strategic group map of southwest airlines

Strategic group map of southwest airlines software#

Apple, using a different business model focused on their strategic resources, has succeeded with years of record profits. Many computer companies have struggled to make money with razor-thin profit margins. It didn’t hurt to have Steve Jobs, a charismatic, innovative thinker, as their CEO for many years.

Strategic group map of southwest airlines software#

Thus an organization cannot hope to create an enduring competitive advantage around common resources.Ī strategic resource is an asset that is valuable, rare, difficult to imitate, and nonsubstitutable. Apple has many strategic resources, including their proprietary software and hardware platforms, which have evolved from numerous innovations and improvements over literally decades the Apple store many aspects of the overall buying experience including price and a culture of innovation. Resources such as cash and vehicles are valuable, of course, but an organization’s competitors can readily acquire them. When analyzing organizations, however, common resources such as cash and vehicles are not considered to be strategic resources. Tangible goods such as one’s car and home are also vital resources. To most individuals, cash is an important resource. It is important to distinguish strategic resourcesfrom other resources. Resource-based theory can be confusing because the term resourcesis used in many different ways within everyday common language. These competitive advantages in turn can help the organization enjoy strong profits, especially over time.įigure 4.2 Resource-Based Theory: The Basics Resource-based theory contends that the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals ( Figure 4.2 “Resource-Based Theory: The Basics”) (Barney, 1991). Southwest Airlines provides an illustration of resource-based theory in action. Know the elements of the marketing mix.įour Characteristics of Strategic Resources.Be able to explain the difference between tangible and intangible resources.Understand the difference between resources and capabilities.Define the four characteristics of resources that lead to sustained competitive advantage as articulated by the resource-based theory of the firm.