Case Study

Sustain or expand?

Andy Weeger

Neu-Ulm University of Applied Sciences

January 2, 2025

Learning outcomes

After this session, you should have solidified your understanding of

• how to conduct an internal analysis to identify core competencies from a firm’s resources and capabilities;
• how external factors affect the company, and how industry structure affects competitive rivalry as well as the implications for strategy formation;
• how changes in external environment shape the competition dynamics a company faces; and
• the opportunities and challenges associated with global expansion.

Group work

• Form small groups to work on the following assignments.
• After each assignment, we discuss the findings in the plenum.
• Be prepared to present your insights.

Internal audit

List Sea Limited’s critical resources (tangible and intangible) as well as its capabilties.

Take 10 minutes to work on this task.

External audit

Summarize the main things that have affected and could affect Sea Limited’s ability to make a profit.

Use following categories: political/legal, economic/ecological, and sociocultural/technological

Take 10 minutes to work on this task.

Core competences

Core competencies are unique strengths that allow the company to differentiate its products and services from competitors.

Identify Sea Limited’s core competencies.

• Examine the resources and capabilities, macro-environmental factors, and the dynamics of their interplay.
• Summarise the key strengths of Sea Limited, considering the impact of both inside and outside factors.
• Apply the VRIO framework to analyze whether these strengths can deliver a sustained competitive advantage.

Take 10 minutes to work on this task.

Strategic options

Sea Limited is under pressure from shareholders to generate profit and deliver growth.

Use the SWOT framework to develop strategic options for Sea Limited.

Take 15 minutes to work on this task.

Q&A