Share
Explore BrainMass

Resource-Based View

The resource-based view is a model of competitive advantage that suggests that a firm can gain a sustainable competitive advantage by having resources, or a mix of resources, that are not easily replicable or transferred. If the resources your firm owns or has access to are not replicable, your firm will not be replaceable in the value chain. More importantly, if your firm controls a heterogenous mix of resources that are best suited for your business's value proposition, the likelihood that all of the resources can be duplicated is small.

A firm's key resources can provide a competitive advantage if they are valuable, rare, inimitable, and non-substitutable. These conditions are necessary (not merely sufficient) conditions for a sustained competitive advantage. That is, a firm's resources must have each of the four conditions, and the competitive advantage the firm receives from its resources is only as strong as its weakest link.

  1. Valuable: Are the resources best-suited for creating the type of product or service your firm provides? What business processes does your firm employ to provide their products or services? Do these resources add value or reduce costs in these processes?
  2. Rare: The more scarce a resource, the more valuable it is.
  3. Inimitable: Resources that cannot be copied can be a source of competitive advantage. Resources become more inimitable in one way. For one, if a resource is part of a bundle of resources that the firm employs, the likelihood that the bundle of resources can be duplicated is low. For example, the probability of copying a resource perfectly is less than one (maybe it's 90%). Therefore, the more resources the firm employs together, the likelihood that the whole system of resources will be copied reduces exponentially (0.9 x 0.9 = 0.81%, 0.9 x 0.9 x 0.9 x 0.9 = 0.66%). Secondly, the more knowledge-based or socially complex the resource is, the less likely it is to be imitated.
  4. Non-substitutable: Resources must be rare and inimitable. They must also be valuable, that is, the unique set of resources a firm employees to create, produce, sell and distribute its products and services must create value - they must be suited for the processes in which they are employed, either saving costs, or adding value to the end product or service. The fourth dimension is non-substitutable. That is, the mix of resources the firm employs must be the BEST mix of resources for delivering the firm's products or services. If another mix of resources could equally or better support the operations of the firm, and another company could obtain those resources, the firm will not have a sustainable competitive advantage.

 

Annotated Bibliography Global Sourcing

Submit the Annotated Outline assignment. In this assignment, you will engage in scholarly inquiry to analyze evidence-based research and scholarly literature related to your selected topic. Locate at least three peer-reviewed sources that provide different evidence-based perspectives on the topic you identified. Identify 2-3 m

McDonald's: From Big Mac to P'tit Plaisir

1.Read the McDonald's Case Study located in the Case Study section of the text. 2.Write a summary of the case study. In your summary, be sure to discuss the external environment in which McDonald's operates and how the environment influences its strategy. 3.Note: a summary is a comprehensive and yet brief form of the case stud

20 Page MBA Capstone Project Example using Target Stores Inc.

Proposal Content and Format for Project (MBA CAPSTONE) Introduction - In this section, identify the organization and history of the company. · Target organization. (Target Store Example) · Nature of the project. (Development of an intervention, such as a workshop or training activity that is broad-

Corporate Social Responsibility at Coca Cola

Option 2: Workplace-Based Field Research Paper B on the Evaluation of Your Organization's Commitment to People and the Environment Purpose: For this option you will be required to gather first-hand knowledge in order to analyze the strengths and weaknesses of discretionary activities taken by your firm as they relate to the dom

Defensive and Offensive Strategies

Need a personal opinion on survival in the international environment that requires the skillful use of defensive and offensive strategies. Identify some offensive strategies that a U.S. multinational retail giant may use in attacking multinational rivals. Why do you think it is effective? 180 plus words.

Information And Competitive Advantage

How can information itself provide a competitive advantage to an organization? Please include at least two examples. For each example, describe in associated risk. Using the resource-based view as describe how information technology might be used to provide and sustain a winning position for an online university

key challenges facing strategic HR management

Identify and analyse the key challenges facing strategic HR management. Evaluate the use of the 'black box' role in describing the strategic logic between a firm's HR architecture, its subsequent performance, and the importance of strategy implementation in this relationship. Finally, analyse the significance of a differentiated

Sustaining Competitive Advantage

Please provide some help preparing this paper on the topic of 'Sustaining Competitive Advantage'. Requirements: Prepare a white paper exploring the topic in further detail or from a different perspective than the paragraph provided below. Provide possible solutions for the issue you are discussing, and include specifics as t

Strategies for Business Growth

I need help in responding to the following questions, relative to a new, one-owner, etiquette and image consulting corporation that operates only in the United States for now: Address your strategies for growth for the business. 1. Describe and justify your penetration strategy or explain why you do not have one. 2. Descr

Strategic Management Final Questions

Describe the strategic management process. What benefits can organizations realize through managing strategically? Question 2 Contrast and compare the differences and similarities of how for profit, not for profit, small and entrepreneurial organizations use and benefit from managing strategically and from developing and im

Marketing

How might a firm's resources limit its search for opportunities? Cite two specific examples for two specific resources. TEXT BOOK:Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2010). Essentials of marketing (12th ed.). New York, NY: McGraw-Hill/Irwin.

Leadership

Analyse Professor Abell's arguments for seeing strategy and leadership as increasingly congruent, and evaluate his specification of 'the new leader'. The article was written in 2005. Would changes in the business environment since then strengthen or weaken the argument for seeing leadership as the key to strategy? Explain your a

"The Third Leg in the Strategy 'Tripod'"

Evaluate the case made in the article for 'The Third Leg in the Strategy "Tripod",' with particular reference to the effectiveness of the four cases offered in supporting the central argument of this article. Peng, M.W., Wang, D.Y.L. & Jiang, Y. (2008) 'An institution-based view of international business strategy: A focus on

Assessment of Verizon Wireless Labor Market

Detail the results of your assessment of the labor market from which Verizon Wireless draws candidates for open positions. What is the population? What are the demographics of the population? Levels of education? How much training may be required to prepare new workers drawn from this pool for positions in the firm? Use regi

Evaluate the case made in the article, 'The Third Leg in the Stategy Tripod'

Evaluate the case made in the article, 'The Third Leg in the Stategy Tripod', with particular reference to the effectiveness of the four cases offered in the central supporting article - An Institution-based view of International business strategy: a focus on emerging economies - by Mike W Wang, Denis YL Wang and YI Jiang He

Resource-based, internal analysis, life cycle, benchmarking

Just a few sentences answering these questions please. With a reference or two. 1. Compare and contrast the resource-based, the functional, and value-chain approach to internal analysis - pros and cons of each? 2. How does internal analysis fit within a SWOT approach? 3. How does a firm's industry life cycle impact st

Strategic Management in Dynamic Environments

Submit a memo in which you outline the key resources of a cell phone company. In the memo, you must also explain how the key resources are linked to competitiveness. Address the following in your memo: * Discuss the role and value of resources and capabilities in strategy formulation for the featured cell phone company. *

Discussing EVA for an Entity using Tangible/Intangible Resources

Step One: RBV is based on the concept of the creation of economic rent though the company's distinctive capabilities. Thus, the first step is to find a way to value a firm's economic rent or Economic Value Added (EVA). A firm's EVA is the amount of capital it generates above and beyond the cost of doing business. Find out how E

- Main theme/purpose The purpose of this article is to review the logistical aspect of planning a major sports event. Various speculators and theorists developed profound statements as to the importance of planning a major event. Some researchers believe that planning a major sports event would bring unwanted attention to a region whereas other theorists suggest that planning a major sporting event would strengthen the country's economy by bringing much needed exposure for travel and tourism. Although 'elite' spectator-driven sporting events renders significant benefits for all parties involved (i.e. community and various stakeholders with common interests), the ability to plan and prepare for such an event has a series of difficult challenges which include; promoting, comprehensive research geared specifically to identifying the target audience, establishing the type of visitors the sporting event will attract, as well as the financial obligations needed to fulfill expectations. There are several factors to consider when planning an event which is the sole purpose of this article to discover what is entailed, to discover the market potential, the impact effective event planning will have on a country's main objective, and to predict the future demand of the specified sporting event.

- Main theme/purpose The purpose of this article is to review the logistical aspect of planning a major sports event. Various speculators and theorists developed profound statements as to the importance of planning a major event. Some researchers believe that planning a major sports event would bring unwanted attention to

A Detailed Discussion on Strategic Planning

Please help with the following problem. Compare and contrast the theory of "the resource based view" (RBV) of strategy with theories and models that look to external forces and factors for an explanation of a firm's strategic capability and intent.

Design and usage of information technology for business owners

Discussion Topic: Information Systems in Business Settings Question 1: When considering the impact of the information age on business, what are some issues business owners should address in deciding to use information technology. Would the type of business determine the appropriate information system? What are some typ