![]() ![]() Traditional theories focused on leveraging external factors as a means to set your business apart. To put it simply, sustainable competitive advantage and business performance derive from developing strategic resources. ![]() This theory emerged in the early '90s and became popular due to Jay Barney's article "Firm Resources and Sustained Competitive Advantage." Its proponents state that organizations can use their key resources, assets and capabilities to gain a competitive edge. The resource-based view is based on the idea that a company's resources determine its success. Regardless of your industry or type of business, it's essential to identify your key resources and align them with your strategic goals. A startup competing against other new companies in emerging markets can leverage its financial, intellectual and human resources to gain a competitive edge. A real estate company, on the other hand, relies on physical resources. Highlight those that bring the most value to your small business and set you apart from your competitors.Ī product-driven business, for instance, relies on human and intellectual resources. Make a list and classify these tools and capabilities into tangible and intangible assets/intangible resources. Think about what you need to create, promote and sell your products or services. Not all resources are equally important, so you must identify your key resources and then seek ways to leverage them. Copyrights, trademarks and other intellectual resources can make it easier to attract investors, strengthen your market position and increase brand recognition, among other perks. A company's human capital, on the other hand, is often an invaluable resource. Most types of computers and other equipment can be easily replaced. Furthermore, they are not available to competitors and cannot be easily imitated or implemented by others.įor example, your office equipment isn't necessarily a strategic resource. These types of resources create value for an organization and may become a sustainable competitive advantage. ![]() The resource-based view theory revolves around a company's strategic resources, which are the building blocks of business growth. ![]()
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