Core Competencies and Competitive Advantage for Eco Entrepreneurship

1
Core Competencies and Competitive Advantage for
Eco Entrepreneurship

• We have focused on the external factors affecting
  competitive advantage1) identifying the relevant
  market 2) analyzing competitors 3) examining
  other external factorsmacro economic, social,
  tax/regulatory, etc 4) identifying the target
  market as precisely as possible.
• We now turn to internal factors affecting
  competitive advantage.
• Resources capabilities core
• competencies competitive advantage

2
Core Competencies and Competitive Advantage for
Eco Entrepreneurship

• Resources tangible and intangible inputs into
  the firms production labor, capital, location
  (tangible) trust, managerial capabilities, links
  to market, scientific capabilities, synergies,
  reputation, brand (intangible).
• We want to identify those resources that are
• Valuable (to the market)
• Rare (not held by competitors)
• Costly to imitate (difficult for competitors to
  copy)
• Non substitutable (required)
• These resources then become capabilities that are
  core competencies contributing to a competitive
  advantage.

3
Core Competencies and Competitive Advantage for
Eco Entrepreneurship

• Intangible resources are the most likely to be
  capabilities. Why?
• Challenge is to identify the resources that the
  venture needs to launch and produce goods or
  services and then to further identify those that
  are core capabilities.
• How can you do this?
• First must decide if they are valuable to the
  firm and the consumer.
• Value chain analysis for the firm and for the
  target market.
• Map the value added in each segment of production
  with potential value to the client.
• Which resources are required?

4
Core Competencies and Competitive Advantage for
Eco Entrepreneurship

• Then decide if the resources are rare
  (competitors do not have them)
• If they are difficult to duplicate
• If they are non substitutable
• Then the value chain identification of key
  resources has directed you to those that are core
  competencies.

5
Core Competencies and Competitive Advantage for
Eco Entrepreneurship Value Chain for Green Sun

• Inbound logistics (top quality)
• Locate and order panels, installers
• Locate financiers and tax credits, lease
  financing
• Operations (stable prices, lower bills)
• PPA implemented, roof leased, panels installed
• Electricity generated and sold to customer
• Developer fee
• Outbound logistics (turnkey operations, no
  management issues)
• Ship and install panels, project manager
• Marketing and Sales (Green PR)
• Locate customers, relationship driven, continuous
  market research
• Service (insure reliability for 15 years)
• Panels, generator

6
Core Competencies and Competitive Advantage for
Eco Entrepreneurship

• Examine Green Sun Business Plan to see how that
  group addressed these issues.
• Monday, March 3Teams to present their core
  competencies and value chain analyses.