Read the summary and the most important questions on Trying to Become a Different Type of Company: Dynamic Capability at Smith Corona

• 1 Introduction

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• Why is organizational renewal important?

  
  It is important to survive environmental changes, which involves changing organizational resources and competences over time, often accompanied by a change in the organization’s products. 

• What is dynamic capability?

  The ability of a firm to renew itself in the face of a changing environment by changing its set of resources. 

• What does the dynamic capability theory state?

  Some firms thrive in the face of environmental changes because they have the ability to change their resources. 

• In which various modes can changes in the firm's set of resources be achieved?

  1. Leveraging
     
  2. Creating 
     
  3. Accessing
     
  4. Releasing
     

• What is a resource?

  A tangible or intangible asset that the firm owns, control, or has access to and from which it potentially derives rents.  

• What are fungible resources?

  Amenable resources to multiple applications.

• 2 Findings

• 2.1 Leveraging existing resources

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• What are the benefits of leveraging existing resources?

  
  Enables a company to renew itself by drawing on its existing resources, and applying them to new uses, such as new product categories.

• What did Smith Corona leverage?

  
  They tried to leverage its brand, distribution, and customer understandings, but these resources did not add value to the new products; Their brand was not fungible.

• Which 3 factors impact fungibility?

  
  

  1. Product category associations
     
  2. Benefit associations
     
  3. Usage associations
     

• What is the premise from brand extension?

  The premise for extending an existing brand name is that customers use their beliefs about the brand to draw inferences about an extension product. Brand associations are transferred to the extension product.