Generally, industries with stronger competitive forces have higher profit potential
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A company can earn above-average returns only when the value…
A company can earn above-average returns only when the value it creates is less than the costs incurred to create that value
Apple has combined some of its tangible resources (such as f…
Apple has combined some of its tangible resources (such as financial resources and research laboratories) and intangible resources (such as scientists, engineers, and organizational routines) to complete research and development tasks to create a capability in R&D
The need to meet quarterly earnings results causes managers…
The need to meet quarterly earnings results causes managers to accurately examine the firm’s internal organization
The learning generated by making and correcting mistakes is…
The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies
Firms achieve strategic competitiveness and earn above-avera…
Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers
Resources, capabilities, and core competencies are the found…
Resources, capabilities, and core competencies are the foundation of competitive advantage
The value of tangible assets, such as the firm’s borrowing c…
The value of tangible assets, such as the firm’s borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value
Firms should seek to continually develop new core competenci…
Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit
Eavesdropping is an ethical way to obtain information about…
Eavesdropping is an ethical way to obtain information about competitors’ actions