. What are the company’s resource strengths and weaknesses? The purpose of this tool is to assess the competitive values of the company’s resources. The four tests of
competitive value are: Is the resource hard to copy? How long does the resource last? Is the resource really competitively superior? Can the resource be trumped by a rival’s resources/capabilities?
If you can answer the first three questions in the affirmative and the last question with a no, then decide if
the resource is the basis for a competitive advantage. As a minimum, for each of the resource types listed
below, assess the competitive value of each resource.
To address the resource strengths and weaknesses question, you must answer all four questions for each
of the criteria. For example, answer all four questions for proprietary technology. Then answer all four
questions for advertising and promotion. Continue with the same approach for each of the criteria. You
may also provide solid logic and analysis in your responses. Why are you answering yes or no to each of
the four questions? After completing your analysis, you can determine if the company under analysis has
CAs or strengths.
Please identify all of competitive advantages. All of the CAs are strengths. A company may have a
resource strength that is not a CA. Identify all of the company’s strengths and weaknesses.
Criteria
Please note the
following criteria are
examples to get you
started. You should add
the applicable resources
for each category.
Skills and expertise Proprietary
technology advertising and
promotion product innovation ability to improve
production
processes technological
know-how
Physical assets plant capacity plant and
equipment age and
technological
capabilities plant and retail
location access to Hard to copy? Last long? Superior? Can be trumped? distribution
channels wide geographic
coverage global distribution
capability
Human assets Superior
intellectual capital
