ADMS 1010 Lecture Notes - Lecture 5: Competitive Advantage, Profit Maximization

• School: York University
• Department: Administrative Studies
• Course: ADMS 1010
• Professor: Eytan Lasry

Document Summary

Economic thinking has become a significant aspect of management and corporate strategy. This is apparent after reading the article competing on resources by collis and montgomery. In the article, the authors indicate the importance of adopting the resource-based-view (rbv) in order to better understand the priorities in a given industry, and subsequently gain competitive advantage over competitors. The resource-based-view is an approach to corporate strategy that combines the internal and external perspectives. It sees companies as very different collections of physical and intangible assets as well as organizational capabilities. These assets and capabilities (or resources) determine how efficiently and effectively a company is run. Competitive advantage is gained based on a company"s valuable resources and how they use them. One of the purposes of rbv is to link a company"s internal capabilities (what it does well) with external capabilities (what the market demands and what competitors offer).