyze the internal organization:

The global mindset: ability to analyze, understand and manage an internal organization so that it does not depend on a single country, culture or context.

Evaluators should study the company's portfolio of resources and capabilities.

Resources are the source of capabilities and sometimes lead to the development of core competencies.  In turn, these competencies lead to the company's competitive advantage.

Creation of value: companies seek to produce goods and services that create more value for their customers than their competitors do.

Value is measured by product performance characteristics and those attributes for which customers are willing to pay a premium.

The stronger the core competencies, the more value you will have for your customers.

Value is the source of above-average performance.

Value you are looking →  strategy to use.

Strategy to be used guided through integrated core competencies based on knowledge of the external context.

The strategy is only effective if it is based on the exploitation of the company's central capacities and competences.

Resources: these are the assets of the company.

1. Tangible: assets that can be seen and quantified. The debt capacity and the state of its physical facilities (financial statements serve to establish the value of many tangible resources).

Financial, organizational, physical and technological resources (copyrights, patents, trademarks and trade secrets).

1. Intangibles: assets that have deep roots in the history of the company and that have been accumulated over time. They are difficult to analyze and to imitate. They are a large source of core capabilities and competencies, which is why the success of companies depends more on their intellectual capabilities and systems than on their physical assets. The less visible a resource is, the higher its value.

Human resources (knowledge, confidence, skills and ability to collaborate with others), innovation (ideas, scientific and innovation capabilities), good reputation (brand name, product prestige, organizational culture, etc).

Capabilities: the company combines its tangible and intangible resources to create capabilities. These are usually developed in specific areas (marketing, production and R&D) or functional areas.

Core competencies: those that give rise to a company's competitive advantage over its rivals. They are the activities that a company performs well in comparison with its competitors, giving them unique added value to what it sells to its customers.

Construction of central competences: there are two ways:

1. The four criteria of sustainable competitive advantage: the capabilities of companies must meet the following criteria:

Valuable

Singulars

Expensive to imitate

Irreplaceable

1. Value chain analysis

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A01027080

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Nicole Salazar Rodríguez

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- According to the World Economic Forum competitiveness is “the set of institutions, policies and factors that determine the level of productivity of a country”. Productivity is the key word for this concept, because when you rise competitiveness, you rise productivity.
- The competitive advantage it’s what makes you different from your competition.
- You can gain competitive advantage through innovation.

o   Show unique qualities: what do you that others don´t?

o   Highlight advantages: what do you do better than your competitor?

o   Display parity: differences between you and your competitor
o   Don´t run from disadvantages

Resources are not competitive advantages, in fact resources create value when the company uses them to produce capabilities.

Capabilities are the combination of tangible and intangible resources. Companies use them to perform organizational tasks to produce, distribute and provide services to create value

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Self study 6: Competitiveness

Enterprises have to find a way to create value in a highly competitive and changing world.

Every enterprise should manage to identify what their competitive advantages are, how to exploit them, or even how to create them if they don’t have any.

In order to do this, it is essential to know the customer and adapt to their preferences and needs.

Netflix is a good example of this, as it repeatedly changed its business model to adapt to the market and what people wanted. Though it initially resulted in a loss of money, their efforts eventually proved successful and they are still listening to what people want from them.

In order to adapt a company to the current market, it is essential to consider that technology plays a big role in today’s world. If you don’t adapt and perhaps even recreate yourself in a way that is compatible with technology, you’re bound to fall behind.

Most of today’s most successful enterprises are related to technology somehow, and many of them are online platforms.

Every competitive advantage is temporary because, eventually, your competitors will imitate it. You have to figure out how to make the most of them while they last.

It’s important to have a “global mentality”. This means that it’s not convenient to design your business or supply chain with only one country in mind.

Value is determined in terms of the characteristics that make customers willing to pay a certain price for a product or service.

Competences are the key to a company’s value.

In order for a competitive advantage to be sustainable, it cannot be imitable or replicated.

Supply chain analysis allows a company to figure out which of its processes generate value and which don’t.

In order to come up with a functional competitive advantage, it is important to carry out an industry analysis.

It is convenient to make some of your advantages rely on experience, because that makes them hard to imitate.

One must analyze both the short and long term.

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Resources

The resources of any firm are described as the assets, knowledge and skills they have. Therefore, these can refer to the physical materials they have, to the talent that works for the brand.

Capabilities

The capabilities refer to the ability of the companies to make use and take advantage of the resources they have. Like the resources, they are a big part of getting a competitive advantage. It’s imperative to recognize and cultivate them. Firms can have multiple competencies, and, in order to identify them they should take into account those competencies: provide superior value to consumers, they are difficult to replicate, and they should be rare.

Value

This is described as the monetary, material or assessed worth of an asset, good, or service. Value can go beyond the financial explanation, diving into the area of providing and proving to be of benefit to the company’s stakeholders.

Competitive Advantage

It refers to the factors that allow brands to have advantages over their competitors, for example, being able to offer their products at a cheaper price. These allow the firms more opportunities to become more appealing to the consumers. Some factors that are considered to provide competitive advantage are: branding, intellectual property and customer services. The two main types of competitive advantage are: differential and comparative.

All of these concepts are connected. It could be said that by making use of the resources through the competencies can create value and lead to competitive advantage.

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-        The world is competitive, so for enterprises to stay in business they need to have a competitive advantage.

-        First mover’s advantage is important, as more experienced enterprises can have a hard-to-steal competitive advantage.

-        Competitive advantage creates value, that is the amount of money customers are willing to pay for a certain characteristic on a product.

-        An enterprise must always listen to the market and their customers’ needs, just as Netflix did. It changed its business model according to what the market dictated and eventually were successful. It is important to know that they had a first mover’s advantage in the industry.

-        When others start to imitate your competitive advantage then it’s time to innovate and change it. It also happened to Netflix that others started to imitate their business model and advantages.

-        Global strategies are always better, companies with a business model designed to fit local markets tend to struggle when expanding.

-        Technology is the enterprise’s friend, companies that do not adapt to technological changes are bound to fail. Most of successful enterprises depend on technology or are technology enterprises themselves.

-        To be competitive, a company needs to make analyses of their supply chain, product, competitive advantage, and industry to know what creates value and what does not create value. And modify those aspects that do not create it.

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Resources A stock of cash, materials, staff, and different resources that can be drawn on by an individual or association so as to work effectively.

Capabilities Power or advantage to do something with capabilities that stand out from the company.

Value It is measured in terms of the characteristics of the product's performance and those attributes for which customers are willing to pay an amount.

Competitive Advantage A condition or circumstance that puts a company in a favorable or superior business position.

What are the sources of a company's advantage?
1. Uniqueness (Hard to replicate)

2. Added Value

3. Sustainable over time

4. It is not about what, but about why.

• Innovation is essential for competitive advantage
• People are an important resource for people to learn to innovate (Peer to Peer)
• All competitive advantages have a limited duration

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Recursos, capacidades y competencias centrales

1.     Recursos:

Abarcan a los fenómenos individuales, sociales y organizacionales. Las compañías deben de cambiar sus recursos para forjar sus capacidades.

Ellos utilizan la competencia central de su tecnología para ofrecer sus servicios para cualquier persona que tenga conexión a internet y una tarjeta para comprar.

a.     Recursos Tangibles - Activos que podemos ver y cuantificar. (maquinaria de producción, instalaciones, centros de distribución, etc.)

b.    Recursos Intangibles - Activos que tienen raíces profundas en la historia de la compañía y se han ido acumulando. (conocimiento, confianza, empleados, capacidades administrativas, rutinas organizacionales, nombre de la marca, innovaciones, etc.) à Entre menos es visible un recurso (entre más intangible), más valor tiene para crear capacidades, ya que para las competencias es mucho más complicado replicarlo.

2.     Capacidades:

Las compañías combinan ambos recursos para crear capacidades.

Desarrollo, transmisión y el intercambio de información y conocimiento entre el capital humano y la compañía.

3.     Competencias Centrales:

Capacidades que funcionan como origen de la ventaja competitiva de una compañía frente a sus rivales, reflejando su personalidad.

Construcción de competencias centrales:

Los 4 criterios de la ventaja competitiva sostenible:

Existir cuando los competidores no pueden replicar los beneficios de la estrategia de una compañía y cuando carecen de los recursos necesarios para tratar de imitarla.

1.     Capacidades Valiosas - Explorar las oportunidades o neutralizar las amenazas presentes en el entorno externo, creando valor a los clientes.

Cada vez son más vulnerables a las mismas presiones del mercado de capitales por los medios digitales por la facilidad de imitar una idea o producto.

2.     Capacidades singulares - pocos competidores. (Ej: Walmart - fomentar valiosas iniciativas verdes/sostenibles).

3.     Capacidades costosas de imitar -  Otras compañías no pueden desarrollar fácilmente. La compañía tiene una cultura organizacional única y valiosa en las primeras etapas de su historia, esto podría hacerlo más difícil de copiar perfectamente bien. También cuando hay causas ambiguas es difícil de copiar, ya que los competidores no comprenden cuáles son las capacidades de la compañía son las competencias centrales que utiliza como cimiento de su ventaja competitiva. La última es la complejidad social, como las relaciones interpersonales, confianza, y la amistad entre los trabajadores, proveedores y clientes.

4.     Capacidades insustituibles - No tienen equivalente en términos estratégicos. El valor estratégico de las capacidades se incrementa de medida que se va dificultando la posibilidad de sustituirlas. (entre más intangible, mejor)

Análisis de cadena de valor:

Permite a la compañía saber cuáles partes de sus operaciones crean valor y cuáles no.

a.     Actividades de cadena de valor -  la compañía las desempeña a efecto de desarrollar productos para, vender, distribuir y brindar servicios para esos productos de modo que creen valor a los clientes.

b.    Funciones de apoyo - incluyen actividades o las tareas que desempeña la compañía a efecto de apoyar el trabajo que se desarrolla para crear, vender, distribuir y brindar servicios para sus productos.

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Value – to the customers

An organization offers valueto customers through their operations, as the competition grows between companiesgrows among companies, they are forced to fundamentally reconsider where and how they add value. What they usually do is to make some changes in the value proposition. Also,according to many of the executives interviewed in the KPMG report, “this will require companies constantly to review and adapt their business model around the needs of the customer. What makes this more complex is that customer requirements differ from country to country, so often an established business model will need to be adapted as companies enter new markets”. (KPMG International, 2005)

Resources

They are the inputs of the production process of a companyand are divided into two types

1.    Tangible resources - they are assets that we can see and quantify; for example, production machinery, manufacturing facilities, and distribution centers.

2.    Intangible Resources - These types of assets have deep roots in the history of the company and have been accumulated over time. Resources are intertwined with routines that have unique patterns, which is why they are difficult to analyze or imitate.

Competencies

When you make a good use of your skills, having advantage over the other companies, creating value and establishing a road to success.
On the other hand, core competencies are the capabilities that a company has to generate competitive advantage over its rivals and are obtained over time through an organizational process that accumulates different resources and capabilities, adding a unique value to the goods or services that are sold to customers. What they represent is the competitive spirit and personality of the company.

Competitive advantage

According to my “Value Chain” professor, Michael Portar says that competitive advantage is when a company has the ability to overcome another within the same industry or sector. Also, If a country creates conditions for many companies to be competitive within it, it creates an environment that creates better conditions for international trade. (Pliego, F. 2020)

“… the majority of global executives now see their business model as a more important source of competitive advantage than their products…” (KPMG International, 2005) According to the text of Rethinking the business modelwhat companies should do in their business models is to evolve and adapt to reflect changes in the business environment. The best example of having competitive advantage is the Netflix business model evolution because they noticed their strengths and weaknesses to evolve towards offering the best service and creating a unique value.