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by Clemens Werkmeister | ''by Clemens Werkmeister'' | ||
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===Relevance of resources=== | ===Relevance of resources=== | ||
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We will keep in mind both goals, but focus first on the relation between resources and the success of the company. This relation is emphasized by the '''Resource-based view of the company''' (RBV; starting with Wernerfelt (1984); see Burr/Stephan/Werkmeister (2011), pp. 21 ff.). The resource-based view assumes that markets are imperfect and that the distribution of resources among companies is heterogeneous. The resource-based view states that these differences between the resources can be the main source of competitive advantages of a company. | We will keep in mind both goals, but focus first on the relation between resources and the success of the company. This relation is emphasized by the '''Resource-based view of the company''' (RBV; starting with Wernerfelt (1984); see Burr/Stephan/Werkmeister (2011), pp. 21 ff.). The resource-based view assumes that markets are imperfect and that the distribution of resources among companies is heterogeneous. The resource-based view states that these differences between the resources can be the main source of competitive advantages of a company. | ||
=== | ===Characteristics of resources === | ||
In order to gain competitive advantage, the company should focus on idiosyncratic resources which – in the best case – meet five characteristics. Resources can provide competitive advantages, if they are | In order to gain competitive advantage, the company should focus on idiosyncratic resources which – in the best case – meet five characteristics. Resources can provide competitive advantages, if they are | ||
* valuable: the resource must bring a benefit to the company and its customers, and provide a competitive advantage. | * valuable: the resource must bring a benefit to the company and its customers, and provide a competitive advantage. | ||
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* rare: the resource should be difficult to find or purchase on the market. | * rare: the resource should be difficult to find or purchase on the market. | ||
* inimitable: competitors should find it difficult to copy the resource; depending on the resource it might even be difficult to identify the exact source of competitive advantage. | * inimitable: competitors should find it difficult to copy the resource; depending on the resource it might even be difficult to identify the exact source of competitive advantage. | ||
* non-substitutable: resources generate strategic advantages if no substitutes are available, id est no other resources exist that provide the same benefit. | * non-substitutable: resources generate strategic advantages if no substitutes are available, id est no other resources exist that provide the same benefit.<br> | ||
Such resources can be identified - among other techniques - by [[Company Profile| company profiles]]. | |||
===Kinds of resources=== | ===Kinds of resources=== | ||