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    Evaluating A Firm's Internal Capabilities: Group 6

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    PriNcess Asma
    The document discusses the resource-based view model for evaluating a firm's internal capabilities. It states that the resource-based view assumes a firm's resources and capabilities are the primary drivers of competitive advantage and economic performance. It identifies four categories of resources: financial, physical, human, and organizational. It also outlines two critical assumptions of the resource-based view model - that firms have different, heterogeneous resources and some resources are costly or impossible for other firms to obtain or imitate due to immobility. Finally, it introduces the VRIO framework for analyzing resources based on their value, rarity, imitability, and the firm's organization.

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    Evaluating A Firm's Internal Capabilities: Group 6

    Uploaded by

    PriNcess Asma
    22 views7 pages
    The document discusses the resource-based view model for evaluating a firm's internal capabilities. It states that the resource-based view assumes a firm's resources and capabilities are the primary drivers of competitive advantage and economic performance. It identifies four categories of resources: financial, physical, human, and organizational. It also outlines two critical assumptions of the resource-based view model - that firms have different, heterogeneous resources and some resources are costly or impossible for other firms to obtain or imitate due to immobility. Finally, it introduces the VRIO framework for analyzing resources based on their value, rarity, imitability, and the firm's organization.

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    strategic management

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    Chapter 3

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    The document discusses the resource-based view model for evaluating a firm's internal capabilities. It states that the resource-based view assumes a firm's resources and capabilities are the primary drivers of competitive advantage and economic performance. It identifies four categories of resources: financial, physical, human, and organizational. It also outlines two critical assumptions of the resource-based view model - that firms have different, heterogeneous resources and some resources are costly or impossible for other firms to obtain or imitate due to immobility. Finally, it introduces the VRIO framework for analyzing resources based on their value, rarity, imitability, and the firm's organization.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views7 pages

    Evaluating A Firm's Internal Capabilities: Group 6

    Uploaded by

    PriNcess Asma
    The document discusses the resource-based view model for evaluating a firm's internal capabilities. It states that the resource-based view assumes a firm's resources and capabilities are the primary drivers of competitive advantage and economic performance. It identifies four categories of resources: financial, physical, human, and organizational. It also outlines two critical assumptions of the resource-based view model - that firms have different, heterogeneous resources and some resources are costly or impossible for other firms to obtain or imitate due to immobility. Finally, it introduces the VRIO framework for analyzing resources based on their value, rarity, imitability, and the firm's organization.

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    You are on page 1of 7

    Chapter 3

    Evaluating a Firms Internal


    Capabilities
    Group 6
    The Resource- Based View Model
    used to help firms achieve competitive
    advantage and superior economic
    performance.
    assumes that a firms resources and
    capabilities are the primary drivers of
    competitive advantage and economic
    performance

    Resources and Capabilities
    Resources:
    tangible and intangible assets of a firm
    tangible: factories, products intangible:
    reputation
    Capabilities:
    a subset of resources that enable a firm to take
    full advantage of other resources
    marketing skill, cooperative relationships


    Four Categories of Resources:
    Financial (cash, retained earnings)
    Physical (plant & equipment, geographic
    location)
    Human (skills & abilities of individuals)
    Organizational (reporting structures,
    relationships)

    Two Critical Assumptions of the RBV
    Resource Heterogeneity
    different firms may have different resources.
    Resource Immobility
    it may be costly for firms without certain
    resources to acquire or develop them.
    some resources may not spread from firm to firm
    easily.

    The VRIO Framework
    Four Important Questions:
    Value
    Rarity
    Imitability
    Organisation

    The Question of Value
    Valuable Resources and Firms Performance.
    Applying the question of value.

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