So, efficiency is important in the value chain of an organization. Constitutive elements of competitive advantage: I. Superior quality II. Superior efficiency III. Superior customer responsiveness IV. Superior Innovation Internal analysis is a component of the strategic planning process and focuses on examining a company's resources, capabilities and competencies. An internal analysis helps a company determine the company's strengths and weaknesses. For example, an internal analysis at Time Inc. found that although the company had strong, well-known brands such as Fortune, Money, Sports Illustrated and People (a strength) and strong reporting capabilities (another strength) , it suffered from a lack of editorial commitment to online publication (a weakness). To effectively identify strengths and weaknesses, business leaders must be able to compare their company's performance to that of their competitors and to the historical performance of the company itself. This will help them determine whether 1. They are more or less profitable 2. Their company strategies maximize the value created 3. Their cost structure does not match that of