This paper is a progressive writing for a group business report. In this paper, the internal environment of the South African airline company, Embraer, will be analysed. For this, a resource-based model will be used to analyse Embraer's internal resources, capabilities and core competencies that helped Embraer gain a sustained competitive advantage. This will be followed by discussion on VRIO framework to identify aptitude of resources that assisted Embraer to perform superior over its counterparts. Included in the paper will also be discussion on the concept of value chain analysis which is a model companies use to analyse their activities that help them generate more value over its cost. In conclusion, the paper will state the strategic position of Embraer with a hint of recommendation for it to sustain competitive advantage. …show more content…
2016). Companies in the same industry can also struggle maintaining its competitive advantage because of their exposure to similar opportunities and threats in their market area (Rothaermel 2017). Hence, it is necessary for the companies to analyse their internal resources and capabilities that form their core competencies (Rothaermel 2017). It has been studied that a company’s differentiating internal environment accounts for more than half of its success (Rothaermel 2017). This resource-based view enables the company to identify their strength and weaknesses for strategic competitiveness (Rothaermel 2017). An analysis of a company’s external opportunities and threats in combination with its resources and capabilities propels activities for strategic manoeuvre (Hanson et al. 2016). This, in-turn, creates pathway for above-average returns (AAR) (Hanson et al.
This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better
Critically evaluate the resource-based view (RBV) of the firm as a means of explaining the sources and strength of the competitive advantage of Apple.
Acquisition and organisation of resources can be critical success factor in an organization. While on the other hand, change requires a firm to gain expand and utilise resource such as human, financial, knowledge as a crucial asset. Resource based approach supports this view and as Tywoniak (2007) claimed by that resource based view is the most dominant theory in history of management. This is achieved by targeting state of sustained competitive advantage by controlling resources and capabilities. This view emphasis on the need for a ‘fit’ among capabilities and external market, and since each firm has unique capabilities and resources, this result in achieving strategic
the internal analysis of the firm and the external analysis of the industry and competitive environment
The organisation chosen for this report is British Airways. This report will first provide an overview of the organisation. Then, British Airways competitiveness and internal and external factors influencing its performance would be evaluated and determined using competitive strategy models, namely SWOT analysis, PESTLE analysis and Porters Five Forces. Thirdly, the report also discusses the efficiency of the strategy by highlighting its core competencies and risk management strategy and, finally, conclusion and recommendations are provided based on the reports’ findings.
The following paper provides an analysis and evaluation of the current market position of Qantas and the airline industry. By assessing the company both internally and externally by applying PESTLE and Porter’s Five Force frameworks, this report will assess Qantas’ opportunities and strengths within the aviation industry. In addition to this, the report will focus on the specific resources and capabilities that enable Qantas to obtain a competitive advantage over its competitors through the use of the VRIO framework. A final analysis
This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy.
Analyze the external and internal environment for opportunities, threats, strengths, and weaknesses that impact the firm’s competitiveness.
Barney, J. (2004). Firm resources and Sustained Competitive Advantage. Strategy: Process Content Context: an international perspective, de Wit & Meyer , 285-292.
A firm’s value chain can be different for the different segments of business units of Virgin Atlantic, which could be understood in the context of business unit chain. In this context, applying the value chain of Virgin as a competitive tool would be deficient because it would constrain the analysis to a single type of business pursued by the airline. In essence, this would obscure the strategic importance of other in-demand products services that are critical in the airline transportation
The business environment of an organization reveals much about its competitiveness and the possible influences on the success of its strategies. The focus of this paper will be an environmental scan of the internal and external environments of two real-world firms, their competitive advantages and company strategies for creating value and sustaining competitiveness, measurement guidelines for verifying strategic effectiveness and their evaluation.
This case study looks at the strategy of South African Airways (SAA). It will look at the various business processes that are involved in the strategy implementation of this airline industry. The airline operates internationally, domestically and regionally. The assignment will look at the strategy development for the domestic operations.
Moving ahead,in order to get the idea about company’s internal environment and its capacity to survive and prosper in the market(Strategic capability), I analysed the resources and competencies(Appendix 3) ,the value chain (Appendix 3),the Cultural Web(Appendix 5). To find out the influence of stakeholders on the company I applied Power/Interest to the company and finally analysis of strengths,weaknesses ,opportunities and threats to the company(SWOT Analysis-Appendix 7) provide with clear idea about the strategic position of M&S.
Through an internal environment analysis, companies can identify and understand their own unique resources, capabilities, and competencies that are required for their sustainable competitive advantage. Resources, capabilities, and core competencies are the foundation of competitive advantage. There is no competitive advantages are permanently sustainable in any companies, so they have to consist on their current advantages and develop new advantages by internally understanding and analyzing their resources and capabilities. Competitors have their own unique resources, capabilities, and core competencies to create values for their customers. Both tangible and intangible resources, which include individual, social and organizational phenomena, are combined to generate capabilities. In turn, company’s capabilities are used to build core competencies. Also, core competencies are as a source of competitive advantage for a company to win in the competitive market.
For transforming a short-run competitive advantage into a sustained competitive advantage we require resources that are heterogeneous in nature and not perfectly mobile. This translates into valuable resources that are neither perfectly imitable nor substitutable without great effort. If these conditions are fulfilled then the bundle of resources can sustain the firm's above average returns.