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Case study resource based view of competitive

Case Study: Resource-Based View of Competitive Advantage

Hire Writer How specific would the identification of strategic capabilities need to be to permit them to be managed to achieve competitive advantage? Business strategy is all about competitive advantage. Businesses need strategies in order to ensure that resources are allocated in the most effective way.

A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being Implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy. Thus impotently advantage exists only after efforts to replicate that advantage have failed. It Is for this reason that organizations are focusing on methods and strategies that are difficult to imitate.

One of such methods and strategies is organizational learning through which an organization is capable of developing intellectual capital which include human capital, social capital and organizational capabilities is rare and difficult to imitate.

  • The first point we have seen that was Barneys fundamental concept of the RUB;
  • Not only can imitation be unlike, out It Is, Dates on overwhelming silently evidence, a rare Ana valuable viability;
  • Managers may be so wedded to these bases of success that they perceive them as strength of the organization and invent customer values around them;
  • We adopted the qualitative research method of exploratory descriptive character for the case study of a company that is one of the main multinationals that operate globally in the ingredients market for food industry, working in the business-to-business segment.

An organization should strive for unique characteristics in order to distinguish themselves from competitors in the eyes of the consumer for a long period of time. Aqualung and preserving competitive advantage and superior performance are a function of the resources and capableness brought to the competition.

What is a resource based view?

These capabilities, resulting from learning processes implies an improvement in response capacity through a broader understanding of the environment. From the resource-based view of organizations, managers need to consider whether heir organization has strategic capabilities to achieve and sustain competitive advantage.

To do so they need to consider how and to what extent it has capabilities which are: Valuable to buyers Rare Non substitutable If such capabilities for competitive advantage do not exist, the managers need to consider if they can be developed. Competitive advantage could also be based on rare competences: Three important points refer to the rarity of competences that might provide sustainable competitive advantage and they are: Rarity may depend on who owns the competence and how easily transferable it is.

Case Study: Resource-Based View of Competitive Advantage

For example, the competitive advantage of some professional service organizations is built around the competence of specific individuals.

If an organization is successful on the basis off unique set of competences, then competitors will seek to imitate or obtain those competences.

  1. Rarity may depend on who owns the competence and how easily transferable it is. Hire Writer How specific would the identification of strategic capabilities need to be to permit them to be managed to achieve competitive advantage?
  2. In art, early scholars labeled imitation mechanical and reproductive but eventually developed a more complex and sophisticated view of the phenomenon. The resources that cannot meet this condition, lead to competitive disadvantage.
  3. In this article, he describes why imitation is as valuable as innovation, and why imitation can and should be strategically conceived and systematically executed. Crucially, such responses must include not only the ability to prevent others from imitating you, but also the ability to imitate others, a capability that companies and business scholars have been neglecting for years.
  4. Como recuperar uma empresa. To do so they need to consider how and to what extent it has capabilities which are.
  5. We suggested that the main source of competitive advantage does not fall into the heterogeneity of resources and abilities per SE, but the heterogeneous perceptions of the entrepreneur. Different firms and different owners in these arrest will have different expectations about the future value of those resources, which create this imperfection.

So it may be necessary to consider other bases of sustainability. There is another danger of redundancy. Rare capabilities may be difficult to change and therefore damaging to the organization.

Managers may be so wedded to these bases of success that they perceive them as strength of the organization and invent customer values around them.

Do you agree that if it were possible to identify and manage such capabilities they would be imitated? When a product that has been in development for one year can be copied and brought to market in days, first mover advantage has lost it… Once stigmatize, imitation is now acceptable. In fact, to stay in the game and not fall behind, firms just imitate. In this article, he describes why imitation is as valuable as innovation, and why imitation can and should be strategically conceived and systematically executed.

Strategic agility requires an ability to respond to the innovations and pioneering moves of competitors. Crucially, such responses must include not only the ability to prevent others from imitating you, but also the ability to imitate others, a capability that companies and business scholars have been neglecting for years.

  • To do so they need to consider how and to what extent it has capabilities which are;
  • Therefore, RBV assumes that companies achieve competitive advantage by using their different bundles of resources.

To argue that imitation can be strategic seems almost blasphemous in the current scholarly climate. But I would venture that imitation can be strategic and should be part of the strategic repertoire of any agile firm. Contrary to popular belief, imitation can be unique if it consists of a set of activities that is distinct in its derivative form or combination architecture. Together with complementary capabilities and other organizational features such as corporate culture, imitation can be a differentiating factor and has the potential to deliver unique value.

Resource Based View

Not only can imitation be unlike, out It Is, Dates on overwhelming silently evidence, a rare Ana valuable viability. The supporting evidence comes from virtually every discipline.

In art, early scholars labeled imitation mechanical and reproductive but eventually developed a more complex and sophisticated view of the phenomenon. Is the RUB useful? The first point we have seen that was Barneys fundamental concept of the RUB. Because firstly, either the investment necessary to build up resources and the emend-side characteristics that ought to evaluate the value of these resources are exogenous to his framework.

  • Strategic Management Journal, 5 2 , 171-180;
  • Do you agree that if it were possible to identify and manage such capabilities they would be imitated?
  • Como recuperar uma empresa;
  • Therefore, different perceptions toward resources produce the possibility of a competitive advantage;
  • From the resource-based view of organizations, managers need to consider whether heir organization has strategic capabilities to achieve and sustain competitive advantage;
  • If organizations would have the same amount and mix of resources, they could not employ different strategies to outcompete each other.

Different firms and different owners in these arrest will have different expectations about the future value of those resources, which create this imperfection.

Therefore, different perceptions toward resources produce the possibility of a competitive advantage. This indicates that the abilities of the entrepreneur lie in discovering how to generate the real economic value with their resources in ways that others cannot anticipate. The second point considered was the relationship between resources, capabilities, and the abilities of the entrepreneur.

We suggested that the main source of competitive advantage does not fall into the heterogeneity of resources and abilities per SE, but the heterogeneous perceptions of the entrepreneur.

  1. The supporting evidence comes from virtually every discipline. The new RBS conceptual framework has been proposed by extending the central proposition of the RBV of the firm- that a firm must acquire and control valuable and non-substitutable resources and capabilities, into a multidisciplinary integration of both the institution based view IBV approach and the role of the contemporary state in providing resources and capabilities to firms.
  2. Value Creation Versus Value Capture.
  3. Journal of Management, 17, 99-121. According to RBV proponents, it is much more feasible to exploit external opportunities using existing resources in a new way rather than trying to acquire new skills for each different opportunity.
  4. It was found that the difficulty of perceiving the changes in the market caused by increased competition and product costs and the lack of knowledge of customer needs were highlighted as the causes of the decline, both attributed to the deficiency of the company's management in anticipating and adapting the strategies to changes in the external scenario.
  5. Journal of Management, Vol.

Finally, we suggest two ways for creating entrepreneurial rents, entrepreneurial arbitrage and entrepreneurial innovation. We concluded that the entrepreneurial innovation as an innovation to realize a future value system through the new combinations of resources in present time and space, while the arbitrage is merely exploiting the unexploited opportunities in the present existing market.