Resource based view of brands

A question summarizing RBV approach. Definition The resource-based view RBV is a model that sees resources as key to superior firm performance.

Resource based view of brands

Resource based view of brands

Fundamentally, this theory formulates the firm to be a bundle of resources. It is these resources and the way that they are combined, which make firms different from one another. It is considered as taking an inside-out approach while analysing the firm.

This means that the starting point of the analysis is the internal environment of the organization. Resources Resources of the firm can include all assets, capabilities, organizational processes, firm attributes, information and knowledge. In short resources can be considered as inputs that facilitate the organization to perform its activities.

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All resources that an organization has may not have strategic relevance. Only certain resources are capable of being an input to a value creating strategy which put the organization in a position of competitive advantage.

These form the VRIN characteristics.

Resource based view of brands

The VRIN characteristics The important features for a resource to be strategically important are as below Valuable - When resources are able to bring value to the firm they can be a source of competitive advantage.

Rare - Resources have to deliver a unique strategy to provide a competitive advantage to the firm as compared to the competing firms.

Consider the case where a resource is valuable but it exists in the competitor firms as well. Such a resource is not rare to provide competitive advantage Inimitable - Resources can be sources of sustained competitive advantage if competing firms cannot obtain them.

Consider the case where a resource is valuable and rare but the competing organizations can copy them easily.

All you need to know about a Resource-Based View - Strategic Management Insight

Such resources also cannot be sources of competitive advantage Non-substitutable - Resources should not be able to be replaced by any other strategically equivalent valuable resources. If two resources can be utilized separately to implement the same strategy then they are strategically equivalent.

Such resources are substitutable and so are not sources of sustained competitive advantage. The VRIN characteristics mentioned above are individually necessary for the resources to be valuable.Furthermore, the resource-based view provides an avenue for organizations to plan and execute their organizational strategy by examining the role of their internal resources and capabilities in achieving competitive advantage.

conclude that the resource-based view may form the kernel of a unifying paradigm for strategic management research.

2 We hope that extending the resource-based view with 1 Volberda (, p. In the resource-based view, strategists select the strategy or competitive position that best exploits the internal resources and capabilities relative to external opportunities.

Given that strategic resources represent a complex network of inter-related assets and capabilities, organisations can adopt many possible competitive positions. merits and demerits of resource based view (rbv) Scholars argue that RBV is the ‘best’ strategy route in the growth of a firm’s strategy, hence, acquiring its relative merits.

Collis and Montgomery () assert that the RBV approach identifies characteristics which can create competitive advantage for the firm such as value, rareness and.

Brand managers are the ones who manage brands and hence become an important resource in developing brands.

Competitive Advantage and the Resource Based View of the Firm - Eric D. Brown

Brand management capability has developed from being an administrative function to a more strategic function (Rust et al. ; Low and Fullerton ).

conclude that the resource-based view may form the kernel of a unifying paradigm for strategic management research.

(PDF) Resource Based View (RBV) of Competitive Advantage: An Overview Electronic copy available at:

2 We hope that extending the resource-based view with 1 Volberda (, p.

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