Resource-Based View Strategic Planning

The resource-based view strategic planning uses company's resources to generate a viable practical le strategy. It holds organization assets as the essential input for overall strategic planning, highlighting the route in which competitive advantage can be derived through rare resource arrangements. To route a short-run competitive advantage into a sustained competitive advantage needs heterogeneous resources in nature and not perfectly mobile (The Resource-Based View, 2015).

This model considers resources as vital to superior firm performance. As figure 3 illustrates, resources fall extensively into two classifications: tangible and intangible. Tangible resources have physical properties and are visible. Samples of tangible resources are

Tangible resources, for example buildings or PC servers, can be purchased on the open business sector by any comers who have the necessary cash. In any case, a brand name must be built, frequently over long periods of time. Google achieved its enormous brand valuation decently fast because its ubiquitous Internet presence, while most of the other firms in the worldwide top-10 most significant brands-Apple, IBM, McDonald’s, Coca-Cola, Marlboro, AT&T, Microsoft and Verizon-took much longer (Srivastava et al.,

By raising the apparent value of the product, the resource increases the firm’s benefit, in turn increasing the firm’s incomes. If the resource allows the firm to lower its cost, it likewise builds benefit.

Honda’s competency in designing and creating proficient engines expands the perceived value of its products for customers. That competency, upheld by its lean manufacturing system, empowers quality to be composed and built directly into the product and also helps Honda lower its expenses. Thus, Honda’s competency in designing and building engines is viewed as a valuable resource in the VRIO outline.

In firm mission for competitive advantage, it next needs to find out if the resource is also rare