Identify, Analyze and Discuss Strategic Issues for Costa According to the Resource Based View (Rbv) and Its Core Competences.

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  • Topic: Asset, Whitbread, Costa Coffee
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  • Published : October 13, 2012
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Identify, analyze and discuss Strategic issues for Costa according to the Resource based view (RBV) and its core competences.

Because the past decades have witnessed the rise of ultra-competitive markets, companies have strived to find efficient ways to differentiate themselves from their competitors. Consequently, a growing interest was granted as to how firm resources should be managed in order to achieve temporary competitive advantage and even sustained competitive advantage. According to an article of software business :’The Resource-Based View (RBV) holds that firms can earn sustainable above average returns only if they have superior resources and those resources are protected by some form of isolating mechanism preventing their diffusion throughout industry’(http://www.swbcommunity.org/swbc/index.php/Article:_Resource_based_View). These firm resource deemed as “superior” can ‘include the assets, knowledge, information, capabilities, processes and firm attributes that enable the organization to formulate and implement their strategies effectively and efficiently’ (‘Sustainable competitive advantage or temporary competitive advantage’Tim O'Shannassy. Journal of Strategy and Management. Bingley: 2008. Vol. 1,). Costa coffee was first created in 1971 in London by the brothers Costa and it progressively expanded into the premier brand that it is to their current According to Datamonitor 360: ‘Fast-growing and well performing Costa business operations will drive the revenue growth for the company in the coming years’ (Datamonitor 360, (2008), Whitbread PLC, company overview). This statement leads us to the aim of this assignment; we will try to determine what the firm resources held by Costa coffee are and how they are utilized in order to confer Costa competitive advantage.

The coffee brewing industry is a relatively recent market in expansion with little differentiation between the main competitors. In spite of the fierce competition that...
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