Strategic Management Chapter 3

Which of the following statements is False?

The Resource Based Model does not require a strategic manager to perform an environmental analysis.

In the Value Chain Analysis, which of the following firm activities is a support functions?

Information systems

"Apple's "iSTREAM" went live this week, casting a shadow over the future of original online content streamers — and of two relatively young companies called Netflix and Hulu. Buoyed by strong iPhone and iPad sales as well as 100 billion investment in Hollywood movie studios, Apple iSTREAM allows users to have instant access to thousands of original TV shows as well as movies with their iPhones and iPads online. The company says the new service will make online streaming affordable and highly customized based on consumer's online behavior on their iPhones and iPads. This poses a bit of a challenge for Netflix and Hulu, which also aim to make online streaming more customized and valuable experience—but by consolidating user preferences of past shows. "I'd be very surprised if those guys didn't feel like a tornado just entered their world," said Pinoccio Altzman, chief product officer at WeShow, an online TV programming-design company in Silicon Valley."

Apple has successfully imitated these companies' capabilities in online streaming via substitution

For 110 years Hollywood studios made their money producing full length movies and screening them through movie theatres. Now they must be in the business of producing TV shows with lengthy seasons for online streaming services, such as Netflix and Hulu. They no longer can survive with sole reliance on full length single episode movies screened through traditional movie theatres—they're now calling themselves online "entertainment" creators, just in case all those predictions about the end of traditional movie theatre viewership come true. At stake is an entertainment streaming service market that Hollywood analysts believes is worth $10.2 trillion, a sum that makes you wonder why it took the movie studios so long to go after it." According to the excerpt above, which of the following capabilities of Hollywood studio firms has recently gained significant importance in their pursuit of sustainable competitive advantage in their core business?

Capability to produce lengthy shows with multiple seasons`

Under the Resource-Based View, which of the following are considered tangible resources

Labor, capital, land

For a firm to achieve competitive advantage, capability must meet all of the below characteristics except:

Organized to capture value

At the time TJ MAX and Ross had started challenging traditional retailers industry. Macy's, JC Penny, and Sears tried to counter the threat it posed by imitating the direct business processes of these stores. They widened their brand inventory, improved their online websites, and even offered customers an option to order online and pick up in stores instantly. While they made headway with their new strategy, they were bleeding money on their stores which all became loss leaders - some of them reported average threefold traffic drop. The capability of Macy's, JC Penny, and Sears to offer high variety of top brands through stores that did not help these companies to successfully imitate TJ MAX and Ross could be attributed to:

Social complexity

Blackberry, a company that was deemed as the Apple of 2000s, failed to capitalize on its superior mobile phone manufacturing and design capability, as evidenced by the company's continued reliance on the touch keyboard smartphone business in both domestic and international markets throughout 2000s. Meanwhile, Samsung emphasized investment into touch screen phone technology, which proved to be the right strategy in successfully positioning the firm for the 21st century. A strategist applying the core competence framework to the Blackberry case will realize that Blackberry failed to generate returns from its mobile phone manufacturing expertise, primarily because the capability did not meet which of following criteria?

valuable