COMM 210 Lecture Notes - Lecture 2: Root Mean Square, Imitation
4 Dec 2018
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Document Summary
Barney proposes a theory that looks at internal environment of organization major claims- Looking at external environment of an organization is not enough to say if the rm will be competitive. Also need to analyze the competitive implications of rms internal strengths and weaknesses. A rm will be successful it has resources with right attributes and characteristics. Rm will have sustained competitive advantage if its resources and capabilities are valuable , rare, and exploits its full potential. Resources & capabilities - nancial, physical, human, organizational. 1- question of value - does a rms resource and capability enable it to exploit an opportunity/ neutralize a threat. 2- question of rareness - how many competing rms already possess these valuable resources and capabilities. 3- question of imitability - how dif cult is it to imitate this resource , do rms without a resource or capability cost a disadvantage in obtaining it.
