Relentless benchmarking and imitation is a successful strategy for competing against other firms.

Abstract

The effects of strategic order of entry on firms' performance have long been an issue in many areas of study. Past research efforts, however, have been concentrated mostly on first mover or early entrant advantages. To contribute to developing a theory of latecomer strategies, the authors investigate how latecomers compete successfully or even leapfrog early movers. They review previous studies on early mover advantages and disadvantages, and group the sources of such advantages or disadvantages into three areas: the firm, its market, and its competitors. The theoretical focus is how a firm converts the opportunities stemming from entry order into performance. The authors seek to confirm and extend relevant theories by examining how late entrants have caught up with incumbent industry leaders in the global semiconductor industry. On the basis of in-depth case analysis of three Japanese and three Korean semiconductor companies, they identify and categorize successful latecomer strategies into two types: strategies for overcoming latecomer disadvantages and strategies for utilizing latecomer advantages. Focusing, thin margin or loss bearing, and volume building form the essence of strategies for overcoming disadvantages, whereas odd timing, time compression, humanembodied technology transfer, benchmarking, technological leapfrogging, and resource leveraging form the essence of strategies for utilizing advantages. Because many companies in Asia have had to face the reality of being latecomers, the Asian perspectives are particularly useful for studying and explicating latecomer strategies.

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This unique journal scans the globe for new research that draws upon multiple disciplines or levels of analysis: achieves genuine integration of theory, data, and managment applications; and improves organizational functioning. Artificial Intelligence Communications Theory Economics History Hypercompetition Information Science Organization theory Political Science Psychology Strategic Management Systems Theory

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12.ON CULTURE:How can differences in values and traditions affect the success ofoffshoring?

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13. What is one common mistake that managers often make when evaluating theirfirm’s capabilities?

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14. What is the likely result of relentless imitation or benchmarking?

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15. Why is it a good idea for the VRIO framework to focus on future competition?

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IBUS 311 Chapter 4●One basic proposition of the resource-based view is that a firm consists of a bundle of productiveresources and capabilities○Resources are defined as “the tangible and intangible assets a firm uses to choose andimplement its strategies.”○Capabilities are defined as “a firm’s capacity to dynamically deploy resources,” suggestinga “dynamic capabilities” view that emphasizes a crucial distinction between resources andcapabilities.●For current and would-be managers, the key is to understand how these attributes help improvefirm performance, not to figure out whether they should be defined as resources or capabilities.○Therefore, in this book, we will use the terms “resources” and “capabilities”interchangeablyand often inparallel.In other words, capabilities are defined here thesame as resources.●One useful way is to separate the resources and capabilities into two categories: tangible andintangible.○Tangible resources and capabilities are assets that are observable and easily quantified.■They can be broadly organized in four categories: financial, physical, technological,and organizational resources and capabilities○By definition, intangible resources and capabilities are harder to observe and moredifficult (or even impossible) to■Examples of intangible assets include human, innovation, and reputationalresources and capabilities●If a firm is a bundle of resources and capabilities, how do they come together to add value? Avalue chain analysis allows us to answer this question.○most goods and services are produced through a chain of vertical activities (fromupstream to downstream) that add value—in short, a value chain. The value chain typicallyconsists of two areas: primary activities and support activities●Value chain analysis forces managers to think about firm resources and capabilities at a verymicro, activity-based level.○the key is to examine whether the firm has resources and capabilities to perform aparticularactivity in a manner superior to competitors—a process known as benchmarkingin SWOT analysis■If managers find that their firm’s particular activity is unsatisfactory, a decisionmodel can remedy the situation●In the first stage, managers ask, “Do we really need to perform this activity in-house?”■whether an activity is industry-specific or common across industries, and■whether this activity is proprietary (firm-specific) or not.○The answer is “No” when the activity is found with a great deal of commonality acrossindustries and little need for keeping it proprietary—known in the recent jargon as a highdegree of commoditization.○The answer may also be “No” if the activity is industry-specific but also with a high level ofcommoditization■the firm may want to outsource this activity, sell the unit involved, or lease the unit’sservices to other firms■

When an organization has a foreign supplier perform an activity for the firm that was previously performed by the firm itself this is called?

Which of the following statements is most likely to be true of best performing firms globally?

Are the tangible and intangible assets a firm uses to choose and implement its strategies?

Which of the following are examples of tangible resources?