Any firm that consider creating a sustainable competitive advantage must create a strategy capitalizing on its resources tangible and intangible , prior this step the firm needs to identify ,assess its own sources of intangible resources and value it. This paper is concerned with the intangible resources and its effect on creating a sustainable competitive advantage .
Intangible resources has always been considered as a corner stone for developing strategies and framing identity to firms . Intangible resources is to be considered as the primary source for generating revenue to the firm. Today an increasing focus by companies to control their intangible assets and resources (Kaufmann and Schneider ,2004 ). A lot of definitions that were
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Classification
Itami, et al. (1991) Technology , accumulated consumer information ,Brand name , reputation & corporate culture )
“intangible assets are invisible assets that include a wide range of activities such as technology, consumer trust, brand image, corporate culture and management skills.”
Brooking, 1996; Edvinsson & Malone, 1997 ;Sveiby, 1997; Roos, 1998, Bontis et al. 2000 Human capital: a source of value through his knowledge and both, implicit and explicit knowledge.
Organizational capital : "all explicit knowledge produced by the organization, intellectual property (patents, licenses …), processes and formalized procedures. It represents the internal structure of the company, the infrastructure (technologies, methodologies, communication system…), processes and culture "
Relational capital: "the elements linking the organization with its customer or business relationships , external stakeholders such as suppliers, shareholders, external partners,& allies.
Hall, R. (1992) Intellectual property & Knowledge
Harrison, et al.( 2000) Intangibles such as reputation, customer loyalty, name recognition, leadership, and standard setting, and these are vitally dependent upon human capital to ensure repeat
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Technology patent Motion Picture films company systems Tools
Knowledge Mortgage servicing rights Import quotas
Relational Cpital
Supplier relationship Customer relationship Consumer trust Reputation
Customer Loyalty Trademarks Franchise Marketing rights
Brand name Advertising
Measuring intangible assets
On the financial side , Intangible assets are not well clearly stated in accounting sheets ( Saunders , Brynjolfsson , 2010) and in most of the cases it is treated as expenses not as an investment in the balance sheet ( Lev ,B 2001).
30% of all the business investments are rooted back the IT sector ˡ . In one of the known studies ,
it was found that spending one dollar of computer hardware is correlated to ten dollars of market value . These results concluded that there are nine dollars of unmeasured IT intangible assets for every dollar measured of hardware ( Brynjolfsson, Hitt, and Yang , 2002). A further study clearly reveals that
(Arnow & Xakellis, 2001). Assets An asset is any item or property that can be considered to have value, owned by a person or business, in this case we will deal with that of the health care business area. “Cash, accounts receivable, notes receivable, and inventory are
According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor. TJ is Barney differentiates simple competitive advantage from sustainable competitive advantage, which is more durable because existing or future competitors cannot duplicate the benefits of the company’s strategy. Recommendations and
Human capital is referred to, “the talents that we have to do our jobs” (Aulette and Wittner 192). Some of the believe held toward women in the work force
These concepts are: description, reduction, essence, intentionality and
Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage
It also identifies the internal and external areas of the business that need improvement and that can prove to be successful. Table 3.1 Strengths: • Apple has an awesome and unique interface where they are ‘head and shoulders’ above the others, giving the Apple Watch a high edge over the new product
ISA 320 - Audit Materiality defines the concept as follows: Transactions, items, events will be material in financial statements if their omission, misstatement, misclassification or non-disclosure would distort the view given by the financial statements and would responsibly influence the understanding and economic decisions of users. Materiality, however, is not capable of general mathematical definition since it involves qualitative as well as quantitative considerations For example, materiality can be viewed in terms of size, an item being compared with a transaction or balance class or being compared with the financial statements as a whole (quantitative judgement) It can also be viewed in terms of the nature of an item irrespective
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
Often media points to Apple’s massive cash reserve as a key strength that the company could leverage to become even more successful (Ferrell & Hartline, 2014). If Apple asked, what should Apple do with the cash (Ferrell & Hartline, 2014)? Apple could better meet the consumer's needs and wants by strategically investing that cash for the company’s future by developing and leveraging a competitive advantage strategy (Ferrell & Hartline, 2014). A competitive advantage stems from strengths the organization possesses and weakness the competitor possesses (Ferrell & Hartline, 2014). Having a competitive advantage over their competitors can also be based on perception rather than reality (Ferrell & Hartline, 2014).
This can be used as marketing tools, and access to evidence of customer production costs have doubled in recent years with the introduction of the next generation of gaming devices. Other opportunities the organization is used as gaming devices in households over the next few years; you will notice the organization growth opportunities for the longest time of rewards. The new consoles will normally last for six or seven years and will pay for software sales during that period .Will override the consumer demand that technology and the next generation of games will hit the market. The challenge for smaller companies like Alphabet game to become in the market for potential advantages and longer period.
In the wake of achieving sustainability, the difficulties that lie ahead for Skillshare would be undertaking to remains competitive as far as services development and finding another request champion which would put them in front of their rivals. 7.3 Intellectual Property Issues A firm’s intellectual property comprises of intangible assets, which are considered the most significant to them. These assets will furnish a business with an upper hand in the business sector. The loss of its intangible assets could be just as unreasonable as a vanished physical property of a firm.
COST STRUCTURE OF SAMSUNG Low cost structure of Samsung and high responsiveness to economic events has made Samsung more competitive. For example, initially Samsung focused more on volume and domination on market rather than increasing profitability. However, in 1990s, during the Asian financial crisis, Samsung cut costs and reemphasized product quality and manufacturing flexibility, which allowed its consumer electronics move from project phase to store shelves within next six months. Under the resources-based view of strategic management, effective resources available to a firm, as well as the competency of a firm is responsible in affecting competitive advantage received by a firm.
Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.
ORGANIZATIONAL STRUCTURE & DESIGN KFC share in a divisional structure of Yum! Brands, Inc. Pizza Hut, Long John Silver’s, Taco Bell and A&W are the other divisions Offers spots to many people; good for senior executives Eager, alert, and flexible to growth and change KFC makes everything to be recognize and provide money to Yum! Brands, Inc. Chick-fil-a is KFC’s biggest competitor, and quickly growing in popularity. Other competitors include AFC Enterprises and McDonald’s CULTURE Big on diversity in the office