Abstract

The development and defence of a firm's competitive advantage is the product of the cumulative development of a compelling set of organizational resources and harnessing them to a vision of the firm's potential. This difficult task must take place while simultaneously identifying current and potentially powerful future competitors. The case histories of The Body Shop, Walmart, Microsoft and Charles Schwab are used to develop a conceptual map that captures the two concepts of core capabilities and strategic intent to chart firms and their development over time. These two concepts are operationalized and applied to the auto industry to illustrate how this graphic representation of an industry and competitor movements improves the creation of strategic plans based on a superior image of the competitive domain.

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