Tangible And Intangible Resources Essay

Resources are the firm-specific assets which useful for creating a cost or differentiation advantage and there are few competitor can acquired it with easily. An organisation’ resources can be considered in two categories which is tangible and intangible resources. Tangible resources are the resources that are easily to identify and evaluate. Intangible resources are the invisible assets or skills such as reputation, knowledge and information. Generally, the resources of the MyGlove can be considered under the following categories:

Financial resources

Financial resources is state that the money available for a business for spending in the form of cash, liquid securities and credit lines. MyGlove needs sufficient financial resources in order

Generally, MyGlove gets the latex from buying through the rubber market while the remaining latex is come from their own rubber plantation. From here, MyGlove has the core competencies in getting low costs raw material to produce the gloves. This is due to the latex can be easily found in Malaysia which Malaysia is known as the country which has a lot of rubber plantation and selling in lower price to the local company. Furthermore, MyGlove also has own their rubber plantation which it allow the company to buy less latex from the rubber market and help them save a lot of money on buying the rubber from suppliers. Therefore, it allow MyGlove to sell the glove in lower price to the

Besides, business level strategy is intended to help the firm to focus on its core competencies so it can satisfy a group of customer needs and preferences. The details of the business level strategy will provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product or service market. And a generic strategy is a general way of positioning a firm within an industry. Through the focusing on generic strategy allow executives to concentrate on the core elements of firm’s business level strategy.

In this case, MyGlove has used the cost leadership strategy as the business level strategy. To practice this strategy, MyGlove has compete for the largest number of customers based on the price of products. Cost leadership will be work well when the products are standardized. This is because a generic products will be more easily accepted by many customers and subsequently it can offer the lowest price to customers. MyGlove able to sell the products in lowest price without decreasing profits due to minimized the costs.

In order to be a cost leader in the industry, MyGlove is continuous efforts on produce lower costs relative to competitors. There are the reason that make MyGlove succeed to become cost leader in the industry is due to the following internal strengths which include:

• Access to the capital required