The resource based view analysis

Although scholars debate the precise categories of competitive positions that are used, there is general agreement, within the literature, that the resource-based view is much more flexible than Porter's prescriptive approach to strategy formulation. In short resources can be considered as inputs that facilitate the organization to perform its activities.

Information technology and sustained competitive advantage: Before I continue, if you are interested in this topic, definitely take a look at the book titled Managing Knowledge for Sustained Competitive Advantage: If NO, ask this question again for a different capability or resource.

Examples of resources include: Firm resources and sustained competitive advantage. Only the firm that is capable to exploit the valuable, rare and imitable resources can achieve sustained competitive advantage. Apple competes with Samsung in tablets and smartphones markets, where Apple sells its products at much higher prices and, as a result, reaps higher profit margins.

Intangible assets are everything else that has no physical presence but can still be owned by the company. Resources Resources of the firm can include all assets, capabilities, organizational processes, firm attributes, information and knowledge.

RBV is an approach to achieving competitive advantage that emerged in s and s, after the major works published by Wernerfelt, B. The resources that cannot meet this condition, lead to competitive disadvantage.

Resource Based View - The VRIN Characteristics

There is no advantage of possessing a resource if it does not add or enhance value of the firm; 2. This comparative advantage enables firms to produce marketing offerings that are either a perceived as having superior value or b can be produced at lower costs. Objectives Companies can build competitive advantages in one of two general ways through value chain analysis.

The competition between Apple Inc. Land, buildings, machinery, equipment and capital — all these assets are tangible. Physical resources can easily be bought in the market so they confer little advantage to the companies in the long run because rivals can soon acquire the identical assets.

Resource diversity also called resource heterogeneity pertains to whether a firm owns a resource or capability that is also owned by numerous other competing firms, then that resource cannot provide a competitive advantage.

Resource based view of firm 1. Strategic Management Brief History Of S.M. Industrial Organization Resource Based View of the firm and its Model Literature. This theory, called the Resource Based View (RBV), suggests that the method in which resources are applied within a firm can create a competitive advantage (Barney, ; Mata, Fuerst, & Barney, ; Peteraf, ; Wernerfert, ).

The resource based view of firms is based on two main assumptions: resource diversity and resource immobility (Barney, ; Mata et al., ). Both Barney, and Collis and Montgomery believe that there is a “complementarity” between environmental models of competitive advantage (e.g.: a SWOT analysis) and the resource-based view.

Resource Based View (RBV) of Competitive Advantage: An Overview

A SWOT analysis will highlight a firm’s resources that will exploit opportunities and neutralize threats. The resource-based view (RBV) is a model that sees resources as key to superior firm performance.

Resource-based view

If a resource exhibits VRIO attributes, the resource enables the. The resource-based view (RBV) is a way of viewing the firm and in turn of approaching strategy. Resources of the firm can include all assets, capabilities, organizational processes, firm attributes, information and knowledge.


Resource based view (RBV) focuses on the concept of difficult-to-imitate attributes of the firm as sources of superior performance and competitive advantage.

The resource based view analysis
Rated 4/5 based on 45 review
Competitive Advantage and the Resource Based View of the Firm - Eric D. Brown