Resource Based View

These are resources and capabilities that earn rents and Create / Protect CA See also Competitive Advantage and Create Positional Advantage

Similiar activities - using same production line for different products. Complementary activities - co-ordinating dissimilar strategic assets (eg marketing and production activities. Given identicl bundles of resources firms would use them differently with different outcomes. Contexts that the firm experiences are highly idiosyncratic. This places a high premium on those who can formulate options.

Core Competence - Capabilities&resources that create Positional Advantage Capabilities - are firm-specific and are tacit

Related issues

• 1. Dont over estimate the ability to transfer of assets to new product and firms (see M&A) It may require adaptation or customization
• 2. managers need to leverage the resources - focus on a few so that competences can emerge. Toyota re-designed supply chain Sony pioneered minaturization
• 3. complementing resources - blending and balancing - Co-specialized Assets Integrative skills
• 4. Conserving resources - co-opting shielding - making resources reusable

Canon took on Xerox but on the same market

• 5. expediting resources- investing to get a quick a return on investment as possible
• 6. Identifying Intangibles -
  • Intellectual property
  • Databases
  • Brand
  • Culture
  • Licences
  • Reputation

7. It has to hard to imitate, durable, appropriate, lack of substituability, competitive superiority