Resources and Capabilities Assessment of Chipotle
Jiacheng Mai
Capabilities_Resources_Assessment_Framework.pptxStrategic Importance
Relative Strength
Low
Low
High
High
Superfluous Strengths
Key Strengths
Key Weaknesses
Zone of Irrelevance
The Framework for Appraising
Resources and Capabilities
APPRAISING RESOURCES AND CAPABILITIES
Find out the resources and capabilities that are important for firms in that industry to succeed.
Find the idiosyncratic resources and capabilities that a focal firm may have.
Horizontal axis (x axis) is about the importance of a resource/capability to firms in a focal industry. (Strategic Importance)
Vertical axis (y axis ) is about the relative adequacy of a focal firm on a specific resource and capability. (Relative Strength)
Scale (0-10)
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C1
Strategic Importance
Relative Strength
Low
Low
High
High
0
Superfluous
Strengths
Key Strengths
Key Weaknesses
Inconsequential Weaknesses
Deriving Strategy Recommendations from Resource/Capability Analysis: Icelandair Group
Fleet
Brand
Location
Route network
Landing slots
General management
Human resources
Cabin services
Flight operations
Marketing
Financial resources
Maintenance
DEVELOPING STRATEGY IMPLICATIONS
STRATEGY:
Iceland location means small domestic market and limited appeal as international hub.
Hence, airline must utilize its operational, service, and HR strengths to offset these disadvantages.
Core strategy:
Collaborate to develop Iceland as a year-round tourist destination
Develop vacation destinations for domestic customers
Use to low fares and superior customer experience to compete on North Atlantic routes
Use general management strengths for flexible responses to emerging opportunities, e.g. new routes
