Internal analysis helps companies understand why differences in firm performance exist even within the same industry. Companies that compete in the same industry face similar external opportunities and threats; therefore, any observable performance difference must be found inside the firm. In this module you will study the internal resources, capabilities, core competencies, and value chain of the company your Team is assigned for the project.
1. A good place to start with an internal firm analysis is to catalog the assets a firm has. List the firm’s tangible assets. Then make a separate list of its intangible assets.
2. Now extend beyond the asset base and use the VRIO framework to identify the competitive position held by your firm. Which, if any, of these resources are helpful in sustaining the firm’s competitive advantage