In the last two decades‚ one of the most fundamental questions emerging in strategic management is how firms achieve and sustain competitive advantage. In a simplified world‚ understanding how firms achieve and maintain superior or abnormal returns means comprehending how firms position themselves in a certain market‚ what they produce and how they use resources at their disposal to do so. In this sense we may distinguish between the positional perspective‚ developed by Michael Porter‚ according
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between the resourced based view of strategy and the industrial organisation (I/O) based view of strategy The similarities and differences between the two views of strategy‚ resource-based view (RBV) and industrial organization (I/O) view will be critically discussed. According to Hanson‚ et al. (2011)‚ the RBV model specifies a firm’s strategy internally to earn above-average returns based on its unique resources and capabilities. Resources such as capital equipments‚ individuals’ skills‚ patents and
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Value-Chain Analysis to Identify Resources and Capabilities at Under Armour The resource-based view (RBV) of a firm lies primarily in the application of bundle of valuable interchangeable and intangible or tangible resources at the firm’s disposal. For a firm to transform a short-run competitive advantage into a sustained competitive advantage requires these resources be heterogeneous and immobile. This is perhaps the biggest struggle Under Armour faces – the challenge of maintaining a differentiated
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market competitors who are Rolls Royce‚ General Electric and Pratt & Whitney. The resource based view (RBV) approach to strategy represents a substantial shift in emphasis towards the individual resources of an organisation and away from the market-based view that strategists such as Professor Michael Porter favoured during the 1980s and early 1990s. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of
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Summary of The Dynamic Resource-based View: Capability Lifecycles In recent years‚ the dynamic resource-based view (RBV) has attracted more and more attention. By definition‚ the dynamic RBV is designed to deal with resources and capabilities over time. This article introduces the concept of the capability lifecycle (CLC)‚ and the CLC provides a comprehensive framework for the dynamic RBV of the company. The CLC refers to a general pattern and paths in the development of an organizational capability
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This article was downloaded by: [175.145.110.157] On: 23 March 2013‚ At: 02:22 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House‚ 37-41 Mortimer Street‚ London W1T 3JH‚ UK Journal of Marketing Management Publication details‚ including instructions for authors and subscription information: http://www.tandfonline.com/loi/rjmm20 Competitive advantage‚ private-label brands‚ and category profitability Michael S. Pepe
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Outline the RBV of the firm and show how this new concept offers HR opportunities to be a more strategic function. Introduction The resource-based view (RBV) is a business management tool used to determine the strategic resources available to a company. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm ’s disposal. To transform a short-run competitive advantage into a sustained
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companies may be able to access inputs more cheaply than if they were to produce them directly. In this case‚ the externalization advantage is being calculated in financial terms. A more advanced approach to outsourcing is the ’resource-based view (RBV) of the firm’ construct‚ arising from a seminal text by Edith Penrose (1959). This is an analysis that identifies a
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and Nelson António2 1 Católica-Lisbon School of Business Economics‚ Universidade Católica Portuguesa‚ Palma de Cima‚ Lisbon‚ Portugal. 2 ISCTE-IUL Lisbon‚ Av. Forças Armadas‚ Lisbon‚ Portugal. Accepted 13 July‚ 2012 The resource-based view (RBV) argues that valuable‚ rare‚ inimitable resources and organization (VRIO) lead to competitive advantage. Dynamic capabilities (DC) are a comparatively new field and the related literature is mainly conceptual. Capabilities can be considered as the
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Week 5 Block 2 – Reading 5 Looking Inside For Competitive Advantage Jay Barney 1 Introduction • Focus has been placed on the relationship between the firm’s environmental opportunities and threats‚ and the firm’s strengths and weaknesses (SWOT analysis ). • Michael Porter’s work on the ‘five forces model’ helps understand the importance of external threats and opportunities. • Barney emphasizes the competitive implications of the firm’s internal strengths and weaknesses. To Barney the SW should
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