Lecture 11: Services and the Resource-based View

Question 1

How can an enterprise determine unique resources and identify sources of (sustained) competitive advantage?

Answer 1

d

Question 2

When does a firm have competitive advantage?

Answer 2

it implements a value creating strategy not simultaneously being implemented by any current or potential competitors”.

Question 3

Define resources

Answer 3

Resources can be defined as skills, competencies and strategic assets

Question 4

Assets?

Answer 4

tangible/intangible assets - (ex. IT infrastructure: hardware and software)

Question 5

Capabilities?

Answer 5

Patterns of actions in the use of assets to create and produce - can include skills (manager) and processes (SDLC)

Question 6

Resource-based analysis

Answer 6

1. identify resources that are: valuable and rare

2. inimitable, non-substitutable and imperfectly mobile?

Question 7

Value

Answer 7

A resource has value when it enables a firm to implement strategies that improve efficiency and effectiveness to a higher extent than rivals

Question 8

rare

Answer 8

A resource is rare if it is not simultaneously available to a large number of firms

Question 9

Additional criteria for sustained competitive advantage (SCA)

Answer 9

Firms must be able to defend advantage against imitation
• A resource has low substitutability if there are few - or even any -
strategically equivalent resources that are rare and inimitable
• A resource is imperfectly mobile or non-tradable, i.e. it cannot be
transferred easily to another firm