3. Internal Analysis
The group should perform a thorough internal analysis to understand the strengths and weaknesses
within the firm.
3.1 VRIN Analysis of Firm Resources
Identify the four most important resources of the firm and explain why they are the four most
important resources for this specific firm. Provide an analysis of each selected resource using the
VRIN framework. The resources can be tangible (e.g., financial assets, physical assets) or intangible
(e.g., brand reputation, technological patents, skilled workforce). This analysis helps determine the
firm’s sustainable competitive advantage by assessing if its resources are Valuable, Rare, Inimitable,
and Non-substitutable.
Valuable: Explain how each resource adds value to the firm. Does it enable the firm to exploit
opportunities or neutralize threats in the environment?
Rare: Assess the rarity of each resource. Is it controlled by a small number of competing firms, or is it
widely available?
Inimitable: Determine the imitability of each resource. Is it difficult for competitors to duplicate or
acquire?
Non-substitutable: Evaluate the substitutability of each resource. Are there comparable resources that
could be substituted by competitors with the same effect?
3.2 Competitive Strategy Analysis
Determine which of the five generic competitive strategies best describes the firm’s current strategic
approach. Consider factors such as the firm’s target market scope (broad vs. narrow) and the type of
competitive advantage it seeks (cost vs. differentiation). The five strategies are low-cost leadership,
broad differentiation, best-cost provider, focused differentiation, and focused low-cost.
In one paragraph, explain why the identified strategy is the most fitting for the firm. For this
justification, the group can use evidence from the firm’s operations, market positioning, and
competitive actions to support your analysis.
4. Metrics and Indicators
Developing and monitoring key performance indicators (KPIs) is essential for tracking the firm’s
strategic performance and aligning its operations with its vision and mission. In this section, the group
should identify and analyze specific metrics that will help gauge the firm’s success.
4.1 Identification of Metrics/KPIs: List five assessment metrics or KPIs that are critical for
measuring the firm’s overall performance. These can cover various areas, such as financial
performance, customer satisfaction, internal processes, and learning and growth.
Among these, identify two metrics that assess the firm’s success in achieving its vision and mission.
Explain how these metrics are aligned with the vision and mission statements.
4.2 Baseline Comparison and Goal Setting: For each selected metric, compare its current value with
the results from the previous year. This comparison will help identify trends, progress, or areas needing
improvement. Also, establish specific, measurable goals for each metric for the next two years. These
goals should be challenging yet achievable and support the firm’s strategic objectives
3 Internal Analysis
3.1 VRIN Analysis of Firm Resources
3.2 Competitive Strategy Analysis
4. Metrics and Indicators
4.1 Identification of Metrics/KPIs
4.2 Baseline Comparison
4.3 Goal setting for the next two years
