Internal analysis for IKEA 1. A good place to start with an internal firm analysis is to catalog the assets a firm has. Describe the key intangible assets. 2. Now extend beyond the asset base and use the VRIO framework to identify the competitive position held by your firm. Which, if any, of these resources are helpful in sustaining the firm’s competitive advantage? 3. Identify the core competencies that are at the heart of the firm’s competitive advantage. (Remember, a firm will have only one, or at most a few, core competencies, by definition.) 4. Perform a SWOT analysis for your firm. Remember that strengths and weaknesses (S, W) are internal to the firm, and opportunities and threats (O, T) are external. Prioritize the strategic actions that you would recommend to your firm. Refer to the Implications for Strategic Leaders section on how to conduct a SWOT analysis and provide recommendations building from strategic alternatives.