What is Resource Based View?
A theory of strategy that explains competitive advantage based on firm-specific resources and capabilities rather than industry structure.
What two conditions must a resource meet to create competitive advantage?
1) Scarcity
2) Relevance to key success factors
What does the VRIN framework stand for?
1) VALUABLE: increases willingness to pay and can neutralise threats
2) RARE: few competitors possess it
3) INIMITABLE: high costs/difficult to imitate.
4) NON-SUBSTITUTABLE: no alternatives deliver the same value
What is the resources-capabilities matrix?
What do you have, what can you do with it, how do you turn it into a competitive advantage?
Draw the resources-capabilities matrix
What is the VRIO framework?
VALUABLE: does it help them exploit opportunities?
RARITY: is the resource possessed by few competitors
INIMITABLE: self explanatory
ORGANISATION: is the firm fully organised to fully exploit the resource?
What is the difference between VRIN and VRIO
VRIN focuses on whether the resource is inherently capable of generating a completive advantage, whilst VRIO extends this to see if a firm is properly organised to exploit the resource. (VRIO is more appropriate for practical strategy analysis)
What is the RESOURCE APPRIASAL FRAMEWORK
Identifies where to strategically exploit key resources and capabilities
How can firms develop capabilities internally
1) Training
2) Team-Based Learning
3) Internal Culture Change
How can firms acquire capabilities externally
1) Hiring
2) Acquisitions
3) Alliances
What makes Zara difficult to Imitate
1) Organisational culture
2) Integrated design
3) Sourcing
4) Coordination
