Internal Analysis Resources, Capabilities and Core Competencies Summary


InternalAnalysis: Resources, Capabilities and Core Competencies

Thekey facts in the story: the story focuses on a company calledBioBridge that specializes in research in regenerative medicine. Theexpanding market for regenerative medicine puts pressure of thecompany to grow and increase its revenue streams. BioBridge choosesconsolidation of its units and acquisitions as one way of increasingits resource-base, improve capabilities, and align this with corecompetencies.

Thekey concepts addressed in the covered news article: The main conceptsaddressed in the article are resources, capabilities, and corecompetencies. The concepts are the prerequisites that any firm mustpossess for it to achieve growth. Innovation entails bringing thethree factors into a firm’s focus.

Analysisof the firm’s strategy

Theanalysis reveals that the BioBridge is on the right track ofachieving its growth objectives. Acquisitions and consolidationwill, indeed, expand its resource base. Having more skilled employeesand defined unit role improves its capabilities because there willsufficient resources channeled toward deriving the best from its corecompetencies.

InternalAnalysis: Resources, Capabilities and Core Competencies

Keyfacts of the story

  • The story is about BioBridge, Texan company that had first, acquired a new name as part of its rebranding exercise, and secondly, adopted the growth and expansion strategy to enhance its resource base, industry capabilities, and core competencies

  • The growth strategy involved bringing company’s subsidiaries under one management structure while also widening the scope of its assets.

  • The CEO states that the new plan is one of way through which the company seeks to generate more revenues so that it can increase the company’s capability to have quality research in regenerative research. With operating revenue of $164.2 million, Biobridge’s officials anticipate a resultant growth in revenues of up to $230 million.

  • The internal changes also focus on doing away with duplicated services so that the consolidated units can be streamlined towards executing within their core competencies

  • More recruitments of research and management experts is also part of the major strategies to enhance growth

  • For purposes of expanding its core capabilities, BioBridge will also take over other smaller companies

Theconcepts that the report relates to

Thereare three concepts in the above story that directly relates to thestudy at hand: resources, capabilities, and core competencies. Firstly, BioBridge realized that operating different units underdifferent names was straining the company’s resources, duplicatingservices, inhibiting research because no single unit concentratedinto getting the best out of a core competency. Secondly, thecompany also realized that its capabilities in conducting effectiveand fruitful regenerative research lie in how much resources thatcompany commits to the core functions of each unit. Thus, the companyneeded to first identify the services that each unit can efficientlyproduce and allocate maximum resources for that single purpose. Thirdly, the company realized that investing in core competencies wasthe best way forward to avoid duplication of services to derive valueof the resources invested in research and production. Indeed,expansion through acquiring more talent, skills, and competencies islikely to improve Biobridge’s quest for more revenue streams thanbefore and also claiming the position of an industry leader inregenerative research.

Theanalysis of the firm’s strategy with regard to the topic

Thefacts in the story indicate that BioBridge is out to improve itsresource base. The impact of this strategy on the company’scapabilities and core competencies is of great concern. The decisionto change the name of the primary company possibly rebrands it to fitthe new aspirations come with the changes underway. Technology andhigh skilled labor play a central role in research firms such asBioBridge. Consolidating its units and acquiring other companies willincrease Biobridge’s access to and reconfiguration of uniqueresources(Smith, 2008). The possible acquisition and consolidationmotive is to acquire more resources and/or specialized knowledge thatwill spearhead the company into meeting its long-term goals. Now thatan improved resource base leads to improved production capabilitiesand an enhancement of core competencies, BioBridge may as wellacquire a new market position vi-a-vis its competitors in theregenerative research market. Resources, capabilities, and corecompetencies are strategic issues that every company needs to grow. While a company may invest much of its resources in innovations, thedefining step is to effectively align resources to the capabilitiesand core competencies of the company. Therefore, an internal analysisideally reveals the capabilities and core competencies to necessitatestructural changes to that effect.


Bailey,S. (2013). BioBridge Global is pursuing a major growth plan forGenCure. SanAntonio Business Journal, Availableat

Smith,R. (2008). Aligning competencies, capabilities and resources.Research Technology Management: The Journal of the IndustrialResearch Institute, 1-11.,d.d24