In order to determine the core competences of Wal-Mart, I will first need to conduct an internal analysis of Wal-Mart before we could identify the core competences of the company. The internal analysis consist of a few components, first we will have to identify the resources available to the company, followed by the capabilities of the company. After which I will put the capabilities through a numbers of models to determine if they “fit the bill” to be considered as a core competency of Wal-Mart. I will start by first identifying the resources.
The resource available to any companies compromises of two component, the first being Tangible resources, …show more content…
I have identified the five capabilities above, before I can deduce that they are able to be classified under the core competences of the company, I will need to put them through a couple of test. First would be the “Four Criteria of Sustainable Advantages” model, followed by the “Value Chain Analysis”.
The first model consist of four components, they are: • Valuable capabilities – which help a firm neutralize threats or exploit opportunities • Rare capabilities – which are not possessed that few, if any, competitors possess • Costly-to-Imitate capabilities – that other firms cannot easily develop • Nonsubstitutable capabilities – that do not have strategic equivalent
By putting the capabilities stated above through the four