6 - Understanding the Organizational Resource Base
1. Do you agree or disagree with RBV theorists that internal resources are more
important for a firm than external factors in achieving and sustaining competitive
advantage? Explain your position.
I don't agree nor disagree with the idea that internal resources are more important
that external factors in achieving/sustaining competitive advantage. In my
understanding, existing core capabilities and external factors should be both
considered to come up with competitive positioning. To be focused too much on
internal resources is to run the risk of not coping with changing market
evironments. Being overly into external factors, would result in ineffective and
unsustable strategy.
2. Among the four characteristics of assets as organization’s sustainable
competitive advantage, which one for you is the most important? Why do you think
so?
In my opinion, the important assets of an organization sustainable competitive
advantage would be Customer-based assets, especially 'relationships with
customers'. Giving value to customers is of the reasons businesses exist. Without
excellent relationship with customers, there's no trust. I feel like customers'
trust is important in paving the way build loyalty and good brand reputation, all
of which is proportional to the company's longevity and success. Additionally,
customer insight is also important in developing and improving products.
3. Explain in your own words the meaning of ‘isolating mechanisms’
The way I see it, Isolating mechanisms area ways that makes it possible for
competitors to copy your internal resources. It provides protection for the firm
because there are certain processes, tools, or even culture that are difficult or
even impossible to duplicate.
Isolating mechanisms operate in three main levels. First, the competitor must be
able to identify the resources responsible for the strategy. Second, to be able to
acquired the said resources. And finally, most resources depreciate over time so
competitors may find it difficult to duplicate the strategy.
4. List three firms you are familiar with and give a distinctive competence for
each firm.
Distinctive competencies of firms:
(1) Huawei
Innovation: Holds thousands of IP patents.
Excellent company culture- Giving high salary, housing and other benefits to
employees. Huawei is owned wholly by its employees.
(2) IKEA
Efficient value chain approach- Ikea integrates the customer into the process and
introcudes a two-way value system between customers.
It generates low cost savings by using a flat packing process that allows more
merchandise to be shipped and stored between distribution systems.
(3) HUMAN NATURE
Pro-Philippines- Using locally grown raw materials to make environment friendly
products. They also have wide array of products to choose from. Company culture- A
1. Do you agree or disagree with RBV theorists that internal resources are more
important for a firm than external factors in achieving and sustaining competitive
advantage? Explain your position.
I don't agree nor disagree with the idea that internal resources are more important
that external factors in achieving/sustaining competitive advantage. In my
understanding, existing core capabilities and external factors should be both
considered to come up with competitive positioning. To be focused too much on
internal resources is to run the risk of not coping with changing market
evironments. Being overly into external factors, would result in ineffective and
unsustable strategy.
2. Among the four characteristics of assets as organization’s sustainable
competitive advantage, which one for you is the most important? Why do you think
so?
In my opinion, the important assets of an organization sustainable competitive
advantage would be Customer-based assets, especially 'relationships with
customers'. Giving value to customers is of the reasons businesses exist. Without
excellent relationship with customers, there's no trust. I feel like customers'
trust is important in paving the way build loyalty and good brand reputation, all
of which is proportional to the company's longevity and success. Additionally,
customer insight is also important in developing and improving products.
3. Explain in your own words the meaning of ‘isolating mechanisms’
The way I see it, Isolating mechanisms area ways that makes it possible for
competitors to copy your internal resources. It provides protection for the firm
because there are certain processes, tools, or even culture that are difficult or
even impossible to duplicate.
Isolating mechanisms operate in three main levels. First, the competitor must be
able to identify the resources responsible for the strategy. Second, to be able to
acquired the said resources. And finally, most resources depreciate over time so
competitors may find it difficult to duplicate the strategy.
4. List three firms you are familiar with and give a distinctive competence for
each firm.
Distinctive competencies of firms:
(1) Huawei
Innovation: Holds thousands of IP patents.
Excellent company culture- Giving high salary, housing and other benefits to
employees. Huawei is owned wholly by its employees.
(2) IKEA
Efficient value chain approach- Ikea integrates the customer into the process and
introcudes a two-way value system between customers.
It generates low cost savings by using a flat packing process that allows more
merchandise to be shipped and stored between distribution systems.
(3) HUMAN NATURE
Pro-Philippines- Using locally grown raw materials to make environment friendly
products. They also have wide array of products to choose from. Company culture- A
