MGMT 4P90 Chapter Notes - Chapter 4: Trade Secret, Marketing Mix, Swot Analysis
21 Jan 2017
School
Department
Course
Professor
Document Summary
Resource-based theory possession of strategic resources provides an organization with a great opportunity to develop competitive advantages over its rivals. These competitive advantages in turn can help the organization enjoy strong profits. A strategic resource is an asset that is valuable, rare, difficult to imitate, and non-substitutable. Valuable resources that help a firm create strategies that capitalize on opportunities and ward off threats. Rare resources that are unique when contrasted with the resources of competitors. Difficult to imitate resources that cannot be easily duplicated by competitors and are often protected by various legal means, including trademarks, patents, and copyrights. Non-substitutable resources that exist when competitors cannot find alternative ways to gain the benefits that a resource provides. Sustained competitive advantage endures over time and help the firm stay successful far into the future. When analyzing organizations, common resources such as cash and vehicles are not considered to be strategic resources.
