Organizational Capability

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Core Competency Assessment

Organizational Capability

Using what value chain activities or resources

How is Value Created?

Why Rare?

Why Inimitable?

Why non-substitutable?

VRIO*

Implications for Competitiveness

Core Competency?

Creativity

Forward looking managers such as Jenna Lyons.

The manager uses her experience in the apparel industry to come up with intriguing designs

The experience of Jenna is limited to her as an individual and determines her creativity

The only way to gain the creativity is by poaching the manager.

It is hard for competitors to predict the next big idea from the company.

☐V

☐R

☐I

☐O

☐Competitive Disadvantage

☐Competitive Parity

☐Temporary Competitive Advantage

☐Sustainable Competitive Advantage

☐ Yes

☐No

Procurement

Use of trading companies and manufacturers.

The use of top ten vendors to supply 46% of JCrew’s merchandise.

The traders ensure on time deliveries.

Commissions are paid to the vendors to win their loyalty.

It is unprofessional for the vendors to share the secrets of JCrews supply strategy with competitors.

☐V

☐R

☐I

☐O

☐Competitive Disadvantage

☐Competitive Parity

☐Temporary Competitive Advantage

☐Sustainable Competitive Advantage

☐ Yes

☐No

Brand image

Use of traditional styles

Through consistent production techniques

The company has a secret fabric mixture to create comfort for the customers

Only the company employees know the secret for the traditional styles

The traditional style is a brand secret to the company.

☐V

☐R

☐I

☐O

☐ Competitive Disadvantage

☐Competitive Parity

☐Temporary Competitive Advantage

☐Sustainable Competitive Advantage

☐ Yes

☐No

Low cost production

High technical production processes.

Constant management of the processes to ensure consistency in quality at minimization of cost.

The company’s production process are specific to the firm.

Unless the employees share the secret, it is hard for competitors to access the technology.

The specifications of the technology are limited to JCrew.

☐V

☐R

☐I

☐O

☐ Competitive Disadvantage

☐Competitive Parity

☐Temporary Competitive Advantage

☐Sustainable Competitive Advantage

☐ Yes

☐No

*Checkmarks by V, R, I or O indicate the Value,Rarity,Inimitabilityand Non-Substitutability of an advantage in the market place.

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