buss349 coca cola This week, we turn our attention to inside the firm. One of the key messages is that a firm's ability to gain and sustain competitive advantage is partly driven by core competenciesunique strengths that are embedded deep within a firm. Core competencies allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost. The resource-based view of the firm and the VRIO framework provide an analytical model that allows us to assess resources, capabilities, and competencies and their potential for creating a sustainable competitive advantage. For example, Starbucks' resource of exclusive supply contracts with superior coffee growers, combined with Starbucks' capabilities to roast coffee and to train highly skilled baristas, enables them to create a core competence of superior tasting coffee. By using internal analysis tools, managers can gain the insight of evaluating a firm's current situation and seek to update the firm's strategic fit with the environment