ch 4 Flashcards
What is RBV?
Resource-Based View - a model for fims to achieve sustainable competitive advantages by utilizing unique resources and capabilities that are valuable, rare, difficult to imitate and organized to capture value
What is the VRIO framework?
Vlue, Rarity, Imitability, Organization
How does a resource meet the value criterion in VRIO?
It helps the firm capitalize on opportunities or neautralize threats, leading to increased revenues or decreased costs
What does the Rarity aspect in VRIO imply?
A resource is rare if only a few firms possess it, proventing competitive parity
Why is the Organization element essential in VRIO?
Even valuable, rare, and inimitable resources won’t provide a competitive advantage unless the firm has the right processes and structure to exploit them
What is the purpose of Value Chain Analysis?
It helps firms assess how they can achieve competitive advantages by evaluating the effectiveness of their primary and secondary activities
What are the five primary activities in the value chain?
Inbound logistics, operations, outbound logistics, marketing and sales, and service .
What is the difference between tangible and intangible resources
Tangible resources are physical (e.g., equipment, cash), while intangible resources include elements like brand reputation and employee knowledge
What are dynamic capabilities?
The ability of a firm to continuously adapt and create new capabilities to meet changing environmental demands (e.g., Coca-Cola’s brand innovations)
How can intellectual property function as a strategic resource?
Through patents, trademarks, and copyrights that protect a firm’s innovations from competitors
