Question: What internal assets and resources does Lime have that allows it to implement its chosen strategy? If one firm intends to outperform others by a
What internal assets and resources does Lime have that allows it to implement its chosen strategy?
If one firm intends to outperform others by a wide margin over a long period of time, its important to figure out how this could be accomplished. The answer may lie in how that firm arranges its activities and creates unique bundles of resources that allow it to sustain a competitive advantage. Students should assess the relationships between the elements in Limes value chain.
Remember, value chain analysis is a strategic analysis of an organization that uses valuecreating activities. Value is the amount that buyers are willing to pay for what a firm provides them and is measured by total revenue, a reflection of the price a firms product commands, and the quantity it can sell. A firm is profitable when the value it receives exceeds the total costs involved in creating its product or service. Creating value for buyers that exceeds the costs of production ie margin is a key concept used in analyzing a firms competitive position.
Every activity should add value. Take a look at Exhibit to see the value chain activities. Based on the relationships between these elements how can Lime make a choice of how to proceed to craft a competitive advantage?
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