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   1 Sustainability of a Competitive Advantage ã Sustainability of a competitive advantage is a function of: –the rate of core-competence obsolescence due to environmental changes, e.g., technological shifts–the availability of substitutes for the core competence–the imitability of the core competence, e.g., diffusion of an innovation–whether the firm is properly organized to capture value   2 External  and Internal  Analyses G   e  n  e  r  a  l        E   n   v    i   r  o   n   m  e   n   t GeneralEnvironment    G  e   n  e   r  a    l E   n  v  i   r  o  n  m  e  n  t      Sociocultural G    l    o  b   a  l     Technological     P  o   l   i   t   i  c  a   l   /    L  e  g   a   l    D  e  m  o  g   r  a  p     h   i  c  E   c  o  n  o  m  i   c   IndustryEnvironmentCompetitorEnvironment By studying the eternal environment, firms identify what they might choose to do (Structure>Conduct>Performance) !pportunities and threats   3 External  and Internal  Analyses By studying the firm s #internal$ capabilities % resources, firms identify what they can do (over time) &ni'ue resources , capabilities , and competencies #sustainable competitive advantage$   4  Internal Analysis (Resources, Capabilities) ã(ow do we effectively manage current core competencies while simultaneously developing new ones) (exploit/explore) ã(ow do we assemble bundles of resources, capabilities and core competencies to create value for customers)ã(ow do we learn to change rapidly)
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