Case Study: Resource-Based View of Competitive Advantage

Pages: 4 (1172 words) Published: August 26, 2013
Case study 1: Resource based view of competitive Advantage

1. 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 competitive 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 capabilitiethat is rare and difficult to imitate.

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. Thus, it is the ability to offer superior customer value on an enduring or consistent basis, a situation in which competitors are unable to easily imitate the firm’s capacity for value creation. Acquiring and preserving competitive advantage and superior performance are a function of the resources and capabilities brought to the competition. 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 their 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...
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