Resource Based View

Question 1

Resource Based View

Answer 1

• Tool used for an internal analysis by identifying a firm’s unique resources and capabilities to determine its potential for competitive advantage.
• By using RBV, firm can understand internal activities, find “edge” over competitors.

Question 2

The core of RBV

Answer 2

• The firm is a bundle of resources and when integrated they create capabilities
• If those capabilities meet specific criteria, they become Core Competencies

Question 3

Core Competencies

Answer 3

1. Valuable: allows firm to exploit opportunities or get rid of threats in external environment
2. Rare: only a few have
3. Costly to imitate: other firms can’t easily develop/copy it
4. Nonsubstitutable: does not have a strategic equivalent.

Question 4

Path to competitive advantage

Answer 4

Resources, Capabilities (strengths), Core Competencies, Competitive Advantage