Chapter 3

Question 1

Resource-based view RBV

Answer 1

Resource Heterogeneity- Not all firms have the same resources
Resource Immobility- Resources are not always mobile, can be costly to imitate

Question 2

VRIO

Answer 2

Valuable
Rare
Costly to Imitate
Organized to exploit

Resource level not company level. Coke logo or Eharmony algorithm not the whole company

Question 3

VRIO

Answer 3

Question of Rarity- If a resource is not rare, then no competitive advantage and no above normal profits. The resource must be rare enough the perfect competition has not set in. There may be other firms that possess the resource, but still few enough that there is scarcity